CONTACT:
Jeffrey B. Davis
SmallCaps Online LLC
(212) 554-4158 (phone)
(212) 554-4058 (fax)
info@SmallCapsOnline.com
SmallCaps Online LLC (Formerly SmallCaps Online LLC) Comments on ACTV Joint Venture with General Instrument and Reiterates BUY Recommendation
Visit SmallCaps Online’s Web Site at www.SmallCapsOnline.com for Detailed Report
New York, NY, June 17, 1999 — SmallCaps Online LLC (formerly SmallCaps Online LLC) commented today on the announcement by ACTV (Nasdaq: IATV) and General Instrument Corporation (NYSE: GIC) concerning the introduction of targeted advertising and reiterated its BUY recommendation on the current share price weakness. The full text of this report can be accessed at SmallCaps Online’s web site, at www.SmallCapsOnline.com.
Excerpts from the report follow:
At this week’s National Cable Television Association (NCTA) convention in Chicago, ACTV and General Instrument Corporation ("GI") announced that they will be introducing a comprehensive, end-to-end solution for delivering addressable, targeted advertising via digital cable, satellite and broadcast television. This announcement was featured on the front page of Extra Extra Daily last Monday, and perceived as the groundbreaking news event at the convention. While the details of the joint venture have not been finalized, we believe that this announcement is significant from two perspectives: the opening of a very large new market of addressable, targeted advertising, and the ability for ACTV’s technology to solve the technological hurdle of allowing local ad insertion into digital cable signals. We believe ACTV’s "Individualized Advertising" program has the potential to be even larger than its Individualized Television sports programming product, as it cuts across all programming genres. We reiterate our BUY rating, and recommend investors buy on current weakness in the share price.
ACTV’s proprietary "Individualized Advertising" software and programming capabilities, together will GI’s digital interactive system and set-top boxes, will enable one of the most promising aspects of digital television — the ability to deliver highly targeted advertising, providing improved results and accountability for every advertising dollar, while enhancing the viewer experience by eliminating non-relevant advertising clutter. The joint solution also offers the ability to do e-commerce ("in the moment" impulse purchasing) and interactive advertising such as electronic couponing. As commented upon by leading ad-agency executives at the convention, this type of targeted audience delivery system is precisely what advertisers and marketers are looking for to enhance advertising efficiency and impact. The benefits to the industry include:
We believe this announcement is very significant in that it opens up a potentially large new market for ACTV, both at the parent level and within the new ACTV/GI joint venture. Cable television advertising is roughly a $10 billion business, with over 80 networks offering advertising to viewers, and Individualized Advertising will uniquely position ACTV to participate in the large local advertising portion of this market as well.
###
SmallCaps Online LLC is a registered investment advisor focused on identifying emerging growth companies in the healthcare and information technology sectors that offer compelling investment opportunities over the long term. By providing comprehensive financial services, including corporate finance, M&A advisory, strategic partnering and communications consulting, the company positions itself to provide a fully integrated package of value-added services to emerging growth companies.
###
The information in this press release has been obtained from sources that SmallCaps Online LLC believes to be reliable, but the Company does not guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation by SmallCaps Online LLC for the purchase or sale of any securities. SmallCaps Online LLC and/or any of its affiliates has performed investment banking, consulting or other services for XGNT and may solicit investment banking, consulting or other business from, any company mentioned in this release. SmallCaps Online LLC or any of its affiliates or persons associated with SmallCaps Online LLC may at anytime be long or short any of the securities referred to herein and may make purchases or sales thereof while the Company’s reports are in circulation or posted on the SmallCaps Online LLC web site at www.SmallCapsOnline.com. This material, or any portion thereof, may not be reproduced without prior permission from SmallCaps Online LLC. SmallCaps Online LLC is not responsible for the contents of this document that is intended for electronic transmission and could be thus subjected to tampering or alteration. Copyright © 1999 by SmallCaps Online LLC. All rights reserved.