SOURCE: NeuLion, Inc.

NeuLion, Inc.

May 19, 2010 18:02 ET

NeuLion Agrees to Acquire IPTV Technology Solutions Company TransVideo International Ltd.

PLAINVIEW, NY--(Marketwire - May 19, 2010) -  NeuLion, Inc. (TSX: NLN) (the "Company"), an end-to-end IPTV service provider of live and on-demand sports, international and variety programming over the Internet, announced today that it has reached an agreement in principle to acquire the operating interests of TransVideo International Ltd. ("TransVideo"), a manufacturer of set top boxes utilized by the Company, in exchange for 22,000,802 Company common shares. TransVideo shareholders will own approximately 15% of the Company, on a fully diluted basis, upon the consummation of the transaction. TransVideo's passive investment in KyLinTV, Inc., an IPTV company that is controlled by the Chairman of the Board of Directors of the Company, will not be transferred as part of the transaction.

The proposed transaction, if consummated, will provide the Company with greater control over the future development of TransVideo's set top boxes. TransVideo's existing relationships in China will also afford the Company with substantial opportunities for marketing its IPTV services.

TransVideo is controlled by AvantaLion LLC, a company controlled by Charles B. Wang, the Chairman of the Board of Directors of the Company. If the proposed transaction is consummated, AvantaLion will receive approximately 17.8 million Company common shares, which will result in Mr. Wang controlling approximately 40 million Company common shares (inclusive of 10 million warrants) of the approximately 139 million Company common shares (not including such 10 million warrants) that will be outstanding after consummation.

The agreement in principle was negotiated by an independent committee of the Board of Directors of the Company, after commissioning an independent valuation and obtaining independent legal counsel. The independent committee's recommendation to proceed with the transaction was unanimously approved by the full Board of Directors.

Based on the Company's closing price on May 19, 2010 of CAD$0.53, the transaction is valued at CAD$11.7 million.

The closing of the transaction remains subject to the negotiation and execution of a definitive agreement and regulatory and shareholder approvals, which are anticipated to occur during summer 2010.

About NeuLion
Based in Plainview, NY, Sanford, Florida and Toronto, Ontario, NeuLion (TSX: NLN) works with content partners to develop end-to-end solutions for multimedia IPTV services. The NeuLion IPTV Platform encodes, delivers, stores and manages an unlimited range of multimedia content and the Operational Support System (OSS) maintains all billing and customer support services. Content partners are responsible for content aggregation and the sales and marketing for the individual IPTV service. The Company ranks as a world leader in customer/partner relationships with sports, international and specialty television content partners including, in sports, the NHL, the NFL, NCAA Division I schools and conferences and, in respect to international and specialty television aggregators and networks, KyLinTV (Chinese), ABS-CBN (Filipino), Talfazat and Talfazat-ART (Arabic), TV-Desi (South Asian) and Sky Angel (Christian). Customer/partner content can be viewed by way of the Internet on PCs and mobile devices and on the television through the Company's IPTV set top box.

Forward-Looking Statements
Certain statements herein are forward-looking statements and represent NeuLion's current intentions in respect of future activities. These statements, in addressing future events and conditions, involve inherent risks and uncertainties. Forward-looking statements can be identified by the use of the words "will," "expect," "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. Forward-looking statements involve significant risk, uncertainties and assumptions. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including: the inability of TransVideo and the Company to consummate the transaction on the proposed terms or at all; the companies' inability to integrate their businesses or to realize expected synergies, if the transaction is consummated; general economic and market segment conditions; competitor activity; product capability and acceptance rates; technology changes; and international risk and currency exchange. A more detailed assessment of the risks that could cause actual results to materially differ from current expectations is contained in the Company's most recent annual MD&A filed on www.sedar.com as well as in the "Risk Factors" section of the Company's most recent annual report on Form 10-K filed on www.sedar.com and available on www.sec.gov.

Contact Information

  • NeuLion Press Contact:
    Jennifer Powalski
    Phone: 516-622-8334
    Email: Email Contact

    NeuLion Investor Relations Contact:
    G. Scott Paterson
    Phone: 416-368-6464
    Email: Email Contact