Destiny Media Technologies to Spin Off Streaming Audio Technology to Wholly Owned Subsidiary
VANCOUVER, B.C. - Destiny Media Technologies, Ltd (DSNY - Pink Sheets) announced today that subject to shareholder approval, the Clipstream™ and Bannerstream™ products will be sold to Clipstream Technologies, Inc., a wholly owned subsidiary. The technology transfer includes the rights to the products, source code, trademarks and patents.
Clipstream™ is a fast, easy to implement and ultra small java applet which enables over 90% of web surfers to hear streaming audio, directly embedded on web pages, without having to rely on external applications or bulky plug-ins. The current popular streaming audio solutions from Microsoft (Nasdaq - MSFT) and Real Networks (Nasdaq - RNWK) require the user to install and configure a plug-in.
Bannerstream™ adds streaming audio capabilities to existing web banner ads. Rich media ads can provide up to a 700% increase in 'click throughs' to the advertiser's site. According to Media Metrix (Business is Booming, March 20, 2000) the number of companies advertising on the internet grew by approximately 17% in the final quarter of 1999 with the number of ad impressions reaching 38 billion in that time period.
Clipstream Technologies, Inc. will be initially financed with private funding. The proceeds of this funding will be used to build a separate management and marketing team to exploit the large market potential of rich media banner advertising and web page streaming audio technology. The company will consider several future financing opportunities including an Initial Public Offering.
As part of the terms of the agreement, Destiny will retain the right to use the proprietary compression algorithm in other products. The agreement provides for a payment to Destiny and an on going royalty stream.
The spin-off allows Destiny to concentrate on its core competencies including the continued development and marketing of its streaming media products and its proprietary digital music distribution format "MPE". MPE is an all-in-one multimedia file format with built-in e-commerce, digital rights management; secure distribution and visual display functions.
Destiny CEO Steve Vestergaard explains, "The MPE media distribution system has been well received and is taking a lot of management focus. The opportunity for Clipstream is tremendous, but we believe it requires a separate team to exploit the market potential. From both an operations and funding perspective, it makes sense to move this product line into a new corporation."
Mark Lotz, Destiny CFO adds, "Clipstream Technologies will be funded separately with the goal of attaining a separate public market listing. We expect this strategy will increase shareholder value in Destiny."
About Destiny Media Technologies, Inc.
Destiny Media Technologies, Inc. (http://www.dsny.com) is a leader in developing easy-to-use tools and enabling technologies to distribute digital media through the Internet. The company's suite of streaming and downloadable products includes: MPE™ (http://www.destinympe.com), a complete, secure media distribution system that provides e-commerce and digital rights management directly from within an MP3-compatible multimedia file; Clipstream™ (http://www.clipstream.com), a java-based tool which enables web pages, e-mail and banners to stream audio without the use of a player; Video Clipstream™ (http://www.videoclipstream.com), a technology for embedding streaming video into a web page or e-mail; and the RadioDestiny Broadcaster™ (http://www.radiodestiny.com), which allows a user to webcast live or scripted internet radio from a computer to anyone on the Internet. Established in 1991, the company is headquartered in Vancouver, Canada.
For more information contact:
|Destiny Media Technologies, Inc.|
President & CEO
Destiny Media Technologies, Inc.
604-609-7736 ext. 222