Press release: 2000-08-14: GigaMedia and Sega.com Asia Ltd to Further Partnership Discussion For Building On-line Gaming Services in Taiwan

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This is an unaltered copy of a press release, for use as a primary source on Sega Retro. Please do not edit the contents below.
Language: English
Original source: The Free Library


TAIPEI, Taiwan and HONG KONG, Aug. 14 /PRNewswire/ --

GigaMedia (Nasdaq: GIGM; http://www.giga.net.tw), a leading broadband Internet access service and content provider in Taiwan, met with Sega.com Asia Ltd (HK Stock Exchange: 1196.hk; http://www.sega.com.hk), an affiliate of Sega.com, Inc. of the U.S. (www.sega.com & www.sega.net), a leading online interactive entertainment company for online console and PC games, to further their discussion of an exclusive partnership to build a co-branded online gaming service in Taiwan. The co-branded online gaming service will include (1) a subscription-based online gaming service and Internet access service through the Sega Dreamcast(TM) console or PC, (2) low-latency high-speed online gaming lobby services similar to those featured on www.sega.net and (3) a localized online web site featuring Sega game summaries, online community services, e-commerce services and other online game content services as featured on www.sega.com and www.sega.net.

Under the proposed partnership, GigaMedia will leverage its established nationwide backbone infrastructure and the 56K-modem-equipped Sega Dreamcast's console, to achieve additional dial-up service revenue for GigaMedia at minimal incremental costs. Sega has sold over 400,000 game consoles in Taiwan to date, and it estimates that the sales of Dreamcast(TM) console will most likely exceed 1.2 million by 2002. GigaMedia will also become Sega's exclusive partner to develop broadband online gaming service, bundling GigaMedia's cable modem broadband access service with Sega's new broadband Ethernet module, which is expected to become commercially available in early 2001. When the new service becomes available, GigaMedia intends to entice dial-up gaming subscribers to switch to the new broadband gaming service with the enhanced online gaming environment.

"GigaMedia and Sega.com are well positioned to enable a new generation of consumers to get online and experience online multi-player games at an exciting, revolutionary new level. This co-operation will provide GigaMedia an attractive alternative device to gain access to the 3.8 million residential households within its service area. The new online broadband platform will help to attract additional local game producers and offer our subscribers additional exciting game application and content, on top of our already rich broadband portal www.gigigaga.com and our popular game channel www.gamegx.com," said CEO Raymond Chang of GigaMedia.

"The Dreamcast has a 128-bit processor, an incredibly realistic 3D engine, and a 56k modem. When we combine all this with a fantastic nationwide backbone and the graphics rich multi-player online games Sega and GigaMedia can deliver an arena of millions of competitor and an experience that is unrivalled by any sport or event," said President and CEO of Sega.com, Inc.

About Sega.com

Sega.com, Inc. is a new online entertainment company whose goal is to become the online destination for gamers. Sega.com integrates SegaNet, set to launch in September 2000, the only high-speed online console gaming network providing Dreamcast users with the ultimate in speed, reliability and content. SegaNet offers gamers the best in 3D multi-player games, chat, community, cheat codes, tournaments and content. SegaNet is also an ISP for Sega Dreamcast and PC users, offering gamers everything they need to know about gaming and other areas of interest that tie in with gaming including music, TV, community, movies, sports and e-commerce.

About GigaMedia

GigaMedia is the first and the leading provider of broadband Internet access services and content through its affiliated cable-based television network infrastructure in Taiwan. With 29 cable system partners, the company has access to more than 3.8 million Taiwan households, or 67% of total households, and 576,000 small- and medium-sized businesses. The company currently offers broadband Internet access at a speed of up to 100 times faster than traditional dial-up. In addition to broadband access services, the Company also offers six interactive Chinese-language multimedia web sites through its Web destination http://www.giga.net.tw. The company has a world- class broadband Internet platform capable of meeting the increasing commerce, community, communication, and content needs of Taiwan Internet users. The company currently has 22 long-term exclusive IP service agreements and 7 non- exclusive IP service agreements with cable system partners nationwide. The company aims to become the leading broadband Internet content and access technology provider in the Asia Pacific Region. Key investors of GigaMedia include Microsoft as well as the Koos Group, a leading Asian business conglomerate with significant operations in the telecom, media/cable, and financial sectors. More information on the company can also be obtained from its web site at http://www.giga.net.tw.

The statements included above and elsewhere in this press release that are not historical in nature are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. GigaMedia cautions readers that forward-looking statements are based on the Company's current expectations and involve a number of risks and uncertainties. Actual results may differ materially from those contained in such forward-looking statements. Information as to those factors that could cause actual results to vary can be found in GigaMedia's Initial Public Offering Registration Statement filed with the United States Securities and Exchange Commission, or Risk Factors section of the Offering Prospectus.
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