Press ReleasesTeraRecon, Inc. targets consumer image processing market and accelerates medical semiconductor development through capital investment by Funai Electric Co. Ltd. San Mateo, CA--January 29, 2004: TeraRecon, today announced that Funai Electric Co., Ltd. (Osaka, Japan) has assumed a significant equity position in TeraRecon, Inc. and entered into an agreement with the company related to the development of a digital imaging microprocessor and software environment for the consumer electronics and digital imaging field, where Funai Electric Co. Ltd. is a leading supplier with 2003 revenues over $3bn. The planned processor will utilize the unique strength and rich feature set of TeraRecon's flagship HISC processor "XTrillion®". Through an investment of $27,300,000, Funai Electric Co. Ltd. has become the company's second largest stockholder, second only to stock indirectly owned through a holding company by TeraRecon, Inc.'s founders, Motoaki Saito, M.D. (President and CEO) and Kazuo Takahashi (Executive Vice President and CTO). The Funai Electric Co. Ltd. investment involved purchase of certain previously issued stock for a total of $15,600,000, and newly issued stock for $3,300,000. Simultaneously, Funai Electric's President and CEO, Tetsuro Funai, purchased certain previously issued stock for $8,400,000. In addition to the common stock purchase by Funai Electric Co. Ltd. and Mr Funai, TeraRecon, Inc.'s Series G round raised around $13,500,000 in the year 2003, including the preferred stock issued to Funai Electric Co. Ltd.. The agreement between Funai Electric Co. Ltd.
and TeraRecon Inc. describes how TeraRecon will develop and provide
a digital imaging processor and software environment for use in consumer
electronics devices featuring image processing. Dr Saito explained
"Under the terms of this agreement, Funai Electric Co. Ltd., is granted
an exclusive right to use TeraRecon's flagship HISC processor "XTrillion®"
in consumer digital display and imaging products. Our companies expect
that the advanced digital image processing technologies developed
by TeraRecon, Inc. for demanding advanced diagnostic medical imaging
applications will create a totally new class of consumer digital display
and imaging equipment based on a new processor with the working title
"FTrillion"." Funai Electric Co. Ltd. is to utilize the new processor
in the company's next generation of consumer display and digital imaging
equipment including large-format plasma displays, expected in 2005.
The first prototype plasma display is scheduled to show at the Funai
Classic, a PGA Golf tour sponsored by Funai Electric, starting on
October 18, 2004. About Funai
Electric Co. Ltd. Wal-Mart Stores Inc., the No. 1 company in the world on a gross revenue basis, presented its "Supplier of the Year 2002" prize to Funai Corporation, Inc., the company's US sales and marketing subsidiary, in recognition of its performance as the most outstanding supplier in the world. Funai Corporation Inc. was the only recipient in the household electrical appliances category. In addition, Funai was awarded Sears, Roebuck & Company's "VENDOR OF THE YEAR 2002" prize for the first time and a four-time "PARTNERS IN PROGRESS" prize for two consecutive year, given to the most outstanding supplier that has made remarkable contributions to the business development of Sears, Roebuck and to the improvement of its customer services. About TeraRecon, Inc. Contact: |
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