Gemstar Acquires EBook Device Companies

Posted on January 19, 2000

International Group Ltd. has announced its plan to enter the electronic-book business through the acquisition of eBook companies, NuvoMedia Inc. of Mountain View, Calif., maker of the Rocket eBook, and SoftBook Press Inc. of Menlo Park, Calif., maker of the SoftBook Reader. Both acquisitions are stock-for-stock transactions and closed last week. Gemstar plans to launch a massive consumer-awareness campaign later this year for the introduction of NuvoMedia's and SoftBook Press' new products, and for establishing electronic reading devices as a staple consumer product.

"Gemstar's goal has always been to make technology consumer-friendly. We are excited to offer consumers yet another convenience associated with the latest technology and information revolution," said Henry C. Yuen, chairman and chief executive officer of Gemstar.

"Next to watching television, reading is America's most favorite pastime. We believe that Gemstar, NuvoMedia and SoftBook collectively will be in a good position to provide the best technology, broadest distribution and the most-consumer-friendly devices to consumers for enhancing their reading experience and, hence, the enjoyment of their leisure time. "We intend to work hard to bring forward the time frame predicted by Steve Levy in his Jan. 4, 2000, Newsweek article, entitled `It's time to turn the last page,' that within 20 years, 90 percent of reading materials will be distributed on electronic media."

NuvoMedia and SoftBook Press currently have content-distribution agreements in place with major publishers in the United States, including Simon and Schuster, Random House, HarperCollins, St. Martin's Press, McGraw-Hill, MacMillan Publishing, Doubleday, Ballantine, Fireside and many others. NuvoMedia and SoftBook Press also have relationships with many leading U.S. newspaper and periodical publishers, including Bloomberg News, Time, Newsweek, Fortune, Money, New York Times, The Wall Street Journal Interactive Edition, and Washington Post.

Gemstar develops, markets and licenses proprietary technologies and systems aimed at making technology user-friendly for consumers. Gemstar is also a leading provider of electronic program-guide services, which allow a user to view a television program guide on-screen, obtain details about a show, sort shows by themes or categories, and select shows for tuning or recording, through a remote control.