Pinnacle Systems Sells Team Sports Assets to XOS Technologies

Pinnacle Systems Sells Team Sports Assets to XOS Technologies



MOUNTAIN VIEW, Calif., Feb. 7  /PRNewswire-FirstCall/ -- Pinnacle Systems, Inc.
(NASDAQ:PCLE), a leader in digital video solutions, today announced that it has
sold its Lowell, Massachusetts-based Team Sports assets to XOS Technologies. 
The definitive agreement was executed and the transaction closed Friday, Feb.
4.

"Team Sports' accomplishments for clients like the NFL and NCAA make it an
attractive addition to XOS Technologies, a company with a strong, expanding
presence in sports media management," said Patti Hart, Pinnacle Systems
chairman and chief executive officer.  "While this transaction helps us tighten
our focus on our core strengths, we believe it also offers the best avenue for
Team Sports' continued progress."

Pinnacle entered into sports media management in March 2000 when it acquired
Digital Editing Services.  In June 2000 the company also acquired Avid Sports,
a market leader in digital video analysis. The Team Sports business is
comprised of a mix of ex-coaches, ex-players and ex-general managers working in
collaboration with hardware and software developers to create industry-leading
solutions for the sports market.

"Our mission is helping sports teams prepare for every game using the most
effective resources possible," said Dan Aton, founder of XOS Technologies.
"Adding Pinnacle's Team Sports assets, which have such a strong track record in
the football market, to what XOS already offers in other sports markets, only
means even better results for our clients."

Founded in 1999, XOS Technologies develops advanced video technology solutions
for teaching and video management in the professional and collegiate sports
markets.  These sports solutions are developed to help teams effectively manage
their video, data and teaching technologies, and enhance the teams'
communication and preparation.

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 650-526-1600 or at http://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: 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 Team Sports; and the ability to attract, hire and
retain key employees.  All information set forth in this release and its
attachments is made as of February 7, 2005, 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 http://www.sec.gov/. 

DATASOURCE: Pinnacle Systems, Inc.



CONTACT:  Amy Whelan, Corporate Communications Manager of Pinnacle

Systems, [phone]



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

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