NEOMAGIC CORPORATION ANNOUNCES THE ACQUISITION OF MERCADOMAGICO.COM
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|Vice President, Administration and Information|
NeoMagic Corporation Announces The Acquisition Of MercadoMagico.com
San Jose, California - October 2, 2012, NeoMagic Corporation (NMGC.PK), the pioneer of embedded memory and logic technology, is excited to announce that it has acquired MercadoMagico.com.
MercadoMagico.com is an e-Commerce platform that will initially target the U.S. Market with a special focus on the fast growing Hispanic and Latino community. MercadoMagico.com will provide a platform where users will be able to buy and sell products from one another or buy premium electronic products directly from MercadoMagico.com.
"With completion of the acquisition of MercardoMagico.com, NeoMagic is positioning itself to execute its e-Commerce strategy of entering the multibillion dollar e-Commerce space," said Syed Zaidi, President and CEO of NeoMagic Corporation. Mr. Zaidi continued, "NeoMagic's entry into the e-Commerce space significantly expands its growth opportunities and accelerates its return to profitability."
"MercadoMagico.com aims to become the leading e-Commerce marketplace among Hispanic and Latino buyers & sellers in the U.S. and internationally," said David Tomasello, Chairman of NeoMagic Corporation. He continued, "The Hispanic online community is growing exponentially in major U.S markets; its buying power is on the rise. The Hispanic online vendor and consumer are loyal but remain underserved and it is our intent to cater to this underserved market. The MercadoMagico.com acquisition will result in the creation of a new NeoMagic Ecosystem, which will allow us to be one of the few public companies to serve this fast growing market."
Mr.Tomasello, the Managing Director of Bluestone Financial Ltd. and Attiva Capital Partners, NeoMagic's largest shareholders and major shareholders in Spanish Broadcasting System (Nasdaq: SBSA), is currently in the final stages of structuring an equity investment in NeoMagic which will include current investors and NeoMagic's management team. The details of such investment will be announced in the upcoming weeks.
With the acquisition of MercadoMagico.com, the Company's goal will be to increase revenues and profits of its high-margin semiconductor and online e-Commerce divisions. The Company also strives to increase shareholder value, improve liquidity, create greater access to capital markets and raise brand awareness.
NeoMagic will provide further updates and details of the progress of MercadoMagico.com through future news releases.
For more information, please contact Investor Relations at IR@neomagic.com
NeoMagic designs and delivers consumer electronic device solutions with semiconductors and software for video, television, imaging, graphics, and audio. We provide low cost, innovative chip technology for tomorrow's entertainment and communication needs. Our solutions offer low power consumption, small form-factor and high performance processing. As part of our complete system solution, we deliver a suite of middleware and sample applications for imaging, video and audio functionality, and we provide multiple operating system ports with customized drivers for our products. Our product portfolio includes semiconductor solutions known as applications processors. Our applications processors are sold under the "MiMagic" brand name with a focus on enabling high performance processor within a low power consumption environment. The Company has developed the Horizon Digital Picture Frame kit using our MiMagic 6+ application processor.
Our capabilities give our partners and their customers' high quality answers to excite and enhance the consumer's lifestyle. For more information, visit www.neomagic.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to the Company's plans, objectives, projections, expectations and intentions and other statements identified by words such as "projects," "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties, including those detailed from time-to-time in the Company's filings with the Securities and Exchange Commission, including our Form10-K's, 10-Q and 8-K's for 2007 through the date of October 31, 2010 hereof have been made available to the Investor at www.sec.gov. Information for the period ending January 30, 2011 to the present is not available through the SEC due to the cessation of the Company's required filings under the 1934 Act. Actual results, including, without limitation, the Company's ability to successfully raise capital may differ significantly from those set forth in the forward-looking statements. Forward-looking statements involve risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control). For example, statements about our expectations in connection with financings are subject to a variety of uncertainties and are subject to change as a result of changes in circumstances that could make it difficult for us to consummate such financings on terms acceptable to the Company, or at all. The Company undertakes no obligation to update any forward-looking statements, except as provided for by law.
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