DG FASTCHANNEL™ COMPLETES
ACQUISITION OF PATHFIRE, INC.
Acquisition Further Diversifies DG FastChannel’s
Client Base and Revenues Combined Entity to
Realize Operational Synergies
DALLAS, TX (June 5, 2007) –
DG FastChannel, Inc. (NASDAQ: DGIT), the leading
provider of digital media services to the advertising
and broadcast industries, announced today that
it has completed its previously announced acquisition
of privately-held Pathfire, Inc. DG FastChannel
financed the transaction with cash on hand and
through borrowings under its existing credit
facility.
Pathfire distributes third-party
long-form content, primarily news and syndicated
programming, through a proprietary server-based
network via satellite and Internet channels.
Pathfire is the primary distribution method
for the majority of syndicated programming,
including shows such as “Jeopardy,”
“Friends,” and “Wheel of Fortune.”
In addition, ABC and CNN rely on the Pathfire
network to distribute thousands of news stories
to hundreds of television affiliates throughout
the United States. Pathfire technology is installed
in approximately 1,400 U.S. television stations.
Pathfire’s digital media
platform supports a suite of applications tailored
to the needs of news, syndication, video news
feeds and broadcasters. Pathfire software applications
reside on over 10,000 desktops in virtually
every U.S. television station. Like DG FastChannel,
Pathfire delivers integrated digital solutions
that automate media distribution and workflow
management solutions enabling both content providers
and broadcasters to maximize efficiency while
reducing costs. The combined DG FastChannel
and Pathfire networks provide a one-stop source
for all video forms including ads, news, syndicated
programming, movies and video news releases
and electronic press kits. Scott K. Ginsburg,
Chairman and CEO of DG FastChannel, and Omar
Choucair, Chief Financial Officer of DG FastChannel
will lead the combined operations.
About DG FastChannel, Inc.
DG FastChannel delivers the standard
in digital media services to the advertising,
broadcast and publishing industries. DG FastChannel’s
innovative technology solutions help advertisers
and agencies work faster, smarter and more competitively.
Offering both the ubiquitous reach
of multicast satellite transmissions and the
targeted capabilities of Internet technologies,
DG FastChannel has deployed a suite of business
intelligence and asset management tools and
creative and production resources designed specifically
for the advertising community. DG FastChannel’s
next generation distribution platform includes
high definition electronic video distribution
capabilities that streamline the advertising
process from point of ingest via digital distribution
to its edge-servers located at TV, cable and
network broadcasters. DG FastChannel’s
online media distribution network and suite
of products and services are relied upon by
more than 5,000 advertisers and agencies, and
over 21,000 online radio, television, cable,
network and print publishing destinations. DG
FastChannel recently agreed to acquire the advertising
distribution operations of Point.360 (NASDAQ:
PTSX) with the transaction expected to be completed
during the third quarter of 2007. For more information
visit www.dgfastchannel.com.
About Pathfire (www.pathfire.com)
Pathfire, headquartered in Atlanta,
is the leading provider of digital content distribution
and management solutions for the broadcast,
media and entertainment industries, supplying
innovative digital solutions, from distribution
to air, for broadcasters, news organizations,
television networks, Hollywood studios and other
media companies. Pathfire's Digital Media Gateway™
(DMG) is an advanced digital IP store-and-forward
platform, delivering news stories, syndicated
programming, advertising spots, and video news
releases to more than 1,400 broadcasters. Pathfire
DMG and the associated workflow tools are available
on over 10,000 PC desktops throughout the world.
Safe Harbor for Forward-Looking
Statements
Statements in this Press Release
may contain certain forward-looking statements
relating to DG FastChannel and its expectations
for the benefits of the Pathfire acquisition,
its relationship with Viewpoint Corporation
and the proposed acquisition of the Point.360
advertising distribution operations. All statements
included in this Press Release concerning activities,
events or developments that DG FastChannel expects,
believes or anticipates will or may occur in
the future are forward-looking statements. Actual
results could differ materially from the results
discussed in the forward-looking statements.
Forward-looking statements are based on current
expectations and projections about future events
and involve known and unknown risks, uncertainties
and other factors that may cause actual results
and performance to be materially different from
any future results or performance expressed
or implied by forward-looking statements, including
the following: the risk that the Point.360 acquisition
will not close because of a failure to satisfy
one or more of the closing conditions; the risk
that DG FastChannel’s business will have
been adversely impacted during the pendency
of the Point.360 acquisition; the risk that
either or both of Pathfire’s and Point.360’s
respective operations will not be integrated
successfully; and the risk that the expected
cost savings and other synergies from either
or both of the Pathfire and Point.360 acquisitions
may not be fully realized, realized at all or
take longer to realize than anticipated. Additional
information on these and other risks, uncertainties
and factors is included in DG FastChannel’s
Annual Report on Form 10-K, Quarterly Reports
on Form 10-Q, Current Reports on Form 8-K and
other documents filed with the SEC.
For more information contact:
Omar Choucair
Chief Financial Officer
DG FastChannel, Inc.
972/581-2000
