`Media: Eileen King/Emily Brunner
`Morgen-Walke Associates, Inc.
`(212) 850-5600
`Ed Lewis
`iPIX
`(423) 482-3000
`lewise@ipix.com
`Stu Roberson
`PictureWorks Technology
`(925) 855-2001 x181 sroberson@pictureworks.com
`IPIX TO ACQUIRE PICTUREWORKS TECHNOLOGY, INC. TO FORM END-
`TO-END INTERNET IMAGING SOLUTIONS COMPANY
`$175 Million Acquisition to Create Industry Leader in B2B and B2C Visual Content Infrastructure--Building the "Imaging Infranet" to
`Drive E-commerce
`OAK RIDGE, Tenn. and PALO ALTO, Calif. (3/8/00)--Internet Pictures Corporation (Nasdaq: IPIX, "iPIX"), a leader in visual content
`infrastructure solutions for the Internet, and PictureWorks Technology, a leader in digital media solutions which enable end-users to
`easily publish still photos and other rich media content to the Web, announced today that they have signed a definitive agreement for
`iPIX to acquire PictureWorks in a stock-for-stock transaction valued at approximately $175 million. The combined companies and
`their technologies will create the first "Imaging Infranet," an extensive global infrastructure of services, networks, and content delivery
`systems for visual content. This combination of robust infrastructure and services will make iPIX the choice for one-stop Internet
`imaging solutions in the real estate, e-retail, travel, publishing, entertainment, consumer online auctions,
`architecture/engineering/construction and insurance markets.
`Upon closing, this acquisition will position iPIX as the only end-to-end provider of visual content solutions including:
`- Full-service virtual tours provided by iPIX's photographer network
`- Self-service 360 by 360 degree virtual tours using iPIX camera kits
`- Instant publishing of still photos to Web sites using PictureWorks' Rimfire solution
`- iPIX interactive WebCams
`- iPIX Movies
`- Transformation and enhancement (watermarking, annotation, PhotoMovies(TM), SurroundView(TM), etc.) of user-supplied images
`using Rimfire
`- Visual content hosting and distribution to leading Web sites across the Internet
`"By combining with PictureWorks, we will create the leading provider of visual content solutions for e-commerce applications on the
`Internet," said Jim Phillips, chairman and CEO of iPIX. "PictureWorks' industry leading technology and proven track record, together
`with iPIX's innovative technology and global visual content infrastructure, will create a winning and complementary imaging solution.
`This merger will solidify iPIX's position as the leader in imaging for the Internet and will provide our B2B and B2C customers with
`the most comprehensive, end-to-end content acquisition and delivery solution in the market today."
`Under terms of the agreement, iPIX will acquire all of the outstanding shares of PictureWorks stock in exchange for iPIX common
`stock. iPIX will issue 5,367,670 shares of iPIX Common Stock to the PictureWorks stockholders. The agreement provides that if the
`average closing price of iPIX Common
`
`Exhibit 2018, Page 1
`Apple Inc. and Twitter, Inc. v. Summit 6 LLC
`IPR2015-00687, Summit 6 LLC
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`Stock is more than $37.06, then the PictureWorks stockholders will receive 4,668,106 shares of iPIX Common Stock, and if the
`average price of iPIX Common Stock is less than $27.39, then the PictureWorks stockholders will receive 6,240,981 shares of iPIX
`Common Stock. The merger will be effected on a tax-free basis to iPIX stockholders and will be accounted for as a purchase. The
`acquisition is subject to certain closing conditions and is expected to close during March 2000.
`The combined companies will continue to extend their highly scalable `Imaging Infranet' solutions by leveraging relationships with
`Akamai and Exodus, and will support emerging streaming media formats and all leading digital camera manufacturers including
`Kodak, Nikon, Olympus, Epson, and Sony. The companies will have over 1,000 customers, including AOL, Homestore.com,
`Discovery.com, Microsoft, CNN, General Motors, IBM, NBC, Travelocity, Disney, Viacom, ADP, Auctions.com and Polaroid plus a
`network of more than 500 iPIX photographers covering over 5,500 cities around the globe.
`NEW MARKET OPPORTUNITIES IN AUCTIONS, A/E/C AND INSURANCE
`iPIX, which provides imaging solutions for e-commerce applications, will combine its visual content infrastructure with PictureWorks'
`Rimfire Internet media services and infrastructure. PictureWorks' Rimfire services will enable iPIX to capture media including still
`photos, sound, audio and video directly from end-users and host and distribute it using iPIX's back-end content distribution and
`management system. This acquisition allows iPIX to enhance its offering to the real estate industry as well as new markets requiring
`large-scale visual content management including consumer online auctions, architecture/engineering/construction and insurance.
`"PictureWorks and iPIX are rapidly building market share and penetration of their Internet imaging solutions," said Alexis Gerard,
`president of digital imaging advisors, Future Image. "The combined services and visual content infrastructure of the two companies
`provides a complete turnkey Internet imaging solution for numerous markets, including real estate, insurance, travel, and auctions.
`That includes a full service photographer network, and do-it-yourself support for the over ten million digital camera owners using the
`Internet today. This is a combination that will be hard for competitors to match."
`By acquiring PictureWorks, iPIX believes it will be best positioned in the market to offer B2B and B2C imaging Infranet solutions to
`leading e-commerce providers. With the addition of PictureWorks' services and infrastructure to iPIX's visual content infrastructure,
`iPIX adds easy-to-use media collection and transformation services that allow e-commerce sites to deploy large-scale online visual
`content. Using a content management solution from the combined companies, consumers can drag and drop still photos and other user-
`created media including sound, audio and video into a Web based client/server solution that collects, formats and distributes the data.
`"By joining forces with an organization of iPIX's caliber, we can truly empower businesses with the broadest range of visual content
`solutions and infrastructure available. Our combined company will create the de facto standard for B2B and B2C imaging technologies
`and services for the Internet," said Don Strickland, CEO of PictureWorks Technologies. "The benefit to our combined and future
`customers is one-stop outsourcing of all imaging requirements for the Internet."
`This acquisition allows iPIX to enhance its offering to the real estate industry with still photo submission, management and distribution
`in addition to the iPIX Virtual Tour. Homestore.com recently selected PictureWorks' Rimfire solution to provide "Instant Photo
`Submission" for adding multiple photos to real estate listings. Using Rimfire, real estate professionals have the ability to instantly and
`easily enhance their property listings with additional photos. It allows the simple drag and drop of images from any digital camera,
`scanner, CD, or floppy disk directly into the Rimfire-enabled Web page. Rimfire automatically previews, resizes and formats the
`photos, saving time for the user.
`THE `IMAGING INFRANET'
`"With the acquisition of PictureWorks, iPIX is positioned to be a leading provider of B2B imaging for the Internet," said Kristy Holch,
`principal, InfoTrends Research Group. "The addition of Rimfire to iPIX's end-to-end visual content infrastructure will provide
`businesses robust, easy-to-use and highly scaleable imaging solutions for e-commerce applications."
`
`Exhibit 2018, Page 2
`Apple Inc. and Twitter, Inc. v. Summit 6 LLC
`IPR2015-00687, Summit 6 LLC
`
`
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`The combined companies offer an end-to-end visual content infrastructure:
`- Visual Content Capture and Processing - Meeting business and consumer demand for full-service and do-it-yourself imaging
`solutions, the combined company provides the easiest to use content creation tools and applications in addition to a global network of
`photographers covering over 5,500 cities around the world and full service image processing centers.
`- Visual Content Management and Hosting - Integrating PictureWorks Rimfire, an industry leading drag-and-drop media submission,
`management and delivery infrastructure with iPIX's advanced visual content hosting solution provides businesses and consumers a
`high performance and scaleable digital media management infrastructure.
`- Visual Content Distribution - Offering the broadest range of end-to-end visual content solutions, iPIX seamlessly distributes visual
`content to many of the Internet's most trafficked sites and iPIX View Always technology enables users to view images on multiple
`platforms from personal computers to wireless, handheld devices.
`The company's headquarters will remain in Oak Ridge, Tennessee and Palo Alto, California, and will include offices in Atlanta,
`Chicago, Danville, London, Los Angeles, New York, and Tokyo.
`ABOUT IPIX
`iPIX (NASDAQ: IPIX) provides global visual content infrastructure solutions for leading e-commerce and new media Web sites. The
`iPIX end-to-end solutions enable the creation, hosting and distribution of rich visual content to thousands of Internet sites. A broad
`array of industries, including real estate, e-retail, automotive, travel, publishing and entertainment are capitalizing on iPIX visual
`content to give viewers more information, more interaction and a richer online experience. The company is headquartered in Oak
`Ridge, Tennessee with co-headquarters in Palo Alto, California
`ABOUT PICTUREWORKS TECHNOLOGY
`PictureWorks Technology, Inc. is an award-winning developer and marketer of pioneering Internet imaging technologies. The
`company provides media infrastructure and services to web sites requiring high volumes of user-supplied content. Their Internet
`services make it easy for customers to collect, transform, and deploy millions of media objects in just seconds. PictureWorks currently
`markets its services to the online auctions, real estate, classifieds, insurance and A/E/C industries. Founded in 1994, PictureWorks is a
`privately held company headquartered in Danville, California.
`
`###
`IPIX, Interactive Pictures, iPIX, Internet Pictures and bamboo.com are trademarks of Internet Pictures Corporation. Infranet(R) is the
`trademark of Portal Software Inc.
`This press release contains forward-looking information within the meaning of
`Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbors
`created by those sections. Statements concerning the implementation of Internet Pictures Corporation's services and the benefits
`expected to result from those services constitute forward-looking statements and are based on current expectations. Actual results may
`differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ include the
`failure of Internet Pictures Corporation to complete the merger, and the failure to successfully integrate PictureWorks' business and
`operations into its own. The matters discussed in this press release also involve risks and uncertainties described from time to time in
`Internet Pictures Corporation's filings with the Securities and Exchange Commission (SEC). In particular, see "Risk Factors" in the
`proxy statement included in the Registration Statement for bamboo.com, Inc. (now known as Internet Pictures Corporation) on Form
`S-4 declared effective by the SEC on December 16, 1999
`(www.sec.gov). <http://www.sec.gov>.
`
`Exhibit 2018, Page 3
`Apple Inc. and Twitter, Inc. v. Summit 6 LLC
`IPR2015-00687, Summit 6 LLC