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No. 0491
Nov. 29, 1999
FOR IMMEDIATE RELEASE
Matthew Nicholson
PR Dept.
Mitsubishi Electric Corporation
03-3218-2346
Matthew.Nicholson@hq.melco.co.jp
MITSUBISHI ELECTRIC ESTABLISHES STRATEGIC
CAPITAL ALLIANCE WITH TERALOGIC
Company to Strengthen Rapidly Expanding Digital Broadcast Business
Tokyo, November 29, 1999--In order to strengthen its digital
TV broadcasting business, Mitsubishi Electric Corporation has undertaken
a strategic capital alliance with TeraLogic (head office: California),
an American company leading in the development of chip sets for
digital TV broadcast equipment. Mitsubishi Electric will invest
US$ 5 million at the end of November.
Mitsubishi Electric's Aims and Future Business Strategy
Mitsubishi Electric, as part of an opportunity to participate in
the testing of domestic ground station digital TV broadcasting,
will actively expand its digital TV broadcasting business and plans
to pursue outgoing systems, transmitters/repeaters, and receivers.
Viewing ground station/BS/CS and the digitalization of CATV, the
company intends to expand the business of fusing broadcasting and
telecommunications and respond to the future home network age. For
these reasons, the company has established a strategic capital alliance
with TeraLogic, a company leading the way in digital image processing
technology. Not only limited to Japan, the company will enter the
North American and European market, and actively pursue the receiver
market while strengthening its relationship with TeraLogic.
Concerning future product development, starting from the year 2000,
the company plans to offer receivers (set top boxes) that incorporate
LSIs and are compatible with ground stations, BS and CS step by
step.
Background to Strategic Capital Alliance
Digital TV broadcasting in Japan will begin with BS broadcasting
in the year 2000, and will proceed to ground stations in 2003. Ground
station broadcasting of digital TV began in the US and Britain in
1998, and is scheduled to begin in Europe and Australia by 2003.
Thus, the market for broadcast equipment receivers is expected to
take off quickly.
From 1998, Mitsubishi Electric has been actively participating
in multimedia testing that uses digital broadcasting and is a leader
in the US home projection TV market. In September 1998, the company
went ahead of competitors by making investments in the digital broadcasting
devices market and is currently strengthening its position in that
market.
Profile of TeraLogic
| Founded: |
May 1996 |
| Capital: |
$50 million (as of October 31, 1999) |
| CEO: |
Pen H. Ang |
| President: |
Jon S. Castor |
| Location: |
(Head Office) Mountain View, California, USA
(Local company in Japan) Tokyo |
| Main stockholders: |
The Mayfield Fund, Levensohn Capital Management, Citigroup,
Vertex Management |
| Ownership after investment: |
4.3% |
| Business activities: |
A "fabrication-less manufacturer" conducting development and
marketing of semiconductors for digital TV, software, and related
equipment. Due to its technology for displaying images of digital
TV on PCs, TeraLogic is affiliated with Microsoft, NDS, Philips,
and other companies. The company also has an excellent reputation
in the marketplace. |
| Employees: |
about 90 (as of October 31, 1999) |
# # #
About Mitsubishi Electric Corporation
With more than 75 years of experience in providing reliable, high-quality
products to both corporate clients and general consumers all over
the world, Mitsubishi Electric Corporation is a recognized world
leader in the manufacture, marketing and sales of electrical and
electronic equipment used in information processing and communications,
space development and satellite communications, consumer electronics,
industrial technology, energy, transportation and construction.
With operations in 34 countries, Mitsubishi Electric Corporation
recorded consolidated group sales of over US$31 billion in the year
ended March 31, 1999. Additional information on Mitsubishi Electric
Corporation is available at global.mitsubishielectric.com.
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