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November 23, 1998

SOFTNET TO BUY SATELLITE COMPANY FOR FAST NET ACCESS

By CBR Staff Writer

SoftNet Systems Inc, a competitor to RoadRunner and @Home Corp, is to acquire Intelligent Communications Inc (Intellicom), a satellite internet access provider based in Fremont and formerly known as the Xerox Skyway Network. This network was created by Xerox, GTE SpaceNet, General Instrument and Telecom General, which together spent more than $50m to provide two-way broadband communication via satellite to Xerox offices around America. Terms of the acquisition have not been disclosed. SoftNet says it wants to use Intellicom’s satellite service to route around telephone companies, hoping to cut the cost of delivering high- speed net access to small cable TV providers. The company already delivers high-speed access over cable through its ISP Channel SM service. It maintains that the acquisition will expand its business.

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