Business Services Industry
Amedia Networks Announces A New IPTV Home Gateway Licensing Agreement With Motorola
Business Wire, June 12, 2007
EATONTOWN, N.J. -- Amedia Networks, Inc. (OTC BB: AANI; AANIE), a provider of next generation media gateways to distribute and manage ultra-broadband triple-play services in the home, today announced that it has completed a licensing agreement with Motorola, Inc. (NYSE: MOT), a worldwide leader in wireless and broadband communications, for the jointly developed MIPX home gateway platform. Under this agreement, which is intended to replace the Strategic Alliance Agreement of April 2006, Motorola will assume all engineering, manufacturing, and support duties for the family of three IP Home gateways, and pay Amedia Networks a production fee of $5.00 per unit of the gateway product, including an advance of $200,000 for the first 40,000 units to be manufactured. Separately, Motorola has also committed to paying Amedia Networks an additional $333,333 for a combination of remaining deliverables from the companies' original strategic alliance agreement and for specific transition deliverables under the new licensing agreement, of which $250,000 has been received.
"We are very pleased about the terms of this licensing agreement with Motorola, which generates immediate and ongoing revenue for Amedia without additional investments in a capital intensive manufacturing effort - and for the fact that our relationship with a leading global industry force remains strong," said Frank Galuppo, Amedia Networks President, CEO, and Director. "It is truly a win-win for both companies, as Motorola can leverage its extensive supply chain in the manufacturing of the MIPX line of products, while Amedia can continue to concentrate on its strength of innovating and developing software for next-generation home networking and residential gateways."
Jointly developed by Amedia Networks and Motorola, the MIPX gateway was originally designed to enhance data, IPTV, High Definition TV, and Digital Video Recorder capabilities using Motorola's proprietary Multi-Service Access Platform - offering Motorola customers a seamless migration to an open third-party IPTV architecture.
About Amedia Networks
Amedia Networks, Inc. (OTC BB: AANI) provides next generation residential media gateways to distribute and manage high-quality voice, high-definition video, and high-speed data services throughout the networked home. The Amedia residential gateway offers a single, compact, configurable device with the collective functionality of a modem, wireless access point, router, VoIP adapter, and family firewall - all in one. In addition, it features external media storage and a built-in operating system for carriers to continuously develop and deliver new, ultra-broadband applications to the home. The company is led by an executive team with a long and proven history in the voice, data, and telecom industries, and its core technologies have been co-developed by Lucent Technologies, Inc.'s renowned Bell Laboratories unit. For more information, visit www.amedia.com.
All company names, brand names, and product names herein are trademarks of their respective holder(s).
This press release may contain "forward-looking" statements as that term is defined in the Private Securities Litigation Reform Act of 1995. A number of factors could cause Amedia's actual results to differ from anticipated results expressed in such forward-looking statements. Such factors are addressed in Amedia's filings with the Securities and Exchange Commission (available at www.sec.gov) and include, but are not limited to, the success and market acceptance of Amedia's triple play solution, the sufficiency of cash reserves to meet operating and other requirements, the relatively fast pace of obsolescence in the broadband communications equipment market, and the competitive environment in the economy generally and in the telecommunications specifically. Amedia assumes no obligation to update any forward-looking statements.
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