Geocast Network Announces Alliance To Deliver Rich-Media Content To PC Users Via Broadcast Infrastructure
Hearst-Argyle Television Joins With Silicon Valley Startup In New Information, Entertainment And Commerce Service Geocast Network Systems, Inc. today announced an alliance with leading TV station group Hearst-Argyle Television, Inc. (NYSE: HTV) to use digital television broadcast signals to deliver a new rich media program service to the PC desktop. The breakthrough approach bypasses the congestion and delays of the Internet, making customized information, entertainment and commerce instantly available to a mass audience of PC users. Geocast, a privately held Silicon Valley start-up with backing from three of the nation's leading venture capital firms, is laying the groundwork for a comprehensive new programming service for the PC. Geocast calls its new approach a ""crossover architecture"" because it combines the bandwidth and immediacy of broadcast with the customization and control of the PC. Under the terms of the agreement, Hearst-Argyle (NYSE: HTV) and Geocast will form a long-term partnership in which HTV will contribute bandwidth, content and promotional opportunities. In addition, Hearst-Argyle will invest in Geocast and participate in revenue streams associated with its content. Bob Marbut, Chairman and Co-Chief Executive Officer of Hearst-Argyle will become a Geocast board member. With 22 owned stations and another four under management, Hearst-Argyle reaches nearly 18 percent of U.S. households. Beyond The Internet ""The Internet is revolutionizing our economy and personal lives,"" said Geocast CEO Joe Horowitz, ""but its point-to-point architecture was never designed to deliver rich media content to a mass audience. The Internet industry is forced to spend endlessly on infrastructure in order to mimic what broadcasting does easily and efficiently. By moving beyond the Internet and partnering with leading broadcasters such as Hearst-Argyle Television, we can make programming with full-motion video and CD-quality sound instantly available to PC users. Our approach doesn't replace the Internet, but rather it frees up the Internet to do what it does best."" ""We're excited by the Geocast crossover architecture,"" said Hearst-Argyle Chairman Bob Marbut, ""because it opens a whole new opportunity for our stations to serve their local communities. Now we can develop specific programming for the PC user and gain additional returns on the investment we're already making in digital broadcast capacity."" Marbut pointed out that ""on the Internet, the more users you serve, the more infrastructure you need. But with broadcast, a single one-to-many transmission can serve millions of users."" A Technology And Media Powerhouse With A Customer Focus Don Mattrick, President of Worldwide Studios for Electronic Arts, joins the Geocast board. ""Geocast is not just about world-class technology. We're focused on creating a consumer driven business,"" Horowitz said. ""That's why we're so excited about the participation and perspective of new board member Don Mattrick of Electronic Arts. His company has unmatched experience and success in creating great consumer entertainment products for the PC environment."" Brains, Capital And Experience Converge In a unique convergence of brainpower, capital and industry experience, Geocast Network Systems, Inc. and three powerhouse Silicon Valley venture firms joined forces earlier this year. Since its initial funding in December 1998, Geocast has been kept under close wraps by a consortium of premier venture capital firms - Mayfield Fund, Kleiner Perkins Caufield & Byers, and Institutional Venture Partners. Their investment in the company marks the first time these firms have all backed the same venture. Mayfield Fund partner Kevin Fong said, ""From a telecommunications perspective, Geocast represents the next communications revolution."" Kleiner Perkins partner William Randolph Hearst III said Geocast has assembled ""a Hall-of-Fame All-Star"" team in management and technology. ""You rarely see a start-up company with so many people who have already made their marks in so many significant ways,"" he said. Leading the Geocast team is Horowitz, chairman and CEO, a veteran venture capitalist with more than 20 years' experience in forming and guiding both technology and consumer start-up companies. During his 10 years at US Venture Partners, the firm invested in more than 100 early stage companies ranging from Sun Microsystems and StrataCom to Ross Stores and Avia. More recently, through his firm ICON Ventures, he was instrumental in pioneering the Electronic Programming Guide business through his efforts with Starsight Telecast which he merged with Gemstar. The software development team includes founding members from Netscape, including former Netscape fellow and founding employee Tom Paquin; key talent from Silicon Graphics and IBM; as well as individuals from Cal Tech, Stanford and Berkeley. An unparalleled hardware team drawn from PMC-Sierra, Intel, and Cyrix is based in Portland, Ore.. Geocast has also recruited from the ranks of the world of traditional and new media including broadcasting, satellite, newspaper, online services, and cable. Key executives include: John Abel, formerly the Executive Vice President of the National Association of Broadcasters (NAB); Charlie Jablonski, formerly the Vice President of Broadcast and Network Engineering for NBC, and Anita Wallgren, formerly legal advisor to Federal Communications Commissioner Susan Ness. About Geocast Network Systems Inc Geocast is building a new network that leverages digital broadcast to deliver rich media information and programming to the PC desktop. Geocast is backed by the premier venture firms of Mayfield Fund , Kleiner Perkins Caufield and Byers, and Institutional Venture Partners. Board members include Joe Horowitz; William Randolph Hearst III of Kleiner Perkins Caufield & Byers; Kevin Fong of Mayfield Fund; Bob Marbut, Chairman and Co-Chief Executive Officer of Hearst-Argyle; Don Mattrick, president of Worldwide Studios for Electronic Arts; and Tsutomu Shimomura, one of the founders of Geocast. For more information, visit the Geocast Web site at http:// www.geocast.com. About Hearst Argyle Hearst-Argyle Television, Inc. owns and/or manages 26 network-affiliated television stations, and owns and/or manages seven radio stations, in geographically diverse U.S. markets. The company's television stations reach about 17.5percent of U.S. TV households, making it one of the two largest non-network owned television station groups in the United States as well as one of the seven largest television groups overall as measured by audience delivered. About Electronic Arts Electronic Arts, headquartered in Redwood City, California, is the world's leading interactive entertainment software company. Founded in 1982, Electronic Arts posted revenues of more than $1.2 billion for fiscal 1999. The company develops, publishes and distributes software worldwide for personal computers and video game systems. Electronic Arts markets its products under seven brand names: Electronic Arts, EA SPORTS, Maxis, ORIGIN, Bullfrog Productions, Westwood Studios and Jane1sÆ Combat Simulations. More information about Electronic Art's products and full text of press releases can be found on the Internet at http://www.ea.com.