News release |
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NOVEMBER 7, 2002 - 13:02 EST
Zi Corporation Completes Sale of Magic Lantern to JKC Group
CALGARY, ALBERTA--Zi Corporation (Nasdaq: ZICA) (TSX: ZIC), a leading provider of intelligent interface solutions, announced the closing today of the acquisition by JKC Group, Inc. (AMEX: JKC), a distributor and licensor, of Magic Lantern Communications Ltd. and subsidiaries ("Magic Lantern") from Zi. The closing was held immediately following approval of the transaction by JKC's shareholders at a special meeting. As part of the transaction, JKC changed its corporate name to Magic Lantern Group, Inc. Its AMEX trading symbol will change to GML, effective at the opening of trading on November 8, 2002.
The transaction was completed through the sale by Zi of all of the outstanding stock of Magic Vision Media Inc., the parent holding company of Magic Lantern. At closing, Zi received a three-year promissory note of Magic Lantern Group, Inc. ("GML") for US$3.0 million and a 45 percent equity interest in GML. Additional stock and cash consideration or offsets up to US$1.0 million against the note are provided under earn-out and claw-back arrangements based on Magic Lantern's post-acquisition operating results.
Michael Lobsinger, Chairman and Chief Executive Officer of Zi, commented, "Our sale of Magic Lantern marks a significant step forward in our plan to enhance the value of both Magic Lantern and our core technology business. It makes good strategic sense for us to build our Magic Lantern business as a principal shareholder with three board designees in a separate public company that will concentrate on expanding the Magic Lantern business. The transaction will allow Zi to retain a meaningful equity position and strategic role while relinquishing operational and financial responsibility, allowing us to increase our focus on Zi technology. By concentrating on our industry-leading intuitive text input solutions, eZiText™ and eZiTap™, and recasting our role in Magic Lantern through our interest in GML, we hope to achieve the best of both worlds, maximizing our opportunity to return enhanced value to our shareholders."
Richard Siskind, President of GML, said, "Our acquisition of Magic Lantern was approved by more than 90 percent of our
shareholders. We are pleased by the vote of confidence and enthusiastic about our opportunities to expand Magic Lantern's presence in e-learning markets. The transaction provides us with a wide range of e-learning resources, including internet-enabled technologies for delivering educational services on-demand to students, teachers and parents not only in Canada, where Magic Lantern already has a very significant presence, but also in the U.S. and other markets. We are equally pleased to add Howard Balloch, Michael R. Mackenzie and Michael Lobsinger to our board and to augment our management team with Magic Lantern's talented executives."
About Magic Lantern Group Inc.
Magic Lantern Group, Inc., formerly named JKC Group Inc., was historically engaged primarily as a distributor of apparel. The company has significant experience in licensing and distribution. It previously announced its plan to contract apparel operations and focus its resources on expanding these two service lines. To accomplish the first phase of its planned business redirection, the company completed an equity infusion and related board reconstitution in April 2002. Its common stock is listed on the American Stock Exchange (JKC and commencing November 8, 2002, GML).
About Zi Corporation
Zi Corporation (www.zicorp.com) is a market-driven technology company delivering intelligent interface solutions to enhance the user experience of wireless and consumer technologies. The company's core technology products, eZiTap and eZiText, connect people to short messaging, e-mail, e-commerce, Web browsing and similar applications in almost any written language. eZiNet is a new network-based platform that enables handset manufacturers and network operators to provide users with access to media rich content and information stored on a network, despite the memory restrictions of the mobile device. Zi supports its strategic partners and customers from offices in Asia, Europe and North America. Zi Corporation is listed on the Nasdaq National Market (ZICA) and the Toronto Stock Exchange (ZIC).
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For further information please contact:
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Zi Corporation - Investor Inquiries Dale Kearns Chief Financial Officer (403) 233-8875 Email: investor@zicorp.com |
Allen & Caron Inc - Investor Inquiries Jill Bertotti (949) 474-4300 Email: jill@allencaron.com |
Allen & Caron Inc - Media Inquiries Len Hall Business/Financial media (949) 474-4300 Email: len@allencaron.com |