Quadrant International Receives Equity Investment Placed by Lehman Brothers; Leading Global Investment Bank Cites QI's Innovations, Leadership, Intellectual Capital

Business Wire, July 14, 1998

MALVERN, Penn.--(BUSINESS WIRE)--July 14, 1998--Quadrant International (QI), an expert provider of software and hardware digital video solutions, announced that it received a venture capital investment of more than $18 million in a successful round of financing placed by Lehman Brothers. The agent arranged investments from top tier domestic and international private equity firms on the strength of QI's track record in the digital video and multimedia industry, technological leadership, and multinational network of offices.

"Quadrant International has been a pioneer in developing digital video solutions," said Brian Wade, global head of private placements at Lehman Brothers. "QI's experienced management and engineering staff have placed the company in an excellent position to dominate the digital video market at a time of unprecedented growth in the industry."

QI currently delivers a line of cutting-edge, digital video disc (DVD) software and hardware products, and is developing digital television (DTV), high-definition television (HDTV), and satellite broadcast standards-based solutions. All of these are designed around QI's unique object-oriented modular software architecture, which enables manufacturers of PCs and DVD players to deliver product to market quickly and cost-effectively by cutting the design and support time needed to integrate QI solutions into their products. Combining the best on-screen video and excellent audio quality with the best overall system performance and integration, QI provides flexible and cost-effective solutions to a spectrum of partners in the PC-OEM and semiconductor markets.

"This venture capital placement provides us with the resources to continue developing products and technologies that set the standard for performance in the digital video industry," stated Leonard Sharp, vice president of sales and marketing at Quadrant International. "We will be able to move forward even more aggressively producing and marketing powerful, cost-effective, easy-to-integrate digital video solutions."

ABOUT LEHMAN BOTHERS

Lehman Brothers is a global investment bank serving the financial needs of corporations, institutions, governments and high-net-worth investors worldwide. Founded in 1850, Lehman Brothers has built a global reputation for providing state-of-the-art research, distribution, trading and financing services. The eight-member private equity group is dedicated to raising capital for emerging growth companies on a global basis. Lehman Brothers placed over $2.3 billion of private equity with over 75 investors in 1997. For more information on Lehman Brothers, visit its World Wide Web site at http://www.lehman.com.

ABOUT QUADRANT INTERNATIONAL

Quadrant International (QI) is an expert provider of digital video and audio solutions to manufacturers of PCs, consumer electronics appliances and convergence devices. QI addresses the convergence of business and consumer markets through a full line of software and hardware products designed around a unique, modular, software architecture that provides a consistent look and feel across technology platforms. Combining the best on-screen quality with the best overall system performance and integration, QI provides flexible and cost-effective solutions to a spectrum of partners in the PC-OEM and semiconductor markets, including Dell Computer, Packard Bell/NEC, ATI Technologies, C-Cube, and STMicroelectronics. Founded in 1994, QI is headquartered near Philadelphia, Pa. and has offices in Silicon Valley, Calif.; Seattle, Wash.; Germany; and Japan.

CONTACT: McGrath/Power Public Relations

Scott VanSickle/Louie Yan, 408/727-0351

Scott_VanSickle@mcgrathpowerpr.com

Louie_Yan@mcgrathpowerpr.com