SAN DIEGO--(BUSINESS WIRE)--April 4, 2002--Path 1 Network Technologies Inc. (OTCBB:PNWK) (Frankfurt:PNT) today announced that it has sold Sistolic, its Romanian-based silicon systems business unit, to the founder of Metar ADC (a division of Metar SRL), Michael Florea.
Path 1 acquired the assets of Metar ADC in October 2000 and named the business Sistolic. Florea became a Path 1 officer at that time.
The transaction, completed on April 3rd, did not involve a cash payment to Path 1, but did include the cancellation of the remaining note due Metar SRL in the amount of US$850,000, the removal of a potential obligation of US$4 million stipulated in Florea's original employment agreement, the release of all Sistolic employees and the near-term termination of 300,000 Path 1 stock options held by Florea and the 27 other Sistolic employees.
Path 1 will retain a royalty-free, non-exclusive perpetual license, for internal use, to all intellectual property (IP) that has been developed at Sistolic through the date of the transaction. The license also extends to the sale of IP to the extent incorporated in other Path 1 products.
The purpose of the disposition was to reduce Path 1's quarterly operating expenses. Sistolic employees, based in Bucharest, Romania, had represented over one-half of Path 1's total employee headcount.
"This agreement allows Path 1 to focus on its video product offerings while lowering the Company's overall expenses and creating less dilution for our investors," stated Path 1 CEO Frederick Cary. "Our limited resources did not permit us to maximize Sistolic's potential or to continue to fund its ongoing operating costs."
About Path 1 Network Technologies Inc.
Path 1 Network Technologies Inc. (OTCBB:PNWK) (Frankfurt:PNT) is the industry's most innovative and successfully trial-tested leader in broadcast quality video over IP technology. From the delivery and distribution of broadcast materials to Video On Demand, Path 1's video infrastructure platforms allow high quality transmissions of point-to-point and multiplexed data over legacy IP systems. Patented technology and unique know-how enable stable and error-free transport of real time video, including broadcast and entertainment content exchanges. Path 1's capabilities have appeal to carrier, broadcast, networking and entertainment companies as well as enterprise and government markets. For additional information please visit www.path1.net or call 877/ONE-PATH (663-7284).
SAFE HARBOR STATEMENT. This news release contains "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that Path 1 may be unable to obtain necessary financing to continue operations and development. Path 1 may be unable to find suitable licensees and strategic allies on suitable terms, and other risks identified in Path 1's annual report on Form 10-K and other filings with the SEC. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof and Path 1 undertakes no obligation to update such statements.
Path 1 Network Technologies Inc., San Diego
Richard B. Slansky, 858/450-4220 ext. 118
Porter, LeVay & Rose
Christian W. Pflaumer, 212/564-1700