Thursday, May 26, 2005

Pace Micro Lands Set-Top Contract with Comcast

Pace Micro Technology was awarded a multi-year set-top box contract by Comcast. In addition, Comcast has agreed to license Pace's EngineWare software platform and related set-top box technology and to work with Pace on the joint development of next-generation set-top boxes and related technologies.

The total price expected to be paid for the set-top boxes over a three-year period is between approximately $375 million and $550 million based on the type of Pace boxes that Comcast may order. Under the new agreement, which supersedes an earlier set-top box purchase agreement between the companies, Comcast will purchase a variety of Pace's set-top boxes, including the recently announced Tahoe HD DVR set-top box. The purchases are subject to Comcast's acceptance of the boxes and other conditions contained in the agreement.

Comcast also will have the right to sublicense Pace's EngineWare software and specified set-top box designs in the North American cable market. In addition, Comcast and Pace will jointly fund non-exclusive development of next-generation cable set-top boxes and related technologies to be carried out by Pace's engineering team.

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