OTTAWA, ONTARIO--(Marketwire - July 19, 2012) - International Datacasting Corporation (TSX:IDC) ("IDC" or the "Company") and its President & CEO, Frederick Godard wish to set the record straight on misleading and factually incorrect comments made by Mr. Adam Adamou, a dissident shareholder, in an article and a press release published recently.
CEO's Position on Adamou's Strategy:
Mr. Godard stated, "Let me be very clear. I do not support the strategy put forward by Mr. Adamou. It is a strategy that is fundamentally flawed and it will cripple the Company's ability to grow its business. I refuse to stand on his slate of directors or otherwise be associated with his strategy."
CEO Refuses to Serve on Adamou's Board Slate:
Mr. Godard further stated, "At no point did I enter into negotiations to join Mr. Adamou's slate of directors, he added me to his slate without my knowledge or consent. It is totally misleading to suggest otherwise. The truth is that several significant independent shareholders asked me to attempt to negotiate a bridge between Management's and Mr. Adamou's differences in order to bring this damaging public debate to a close. My attempt to find a middle ground and avoid this messy and expensive public confrontation was immediately rejected by Mr. Adamou."
Services of Proxy Solicitation Firm:
The requirement for this service has been brought on by Mr. Adamou's damaging proxy battle and is necessary in order to ensure that all shareholders are apprised of the appropriate facts.
IDC Laser™ and Digital Tattoo™:
These innovative products were conceived and developed internally and were entirely separate initiatives from Mr. Adamou's BAQ strategy. Mr. Adamou is again misleading shareholders to suggest otherwise.
Grow vs. Sell Strategy
Mr. Adamou completely misrepresents the situation when he says that he supports growth and Management represents the sale of IDC. The truth is that, Management's focused Business Growth Strategy supports:
- rebuilding the core business, and;
- growth through new products, innovation, leveraging technology and global channel management.
These steps have already been put in place and are close to fruition.
Mr. Adamou wants to turn IDC into a holding company with a portfolio of scattered niche businesses. This latter experiment has already failed at IDC.
Shareholders Increasingly Support Management
Mr. Godard's views are shared by increasing numbers of shareholders.
One such example is an email exchange that occurred recently between a concerned long-standing international shareholder (who holds approximately 7% of the outstanding IDC shares) and Mr. Adamou. This shareholder felt it important to send a copy of the exchange to IDC:
|"OK Adam, you wish to continue this battle…. your actions are damaging the running business and this is not in our interest.
|We have learned that is always better to divide profit than losses. If there are no hidden agendas, this case would be solved
|It is without no doubts that the blue is a take-over without paying for it. This will destroy the company. Thinking that pumping up the company by acquisitions to get the share price to higher levels is a trick. We all have seen them come and go and sometimes they are being stopped before they ruin everything. They are masters in taking advantage of dwelling shareholders and their message is always one filled with fear. And they feed themselves with assets from others.......
|Your strategy is not a strategy, it is a myth and it is purely based on expectations and bringing fear to shareholders. The blue will become the Blues... If not by the end of this month, then within 1 or 2 years."
Mr. Adamou's insistence on issuing inflammatory and misleading press releases is distracting shareholders from the real issues at hand.
Management asks shareholders to join them in building a world class technology company with a clear growth strategy focused on large and scalable markets.
Vote Your WHITE Proxy
You are urged to vote only your WHITE proxy well in advance of the deadline of 5:00 p.m. (Eastern Time) on July 27, 2012.
If you have voted a blue proxy, you can still change your vote, simply by voting your WHITE proxy today. Your subsequent later dated WHITE proxy will replace any prior dated blue proxy you may have voted.
Shareholders who do not have a WHITE proxy or who have general questions or questions about voting their proxy for the upcoming meeting of shareholders are encouraged to contact Kingsdale Shareholder Services Inc. toll-free at 1-866-581-1514, or (416) 867-2272 (collect calls accepted), or email@example.com.
About International Datacasting Corporation
International Datacasting Corporation (TSX:IDC) is a producer of digital content distribution for the world's premiere broadcasters in radio, television, data and digital cinema. IDC offers a broad portfolio of advanced solutions including Pro Audio, Pro Video, Pro Cinema, and Pro Data for implementing broadcast content contribution and distribution applications. IDC's products and solutions are in demand for radio and television networks, digital cinema, 3D live events, ad insertion, satellite news gathering, sport contribution, ad insertion, VOD, and IPTV among others. IDC is headquartered in Ottawa, Canada, with regional offices in Arnhem, the Netherlands and in San Diego, California. IDC has installations in over 100 countries and service offices in Australia, Singapore and China with an international network of value-added partners and distributors. www.datacast.com
This press release contains forward-looking statements reflecting IDC's objectives, estimates and expectations that may involve risks and uncertainties. IDC's actual results, performance, achievements and developments may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Factors that might cause actual results to differ materially include, but are not limited to, competitive developments; risks associated with IDC's growth; any difficulties with integrating acquired product lines into IDC's business and/or manufacturing procedures; any difficulties or disputes with IDC's subcontractors, contract manufacturers and suppliers; IDC's dependence on the development and growth of the satellite datacasting market; a lengthy and variable sales cycle for IDC's products and services; IDC's reliance on a small number of customers for a large percentage of its revenue; regulatory risks and intellectual property infringement. IDC assumes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof, except as expressly required by applicable law. Forward-looking statements are provided to assist external stakeholders in understanding IDC's expectations as at the date of this release and may not be appropriate for other purposes. Readers are cautioned not to place undue reliance on such statements. More detailed information about potential factors that could affect IDC's financial and business results is included in the public documents IDC files from time to time with Canadian securities regulatory authorities and which are available on SEDAR at www.sedar.com, including, without limitation, IDC's Annual Information Form dated April 30, 2012.