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ROO Group Announces Strategic Realignment, Appointment of New CEO, Reduction of Workforce and Board of Directors
NEW YORK, December 19 /PRNewswire/ --
- Digital Media Vet Kaleil Isaza Tuzman to become Chairman and CEO and to
Appoint new Slate of Directors
ROO Group (OTC Bulletin Board: RGRP) announced today that the company has
entered into an Executive Management Agreement with KIT Capital pursuant to
which it has agreed to appoint Kaleil Isaza Tuzman as Chairman and Chief
Executive Officer commencing on January 9th, 2008. Mr. Isaza Tuzman will
succeed Robert Petty, who will retain the office of Vice-Chairman of the
Board of Directors and Founder.
Mr. Isaza Tuzman, 36, is currently the President and Chief Operating
Officer of JumpTV Inc. (TSX, AIM: JTV) where he is responsible for managing
the Company's day-to-day operations including global business development,
sales, marketing, network operations and product development. As previously
announced, he will be stepping down from his operating position at JumpTV on
or before January 8th, 2008, but will remain on the board of that company.
ROO also announced that four independent members of the company's board
of directors - Simon Bax, Stephen Palley, Scott Ackerman and Doug Chertok -
have resigned. The Company's Board of Directors is expected to appoint Isaza
Tuzman as a Director and the Chairman of the Board of Directors. Upon Mr.
Isaza Tuzman's appointment, the Board will consist of three directors which
will include current board members Robert Petty and Robin Smyth, Executive
Director. In accordance with the terms of an Executive Management Agreement,
Isaza Tuzman will have the right to appoint up to four new independent board
members to fill vacancies on the Board of Directors, subject to shareholder
approval. Isaza Tuzman, is also investing in the Company through an
affiliated entity.
Mr. Isaza Tuzman has been brought on to rationalize the existing business
and position ROO to become the leader in IPTV infrastructure services-through
both organic growth and strategic acquisition. The company is already one of
the leading distribution platforms in the online media space and is the
premier solution for IP-based Video-on-Demand. The ROO Video Network is
watched by millions of viewers and supported by a wide-range of premium
advertisers.
"We are very pleased to welcome Kaleil as our new CEO," said Robert
Petty, Chairman of ROO. "Kaleil brings the experience and insight needed to
lead us through this next stage of growth. He has a proven record of helping
companies achieve their fullest potential and we are confident that his deep
knowledge of our sector, operational discipline and leadership skills will
enable us to generate value for our shareholders."
Mr. Isaza Tuzman stated, "ROO is at an inflection point in its
development. The massive growth in the demand for high-value, IP video
content, coupled with the need for leading edge platform provisioning puts
this company in a very enviable position. I believe that with greater
emphasis on exclusive content, TV broadcaster relationships and the best
quality distribution tools, ROO will become the leading player in the
provisioning of video over the Internet. In my view, a focused B2B strategy
is what is needed to build a profitable company in the sector. ROO's
commitment to this path - coupled with our shared vision of potential
industry consolidation - has been critical to my decision to invest in and
manage the company."
Under new management, the company plans to:
- Leverage expertise in international media to expand client and partner
base;
- Reduce costs and implement cost control policies company-wide,
- Achieve profitability as quickly as possible;
- Assess and prioritize product development initiatives;
- Assess corporate branding;
- Assess and execute strategic acquisitions consistent with the IPTV
platform provisioning strategy, including the development of live-
streaming and mobile distribution capabilities.
As part of the strategic realignment, ROO also announced today that it
has completed a recent reduction of 21% of its workforce. This decision
reflects the substantial completion of ROO's platform and automated
distribution tools, which have made the company more efficient and reduced
staffing needs.
"ROO has now entered a new phase of development," said Robert Petty,
Chairman of ROO. "We have substantially automated our operations, allowing us
to function as a leaner, more effective company."
Mr. Petty concluded, "I would like to thank our independent board members
for their contributions to our organization. As a result of their guidance,
we are now a stronger, more efficient company."
As part of the Executive Management Agreement, KIT Capital Ltd., an
entity controlled by Kaleil Isaza Tuzman, has been granted the right to
purchase up to 51% of the preferred class of shares in the Company at
US$0.38 per share. KIT Capital has the option to invest up to US$5 million
in common shares of the Company at US$0.16 per share, a 15% premium to the
closing price yesterday, December 18th, 2007.
Conference Call
ROO will be hosting a conference call at 10:00am EST / 3:00pm GMT today,
December 19, 2007 to discuss these developments. Interested parties can
listen to the conference call by dialing +1-866-770-7129 (North America) or
+1-617-213-8067 (international) and citing code 45326864. A live Webcast of
the conference call will be available on the Company's Investor Relations Web
site at http://www.roo.com/about/investors.aspx. Please log-on or dial-in
at least 10 minutes prior to the start time to ensure a connection.
A replay of the call will be available for seven days by calling
+1-888-286-8010 (North America) or +1-617-801-6888 (international) and citing
code 38544849. An on-demand replay of the webcast will be available shortly
after the conclusion of the presentation and will be available for
approximately thirty days.
Kaleil Isaza Tuzman Bio
Isaza Tuzman is currently the president and COO of JumpTV Inc.
(TSX, AIM: JTV), a leader in broadcasting international television and sports
over the Internet. He has been a venture capitalist and entrepreneur in
digital media since the late '90s, as managing partner of a New York-based
merchant bank focusing on new media companies. Isaza Tuzman has served as
chairman and CEO of KPE, Inc., a leading digital media services company with
clients such as Sony Entertainment, Viacom and Carnival Cruises, and as
chairman and CEO of govWorks, Inc., a venture-backed government technology
services firm. Isaza Tuzman previously worked at Goldman Sachs, on investment
banking and risk arbitrage teams. He has been a member of the Council of
Foreign Relations, a U.S. trade representative, and was recently named one of
the 100 Most Influential Hispanics by Hispanic Magazine.
About ROO
ROO Group Inc. (OTC Bulletin Board: RGRP) is the digital broadcasting
specialist that drives businesses and brands by leveraging their digital
media assets to generate revenue and engage audiences. The company's
proprietary video platform, our vast library of syndicated, daily-refreshed
video content and our growing network of over 1000 affiliate sites enable us
to lead the industry in content aggregation, distribution and targeted
advertising. ROO's fast, efficient, peer-enabled network has helped secure
its position as the service provider of choice for companies seeking
effective, flexible, customized strategies for monetizing digital media
assets. The company also operates an advertising agency business specializing
in a variety of media and services including direct marketing, brand planning
and identity, and media buying and packaging. ROO has offices in the United
States, United Kingdom, and Australia. For additional information, please
visit our web site at http://www.roo.com.
Web site: http://www.roo.com
http://www.roo.com/about/investors.aspx






