Pinnacle to Acquire Steinberg (so apple doesn't scoop more)

[BJ_M]

SECTION: FINANCIAL NEWS

DISTRIBUTION: TO BUSINESS AND TECHNOLOGY EDITORS

LENGTH: 860 words

HEADLINE: Pinnacle Systems Agrees to Acquire Steinberg Media Technologies AG;
Enhanced Audio Capabilities Extends Company's Leadership in Digital Media Solutions

DATELINE: MOUNTAIN VIEW, Calif. and HAMBURG, Germany, Dec. 18

BODY:
-- Pinnacle Systems, Inc. (Nasdaq: PCLE), announced today that it has entered into a definitive agreement to acquire all of the stock of Steinberg Media Technologies AG based in Hamburg, Germany. Steinberg specializes in digital audio software solutions for consumers and professionals. The companies expect to close the transaction in early January 2003 and have agreed on a total purchase price of approximately $24 million, consisting of $8.2 million in cash and $15.8 million of Pinnacle Systems common stock. At closing, Pinnacle Systems will acquire all products, software, and intellectual property rights, along with all other assets and liabilities of the company. Pinnacle will account for this transaction as a purchase in Pinnacle Systems' fiscal Q3, ending March 31, 2003. The Company will host a conference call at 2:00 p.m. (Pacific Time) on December 18, 2002. The call in number is 800-634-1569, no password required.
J. Kim Fennell, President and CEO at Pinnacle Systems said, "We are delighted to welcome Steinberg's customers and employees into the Pinnacle family. Steinberg is a recognized industry leader in digital audio and this transaction significantly broadens Pinnacle's digital media offerings. By adding the talent and technology of Steinberg to our company, we believe we can bring our customers an even stronger solutions portfolio."
"Steinberg is pleased to be joining forces with Pinnacle Systems. Our customers and products will benefit greatly from the combined resources of the two companies and we look forward to bringing audio production expertise to the award-winning Pinnacle Systems' product lines," said Manfred Rurup, President of Steinberg Media Technologies AG. About Steinberg Media Technologies AG
Steinberg Media Technologies AG is known the world over for its professional audio software. The company has been developing, manufacturing and selling software products for professional musicians and producers in the music, video and film industry since 1984. Steinberg products are also enjoying success in the fast-growing consumer market with music creation and other multimedia applications. Steinberg is today one of the world's largest audio software houses.

[djethan]

Thank god for this!

When Apple bought emagic, I wanted to cry! I like macs ok, but after being a PC Logic user for 5 years, I have major dough invested in PC-specific gear and (mostly) plugins and supplemental software. If I was forced to switch it would probably run upwards of US $7000.

Gawd! I'd almost rather use Cubase. Almost .

[BJ_M]

yes -- the people using Shake (10 grand), Silicon Systems Rayz (15k) and Spruce products thought the same thing .. (apple does now sell shake for NT and sgi again) ..

a lot of emagic (logic audio) users are rather upset to say the least,,,

don't switch to cubase just yet ..
but i want to see the next version of nuendo by steinberg though ..

[CubDukat]

Great--now I have two products that will receive piss-poor tech support: Studio DC10plus/S7 and Cubasis VST.

Oh, well, guess Cakewalk Home Studio's looking even better than before...