Excerpt:
Keith I. Bolton, Vice President and Chief Technology Officer of Applied Digital Solutions, commented, ``We are particularly excited about the NETrax(TM) system's secure digital encryption and distribution capabilities. Applied Digital intends to incorporate this technology into our Digital Angel Delivery System, providing secure and fast transmission of sensitive data.''
Article In Full:
Monday November 6, 8:22 am Eastern Time
Press Release
MCY Enters Into Multi-Million Dollar Deal to License Its Secure Distribution and NETrax Systems
NEW YORK--(ENTERTAINMENT WIRE)--Nov. 6, 2000--Digital music distributor MCY.com, Inc. (OTC-BB: MCYC - news) announced today that it has entered into an agreement to license its proprietary, secure digital encryption and distribution technologies, including its NETrax(TM) software, to Applied Digital Solutions, Inc.
The agreement allows Applied Digital to utilize MCY's NETrax(TM) technologies for certain business-to-business applications. Under the terms of the agreement, MCY will receive net consideration of approximately $30 million for the grant of the license, which is subject to government clearance under the Hart-Scott-Rodino Act of 1976, as amended. The consideration is being delivered in the form of ADS common stock. Management anticipates that revenue from the transaction will be recognized either in the fourth quarter ended December 31, 2000 or in the first quarter of fiscal 2001 ended March 31, 2001. The announcement was made today by Bernhard Fritsch, Chairman and CEO of MCY.
The transaction augments MCY's recent expansion of its business strategy into the fast-growing market for multi-channel digital content distribution, and positions MCY as a provider of business-to-business technology solutions. A leader in digital music events, MCY is also a pioneer in providing secure and legal solutions for downloading music from the Internet and other digital channels. Applied Digital Solutions is a leading single-source provider of e-business solutions.
In making the announcement, Mr. Fritsch said, ``Successful digital commerce is dependent upon copy protection, and protection of intellectual property, which are the fundamental strengths of MCY's NETrax(TM) System. By licensing our system, ADS is enhancing its position as a leading provider of digital solutions. For MCY, this transaction shows the strong demand for our technology.''
Under the terms of the agreement, MCY has granted Applied Digital a license to MCY's digital encryption and distribution systems, including its NETrax(TM) software, for use in various non-entertainment business-to-business applications, including medical and education, among others. Applied Digital plans to incorporate the digital data protection of audio and video files made possible by NETrax(TM) into the products and technologies it has developed to serve this range of businesses, including hospitals, biotechnology companies, and others.
Keith I. Bolton, Vice President and Chief Technology Officer of Applied Digital Solutions, commented, ``We are particularly excited about the NETrax(TM) system's secure digital encryption and distribution capabilities. Applied Digital intends to incorporate this technology into our Digital Angel Delivery System, providing secure and fast transmission of sensitive data.''
A secure and legal alternative for accessing online music, MCY offers an unparalleled array of songs and music events for audiences worldwide. MCY has established itself as an industry leader in both pay-per-view and on-demand webcasts of events featuring today's top stars, including the Backstreet Boys, Puff Daddy, Michael Jackson, Paul McCartney, (a)NSYNC, Luciano Pavarotti, and Pete Townshend, among others. In addition, MCY controls an extensive catalog of music available for secured digital downloads. MCY.com (OTC-BB: MCYC - news) is based in New York with European headquarters in Munich. For more on MCY, visit www.mcy.com.
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 (the ``Act''). In particular, when used in the preceding discussion, the words ``plan,'' ``confident that,'' ``believe,'' ``scheduled,'' ``expect,'' or ``intend to,'' and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the timing and delivery of the Company's products, general acceptance of the Company's products and technologies, competitive factors, and other risks described in the Company's SEC reports and filings.
Contact:
Susan Blond, Inc.
Lisa Vega, 818/788-8474
Lisa@susanblondinc.com
or
MCY Europe
Tia Ernst, +49-89-24-44-07-24
t.ernst@mcy.de
