26th Sep 2005 14:27
SERVICEPOWER TECHNOLOGIES PLC ("SERVICEPOWER" OR THE "Company") New Contract Update ServicePower, the recognised market leader in artificial intelligence based,field service scheduling solutions and computer services, today announced anupdate on the rollout of the US Digital TV contract (USDTV).The Company reported, in September 2004, the roll out of the USDTV serviceacross the US had stalled due to a delay to the second-round funding. TheCompany is pleased to announce that a $26 million second round funding has nowbeen completed and the USDTV service will be re-launched in September 2005. Thefunding agreement with an investment group that includes Fox TelevisionStations, Hearst-Argyle McGraw-Hill Broadcasting and others, provides fundingand strategic support to expand its low cost, all-digital, "over-the-air"alternative to cable.ServicePower will continue to provide exclusive installation and other servicesto USDTV in the existing three markets in Salt Lake City, Albuquerque and LasVegas. In November USDTV plans to launch in Dallas followed by a further 8cities by the end of 2006. Plans are in place, but not yet funded to, torollout to a further 22 cities in the years 2007-2010 with a target to achievea total 8.1 million subscribers. If this rollout plan is achieved the Directorsexpect ServicePower to invoice more than ‚£2 million revenue in 2006 andsubstantially more each year thereafter.Note: ServicePower refers to the company and SERVICEPower refers to theproduct.September 26th 2005----------------------------------------------------------------------------------------------------------Contacts:David Brisco, Chief Executive Officer Tel: 0161 476 2277Barry Welck, Non-executive Chairman Tel: 07831 396539ServicePower Technologies PLCMichael Brennan Tel: 020 7071 4300Evolution Securities LimitedAbout USDTV:USDTV was newly set-up in 2003 to fill a gap in the broadcasting market pricedabove "freeview terrestrial broadcasting" but below the cable and satelliteproviders. USDTV is well funded, having raised $26 million. Hisense, itsChina-based manufacturing partner, has agreed to extend USDTV substantialfinancing to facilitate the purchase of set-top boxes.All United States over-the-air broadcast television stations are converting toa new digital format. Congress has set a goal for all US television broadcaststo be digital by the end of 2006 and plan to switch off analogue broadcastingwhen 85% of all homes can receive digital signals; this is expected to becompleted by 2009. Several companies now provide set-top boxes capable ofreceiving digital signals including Fujitsu, Sony etc. The USDTV set-top boxwill be professionally installed by ServicePower provides high definitiontelevision picture quality (HDTV) for existing terrestrial channels plus, for a$19.95 monthly service fee, will deliver 12 quality satellite channelsincluding Disney, ESPN sports, Discovery and the TLC film channel.It is thought that in excess of 10 million homes will need to buy a newtelevision with an in-built HDTV receiver or buy a set-top box, plus theexisting three markets have identified a healthy market for a "second-room"system in homes with cable or satellite. The USDTV business plan expects itsunique package of additional channels will attract more than 8 million newcustomers to buy its set-top box and to take up its service. The service waslaunched in Salt Lake City on a trial basis in December 2003. This was viewed asuccess and the service was then launched in Albuquerque and Las Vegas in May2004. The roll out plan is supported by Wal-Mart who will have the set-topboxes available for sale in every local store ahead of the rollout of theservice.ENDSERVICEPOWER TECHNOLOGIES PLCRelated Shares:
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