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Burst.com, Inc. Completes New Equity Financing
SANTA ROSA, CA -- (MARKET WIRE) -- 07/22/2004 -- Burst.com, Inc. (OTC: BRST),
a provider of patented media delivery software, today announced that the
company has successfully completed a new round of private financing,
raising approximately $780,000. According to Co-Founder and CEO Richard
Lang, the round was led by New York institutional investment funds Kellogg
Capital Group, LLC and Millennium Partners LP, plus a small number of
private accredited investors. The company sold just over 1 million shares
of its common stock at a price of $.75/share. Every 2 shares were
accompanied by a warrant to purchase one share of common stock at a price
of $1.50.
According to Lang, the funds will provide working capital to support
the company's licensing activities and general operations while it pursues
its litigation against Microsoft Corporation. The company filed suit in
June of 2002, accusing Microsoft of anti-trust violations, patent
infringement and misappropriation of Burst's trade secrets. The company
claims that Microsoft has incorporated Burst's technology into Microsoft's
Windows Media Player 9 product release, initially introduced as
"Corona." The complaint also alleges that Microsoft excluded
Burst from the market through various anticompetitive practices.
The company is represented in its litigation against Microsoft by a
legal team consisting of Hosie Frost Large & McArthur, and Carr &
Ferrell LLP.
"We are very encouraged by the investor support we are
receiving," said Lang. "This new financing should enable us to
sustain operations at least until summer of 2006, without the need for
additional financing or licensing revenue. This would take us well beyond
our anticipated trial date in the first half of 2005." Lang also said
that the company plans to pursue patent licensing discussions with
companies other than Microsoft in the coming months.
A web link to the complete complaint as well as articles and other
information regarding Burst's litigation against Microsoft can be found
at: http://www.burst.com.
About Burst.com:
Burst.com, headquartered in Santa Rosa, California, is the developer of
Faster-Than-Real-Time™ and Burst-Enabled™ video and audio delivery
software. Burst.com's Burstware® provides high-quality delivery of
full-motion video and CD-quality audio over IP-based networks. The
company, established in 1990, has built an international patent portfolio
covering bursting, video delivery scheduling and Rapid-casting. Burstware®,
Faster-Than-Real-Time™ and Burst-Enabled™ are trademarks of Burst.com.
More information about Burst.com is available at www.burst.com.
This Release is a forward-looking statement for the purposes of the
safe harbor provisions under the Private Securities Litigation Reform Act
of 1995. Although we believe that the expectations expressed herein
regarding our ability to use the funds from this financing to sustain
operations are based on reasonable assumptions, these forward-looking
statements are subject to numerous uncertainties and risks and actual
results and developments could differ from these expectations. Factors
which could affect our operations include our ability to determine our
budgetary needs and a possible need for increased funding if we decided to
step-up our operations. We are not responsible for updating any such
forward-looking statements.
For Further Information Contact:
Richard Lang
707-541-3870
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