Addition of Broadband Wireless ISP and Systems Integration Company Will Expand IDC's Broadband Network Solutions Offerings
OTTAWA, Canada - July 25, 2000 - INTERNATIONAL DATACASTING CORP ("IDC-T;IDA-M"), a leading supplier of broadband satellite datacasting solutions, announced that it intends to acquire Ottawa-based companies Storm Internet Services (Storm) and CDS/Prometheus (CDSP). The proposed acquisitions will add to IDC's strength in providing advanced networking solutions by enhancing its ability to aggressively pursue hybrid broadband last mile opportunities.
"The proposed combination of our companies is extremely exciting," said Ron Clifton, president & CEO of IDC. "This strategic acquisition will strengthen our local base of operations on the systems integration and service side and also provide us with new complementary product lines we can offer to our international customers. Together, we will provide leading-edge networking solutions to service providers and network operators looking to move broadband content to the edge of the Internet and beyond. IDC specializes in long-haul multimedia delivery and Storm and CDSP provide the "last mile" solution. In addition to having a common base in Internet Protocol (IP) networking and point-to-multi point distribution we share a common vision of a wireless world."
CDSP provides a host of services and products, such as Virtual Private Network (VPN) design and installation, firewalls, network design and deployment, network support services, bridging applications for wired and wireless
LANs and WANs and the design and manufacture of wireless network products. CDSP is the supplier for equipment, support, installation, solutions development and installation of Storm's networks and service offerings
Established in 1996, Storm operates a broadband wireless Internet network with a current coverage area of more than 4000 sq. km. Storm delivers last mile connectivity solutions to a base of more than 3000 consumer and enterprise subscribers in Ottawa, Ontario and surrounding regions.
"This deal is win-win for all of us, " said Barry Williams, CEO of CDSP. "As information sharing specialists, we have created a unique model for moving information rapidly. The merging of our extensive wireless and internet experience, along with our network operations and systems management experience, with IDC's satellite datacasting capabilities and international distribution will put our combined companies in a position to deliver complete information sharing solutions anywhere in the world."
Herb Hartwig, president of Storm, said, "Our commitment to providing quality services to our Ottawa-area customers remains unchanged. In fact, this deal will allow us to offer even more exciting services in the future such as satellite connectivity and streaming multimedia."
It is expected that the purchase price of CDN$4,000,000 for the two companies will be satisfied by the issuance of IDC Common Shares and payment of cash. A portion of the total purchase price will be paid at closing, with the remainder being paid one year after closing, subject to the accomplishment of a pre-agreed set of performance targets.
The acquisitions are subject to board and regulatory approvals and as well as the entering into of definitive agreements.
About CDS/Prometheus:
CDS/PROMETHEUS (CDSP) is a company devoted to information sharing and is the result of the merging of CDS Data Systems and PROMETHEUS Information Services, both founded in 1996. CDSP was formed in November 1999 as a merging of the teams of talented people from both companies with backgrounds in computers, networking, Intranet, Internet and high-speed communications. CDSP works with ISPs, architects, builders, property management companies, business and communities to provide 2 way high-speed Internet solutions. The solutions that are provided are in the 2Mb to 100Mb range and utilize the latest in wireless technology. Visit CDSP at www.cdsp.net.
About Storm:
Storm Internet officially went on-line July 15th, 1996, providing Internet access to home and business users with a wide variety of internet access services ranging from traditional analog 56K dial up access, domain hosting to dedicated high speed wireless internet connections. Storm prides itself on implementing the leading edge in new technologies to provide faster and more reliable connectivity, as well as simpler and more powerful web interfaces. In four years of operation, Storm's client base has grown to well over 3,000 users and revenues have had an average annual growth rate exceeding 100%. This growth has been achieved consistently and reliably because of the dedication and care taken to maintain excellent customer service. Visit Storm at www.storm.ca.
About International Datacasting Corporation
IDC (TSE:IDC) provides advanced systems and services for the broadband satellite distribution of digital data in a variety of point-to-multipoint applications. With an existing base in 35 countries worldwide, IDC is at the forefront of delivering IP-based satellite datacasting solutions. Applications for IDC's products include high-speed Internet-via-satellite networks, corporate Intranets, distance education networks, radio networks, business radio networks, weather networks, financial information and paging networks. IDC is headquartered in Ottawa, Canada, has a US sales office in Atlanta, Georgia and markets internationally through an established network of partners and distributors. Visit IDC on the web at www.intldata.ca.
Certain of the above statements regarding IDC constitute forward-looking statements, which may involve risks and uncertainties. A variety of factors could cause actual results to differ from the anticipated results expressed in such forward-looking statements.
TEL: (613) 596-4120 International Datacasting Corporation Michael E. Rack E-mail: mrack@intldata.ca
TEL: (613) 567-6585 Storm Susan Brandt E-mail: susan@storm.ca
TEL: (613) 747-8845 CDS/PROMETHEUS Earl Matthews E-mail: earl@cdsp.net