General Instrument and Spyglass® to Establish new Digital Cable Software Integration CenterSpyglass to Provide $20 Million of Development Services and Internet Technology through Jointly Owned Facility
Companies to Support Software and Content Developers in Bringing Innovative Applications to GI's Digital Cable Platform
Horsham, Pa. and Naperville, Ill. Wednesday, October 21, 1998 General Instrument (NYSE: GIC) and Spyglass (NASDAQ: SPYG) announced today a new strategic partnership that includes a minimum $20 million, three-year solutions agreement in which Spyglass will partner with General Instrument to develop and integrate new Internet cable services and technologies. Spyglass and General Instrument are establishing a Digital Software Integration Center for the development of new cable services and applications. This center will be jointly owned by Spyglass and General Instrument and will be an expansion of GI's existing Horizon's Developers Program.
In a related move, it was announced that General Instrument would also take a 5 percent equity position in Spyglass with an option to acquire another 5 percent. Both announcements are seen as further evidence of the increasing importance both General Instrument and the cable industry place on software. The new digital software integration center, which will be owned by Spyglass and General Instrument, will be a centralized location for third-party technology companies, as well as for General Instrument's partners and customers, to come together to build services and applications for General Instrument's digital cable platform.
"Our broadband network customers need us to deliver a platform that will be capable of enabling a wide-range of revenue-generating services and applications," said David Robinson, senior vice president and general manager for GI's Digital Network Systems group. "Advanced software is central to the success of the platform and Spyglass has the right mix of Internet expertise, software and services to assist us with the development of the next generation digital services."
This is a significant milestone for Spyglass, which officially launched a cable and satellite television consulting practice only late last year. Since that time, the company has worked to refine its own technologies to make them easier to adapt to television environments. Also, Spyglass has developed a deep expertise in related technologies such as PersonalJava and Windows CE that may eventually play key roles in the cable environment. Consequently, Spyglass will be able to work with anyone interested in building applications for General Instrument's platform, regardless of the technology or operating system that they plan to use.
"We are extremely pleased to partner with General Instrument on this important project," said Douglas Colbeth, Spyglass president and CEO. "Not only is General Instrument the leader in their industry, they also have a vision for the future of digital cable, embodied in the new integration center, that will make certain they maintain that leadership position."
About General Instrument
General Instrument Corporation (NYSE: GIC) is a leading worldwide provider of integrated and interactive broadband access solutions, teaming with its business partners to lead the convergence of the Internet, telecommunications and video entertainment industries. http://www.gi.com/
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