Avid® announced it has completed its acquisition of Orad Hi-Tec Systems, a leading
provider of state-of-the-art 3D real-time graphics, video servers, and related
workflow management solutions. The Orad product lines are highly complementary
to the Avid MediaCentral Platform, and allow Avid to give media organizations and
creative professionals more comprehensive workflows with greater choice,
flexibility, and operational efficiency.

Avid plans to expand its portfolio and distribution network with Orad’s line of news,
channel branding, sports production and enhancement, elections and special events,
virtual studios, video walls, and virtual advertisement products. With this expanded
capability, media organizations on the Avid MediaCentral Platform should be able to
reduce the burden of piecing together disparate fragmented workflows in their
production environments, resulting in less complexity, fewer interoperability
challenges, and greater efficiency and productivity.

The combination of Avid and Orad is expected to deliver a number of significant
benefits for customers of both companies, including:
• Enhanced integration —Key Orad solutions are already integrated with products on
the Avid MediaCentral Platform including graphics integrations with Avid iNEWS
newsroom management and Media Composer, as well as video server support for
ingest and playout with DNxHD. In the near future, customers should experience
enhanced integration between more Avid and Orad solutions.
• More comprehensive workflows — Tightly integrating Orad’s products into the Avid
MediaCentral Platform is intended to provide media organizations with a more
comprehensive, efficient set of on-air graphics and live production capabilities.

• Improved efficiency — With less complexity and fewer interoperability challenges,
media organizations can be more productive and operate more efficiently when
more of their critical workflow solutions are integrated onto a single platform.
• Complete choice with an open ecosystem — While the MediaCentral Platform will
now include its own line of on-air graphics and live production solutions via Orad,
customers will continue to enjoy complete choice over which solutions they want to
use in their environments.

• More options for workflow management — Orad’s workflow management solutions
are highly complementary to Avid’s asset and workflow management (MAM)
solutions, and Avid is working to align the two product lines to provide a more
comprehensive workflow management solution for customers of both product sets.

Under the terms of the deal, Avid paid €5.67 in cash for each share of Orad
common stock, which at today’s exchange rate equals approximately $65 million
USD, net of estimated cash acquired. The company funded the transaction with the
proceeds received from the recently announced sale of its convertible senior notes.
Avid expects the transaction to be accretive on an adjusted EBITDA and cash flow
basis. In addition, the company expects to provide updated annual guidance in
connection with the second quarter business update call, which would include the
impact of the transaction.