General Magic Spins Out Software Modem Technology Group to Newly Formed AltoCom, Inc.
SUNNYVALE, Calif. — February 26, 1997 — In accordance with its recent announcement articulating its strategic plan to offer an Internet-based network service solution, General Magic, Inc. (NASDAQ:GMGC) today announced that it has spun out its software modem (SoftModem) technology group to the newly formed AltoCom, Inc.
AltoCom will continue to market the SoftModem technology originally developed and marketed by General Magic, and will develop next-generation signal processing software. General Magic will retain an interest in the new company, a share of the revenue stream from existing products, as well as certain non-exclusive rights to new technology to be developed by AltoCom.
AltoCom's existing SoftModem technology provides electronics and computer manufacturers the ability to include modem and fax functionality without the expense of separate chip sets. Versions of the software exist for V.32 (14.4 kbps modem) and V.34 (33.6 kbps modem) implementations.
"Our focus is squarely on developing our network service solution for small business professionals," said Steve Markman, chairman, CEO and president of General Magic. "This action was taken to enable us to effectively implement our strategic plan, maintain an ongoing revenue stream from the existing software modem technology, and continue the rigorous, corporate-wide expense controls we have set in place. At the same time, it provides the opportunity for AltoCom to compete and thrive in the market for advanced signal processing products."
AltoCom, based in Mountain View, Calif., is staffed by former General Magic employees responsible for development, marketing, sales and support of the SoftModem product line, and is headed by Zarko Draganic, the new company's president and CEO. Draganic had been with General Magic since 1991, most recently as head of its communications engineering team. Prior to joining General Magic, he worked at Apple Computer and Northern Telecom, designing communications products.
"The establishment of AltoCom allows us to provide leading communications products as an independent company with a focused strategy and dedicated support staff," said Draganic. "We look forward to expanding our product line as we continue to provide close support to our customers."
The two companies also agreed to cooperate in providing support for General Magic's existing SoftModem customers, which include Philips Semiconductor. They will also support those Magic Cap licensees who incorporate the technology into their products.
AltoCom
AltoCom, Inc. was founded in 1997 and provides leading signal processing technology for computer and electronic device manufacturers. AltoCom is headquartered in Mountain View, Calif. For more information on AltoCom, visit the company's Web site at http://www.altocom.com .
General Magic
General Magic, Inc. was founded in 1990 and develops products and services that allow people to easily communicate with each other and obtain network-based information from wherever they are, using any type of communications device. The company does its magic out of its Sunnyvale, Calif., headquarters. For more information on General Magic and its products, visit the company's Web site at http://www.genmagic.com .
NOTE TO EDITORS: General Magic and Magic Cap are registered trademarks of General Magic, Inc. General Magic acknowledges the rights of the trademark owners for all trademarks referred to herein.
CONTACT:
For General Magic Press Inquiries:
Fleishman-Hillard Inc.
Marilyn Kilcrease, 415/356-1031
[email protected]
or
For General Magic Investor Inquiries:
Morgen-Walke Associates
Lisa Laukkanen, 415/439-4507
[email protected]
http://www.genmagic.com/About/press.html
or
AltoCom Inquiries:
Tom Hershenson, 415/824-6572
[email protected]