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From: "prdept" <prdept.Building#...@msmail.corp.sgi.com>
Newsgroups: comp.sys.sgi.announce
Subject: Formation of Interactive Digitial Solutions
Followup-To: comp.sys.sgi.announce
Date: 24 Jun 1994 13:27:52 -0500
Organization: Silicon Graphics, Inc.
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AT&T, SILICON GRAPHICS FORM NEW COMPANY TO SPEED ARRIVAL 
OF INTERACTIVE SERVICES VIA TELEPHONE, CABLE NETWORKS 

NEW  YORK (June  22, 1994)  -- AT&T  Network Systems  and Silicon
Graphics, Inc.  (NYSE: SGI) said  today they have formed  a joint
venture company  -- Interactive  Digital Solutions --  to rapidly
develop  and deliver  large-scale, fully  integrated, interactive
video server  solutions for telephone company  networks and cable
TV systems. No financial terms were disclosed.

Software and  other products of  the new company, which  is owned
equally by AT&T  and Silicon Graphics, will  help local telephone
companies,  cable  systems  and  other  network  providers  offer
movies-on-demand   and   other  interactive   entertainment   and
information services to consumers, students and business people.

At a news conference here  to announce the venture, the companies
demonstrated  capabilities available  today  by  using a  Silicon
Graphics  media  server  with  AT&T  Network  Systems'  broadband
networking  capabilities.   Software  developed   by  Interactive
Digital Solutions will greatly expand the multimedia capabilities
that  service providers  can offer  their customers  in the  near
future, they said.


The  new company  will develop  software to  seamlessly integrate
Silicon Graphics'  powerful MIPS(r)  RISC-based media  server and
system software  with key elements of  public networks, including
such AT&T products as high-speed switches, synchronous transport,
broadband access systems and network operations systems.


"AT&T is  committed to providing  telephone and cable  TV company
customers the most complete  solutions possible," said Richard A.
McGinn, president of AT&T Network Systems.

"By  teaming up  with a  major  leader in  visual computing  like
Silicon Graphics, we can help our customers offer their customers
the  most comprehensive  set of  interactive multimedia  services
possible," he said.

"We're committed to early  commercial deployment of practical and
useful interactive  digital services. The challenge,  however, is
astoundingly   complex,   requiring   a   carefully   engineered,
high-performance   architecture,"  said   Edward  R.   McCracken,
chairman and chief executive officer of Silicon Graphics.

"Interactive  Digital  Solutions  will  meet  that  challenge  by
linking  Silicon   Graphics'  computing  expertise   with  AT&T's
commitment to open systems and unquestionable ability to reliably
connect the world with vital information and services."

James  M.  Barton,  vice-president  of  Silicon  Graphics'  Media
Systems Division, will assume the full-time position of president
and general manager of  Interactive Digital Solutions, which will
be  based  in  Mountain   View,  Calif.  AT&T  Switching  Systems
President  Dan  Stanzione  will  serve as  chairman  of  the  new
company.

"More and more telephone  carriers and cable television companies
are  planning  to  upgrade  or enhance  their  infrastructure  to
deliver interactive  multimedia services  to homes  and offices,"
Barton said.

"Interactive  Digital Solutions  will help  them introduce  those
services, creating the opportunity for  a wide variety of content
owners  to offer  interactive  products on  a wide-scale  basis,"
Barton  said.  "This  new  independent  company  draws  from  the
strengths of AT&T and Silicon  Graphics and is uniquely suited to
develop the backbone for interactive networks."

The primary  customers for Interactive Digital  Solutions will be
large local service providers  such as telephone companies, cable
television  companies  and  other network  operators  around  the
world. Products  will be  sold and serviced  in these  markets by
AT&T  Network Systems  through existing  sales channels  with the
full support of  the joint venture. In addition,  the new company
will provide video solutions for use in private networks.

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