Destiny Media Technologies Announces Planned Sale of Clipstream® Technology to Subsidiary
Vancouver, BC. - September 12, 2001 - Destiny Media Technologies, Inc. (OTCBB: DSNY), a leader in developing easy-to-use tools and enabling technologies to distribute digital media via the Internet, has arranged for the sale of the AudioMail™, AudioClipstream™ and VideoClipstream™ Java based streaming audio and video on demand technologies by its operating subsidiary, Destiny Software Productions Inc., to a subsidiary company, Clipstream Technologies, Inc (CTI). Completion of the sale is conditional on CTI obtaining financing of at least $750,000 CDN.
The $5.7 million CDN purchase price will be paid with 22,800,000 shares of CTI. After this transaction is completed, Destiny will control 95% of the 24,000,000 issued and outstanding shares of CTI. Destiny will receive royalties aggregating up to $2 million US on a declining scale on CTI's first $30,000,000 US of gross revenues.
In addition, pursuant to a product development agreement, Destiny will do ongoing work to warranty and maintain the existing code for twelve months after closing against payment of $62,500 per month CDN. Destiny will also provide the services required to upgrade the three technologies on a "work for hire" basis during this period. Finally, during CTI's start-up period, Destiny will provide the office services and staffing required to maintain ongoing operations.
CTI will receive all products, technology, equipment, contracts, marketing material, software, documentation, websites, prepaid expenses and goodwill, including the right to the name "Clipstream" and a perpetual license to Destiny's compression codec patents. CTI will not receive ownership of the compression patents (which are used in other Destiny products) or any other inventions or products not specifically named in this agreement.
CTI intends to make a private offering of up to $1.5 million CDN. at .25 per share.
Destiny President, Steve Vestergaard comments on the impact to shareholders. "This transaction allows CTI to properly fund the sales and marketing of the Clipstream™ product line while ensuring that Destiny has funds to build out and market our other products which are not included under this agreement, such as RadioDestiny™ and MPE™, and to develop new technologies."
David Lawrence, CEO adds, "The market demand and acceptance of Clipstream by brand name customers has been terrific. With the injection of capital into CTI, we will be able to scale our sales force much more quickly than we have in the past. Both groups of shareholders should benefit by this transaction."
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