Pinnacle Systems Enters Into Agreement to Sell Steinberg Audio Software Business to Yamaha Corporation

Pinnacle Systems Enters Into Agreement to Sell Steinberg Audio Software Business to Yamaha Corporation

MOUNTAIN VIEW, California, December 21/PRNewswire/ -- Pinnacle Systems, Inc. (Nasdaq: PCLE), a leader in digital video
solutions, today announced that it has entered into a definitive agreement to
sell its Hamburg, Germany-based Steinberg audio software business to Yamaha
Corporation. The transaction, which is subject to regulatory approval, is
expected to be completed during Pinnacle's third fiscal quarter ended March
31, 2005.


"Steinberg's accomplishments and leadership in the professional audio
software industry are directly inline with Yamaha's long track record of
success in that same industry," said Patti Hart, Pinnacle Systems Chairman
and CEO. "We believe the deal is beneficial to both Pinnacle and Yamaha, and
is absolutely the right move for Steinberg."


As part of the transaction, Steinberg and Pinnacle will cross-license
certain intellectual property on a royalty-free basis and Pinnacle will
continue to distribute Steinberg's WaveLab Lite audio editing product with
Pinnacle Studio Media Suite.


"For Pinnacle Systems this decision continues to tighten the company's
focus on our core strengths in the digital video solutions market," continued
Hart. "We believe it also allows us to bring greater management and financial
resources to leverage our core strengths in digital video for long-term
market leadership and growth."


Pinnacle entered the audio business in January 2003 when it acquired
Steinberg Media Technologies A.G., a market leader in professional audio
software that was founded in 1984.



About Pinnacle Systems, Inc.


Pinnacle Systems provides broadcasters and consumers with cutting-edge
digital media creation, storage, and play-back solutions for use at Home, in
the Studio and on the Air. Pinnacle Systems' award winning digital media
solutions are in use around the world for broadcast, video and audio editing,
DVD and CDR authoring and on the Internet. A recognized industry leader, the
Company has received nine prestigious Emmy Awards for its technical
innovations and carries this commitment throughout all of its product lines.
Pinnacle Systems may be reached at +1-650-526-1600 or at www.pinnaclesys.com.



This press release contains forward-looking statements that involve risk
and uncertainties within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934 concerning
Pinnacle's strategic, operational, and financial plans. Actual results may
differ materially from the forward-looking statements due to certain risks,
including among others: unexpected delays in closing, or a failure to close,
the transaction discussed in the release; general economic conditions,
including business conditions in the specific markets for Pinnacle's
products; increased competition; lack of success in timely development,
production, and acceptance of new products; the failure to reduce costs or
improve operating efficiencies, including those related to the disposition of
Steinberg; and the ability to attract, hire and retain key employees. All
information set forth in this release and its attachments is made as of
December 20, 2004, and the Company undertakes no duty to update this
information. More information about potential factors that could affect the
Company's business and financial results is included in the Company's Annual
Report on Form 10-K for the fiscal year ended June 30, 2004, including
(without limitation) under the caption "Management's Discussion and Analysis
of Financial Condition and Results of Operations," which are on file with the
Securities and Exchange Commission (the "SEC") and available at the SEC's
website at www.sec.gov.



Web site: http://www.pinnaclesys.com




Source: Pinnacle Systems, Inc.

Amy Whelan, Corporate Communications Manager of Pinnacle Systems, +1-650-237-1631


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