Chyron to Acquire Hego Group

Chyron to Acquire Hego Group 
The Combined Company Will Create a New Driving Force in the Fields of
TV Graphics, Data Visualization and Production Services for Live TV,
News and Sports Production; Management to Discuss Transaction via
Conference Call Today at 10 a.m. ET 
MELVILLE, NY -- (Marketwire) -- 03/11/13 --  Chyron Corporation
(NASDAQ: CHYR), a leading provider of Graphics as a Service for
on-air and digital video applications, today announced that it has
signed a definitive agreement to acquire Hego AB and its subsidiaries
(collectively, "Hego Group"), a leading provider of powerful graphics
and data visualization solutions for TV and sports. Hego Group is a
privately-held company with its headquarters in Stockholm, Sweden,
and has operations in Norway, Finland, Czech Republic, UK and USA.
The combined company will be rebranded as ChyronHego. 
The transaction will take the form of a stock transaction whereby
Chyron will issue a number of shares of Chyron common stock which
will represent 40% of its aggregate shares of common stock
outstanding, including certain outstanding options, after the
closing, in exchange for all of Hego's outstanding capital stock.
Upon the achievement of certain revenue milestones during 2013, 2014
and/or 2015, Hego's shareholders will also be entitled to receive
additional shares of Chyron common stock such that the total number
of shares of Chyron common stock issued in the transaction is equal
to 50% of the aggregate shares of Chyron common stock outstanding,
including certain outstanding options, after the closing.  
The transaction is subject to customary closing conditions, including
the approval by Chyron's shareholders, and is expected to close in
the second quarter of 2013. Chyron's board of directors unanimously
approved the transaction and Chyron shareholders representing 40% of
Chyron's outstanding common stock have committed to vote in favor of
the transaction. At the closing of the transaction, Johan Apel,
chairman and CEO of Hego Group, will be elected to Chyron's board of
directors and will be appointed president and COO of ChyronHego.
Michael Wellesley-Wesley, president and CEO of Chyron, will remain as
ChyronHego CEO. Hego's shareholders will also be entitled to appoint
one other member to Chyron's board of directors. Morpheus Capital
Advisors acted as exclusive financial advisor and provided a fairness
opinion to Chyron's board of directors that the transaction was fair
to Chyron and its shareholders from a financial point of view as of
the date of this press release. 
"The merger of Chyron and Hego brings together two pioneering
companies to create a global leader in broadcast graphics creation,
playout, and real-time data visualization. This is a truly
transformative transaction for Chyron," said Michael
Wellesley-Wesley. "By combining the teams and resources of Chyron and
Hego, we will deliver to our customers a highly diverse and
compelling broadcast graphics capability."  
The Chyron and Hego product lines are complementary with very little
overlap. Hego's solutions predominantly address the needs of live
sports production with product categories such as Augmented Reality
and Virtual Product Placement, Telestration, and Production Services
offerings based around their proprietary Image and Player Tracking
solutions. For its part, Chyron has recently been more focused on
graphics solutions for live and near-live news production workflows.
Upon consummation of the transaction, it is anticipated that
ChyronHego would vault to second place in terms of global market
share.  
Mr. Wellesley-Wesley also added, "Hego is a well-managed, fast
growing, profitable company with state-of-the-art products.
ChyronHego will be focused on near- and long-term value creation for
its shareholders, and we believe its comprehensive and competitive
product portfolio will quickly make it a market leader in our
industry."  
"With this merger, we are looking forward to integrating Hego and
Chyron solutions and working together to innovate new products and
services," stated Johan Apel, chairman and CEO of Hego Group. "Our
objective is to develop powerful, easy-to-use solutions for sports,
news and live TV. Hego has grown quickly over the last few years but
this merger takes us to a whole new level, especially in North and
South America where our offerings have been generating significant
interest. We're excited about this combined company and I believe
that our customers are the real beneficiaries." 
Conference Call and Webcast: Hego Transaction, Fourth Quarter and
Full Year 2012 Financial Results:
 Chyron Corporation management will
host a conference call on Monday, March 11, 2013, at 10:00 AM eastern
time, to review the Hego transaction and the fourth quarter and full
year 2012 results. Participants using the telephone should dial
877-556-5248 (U.S. and Canada) or 720-545-0029 (International), and
enter conference code 20581174. Web participants are encouraged to go
to http://investor.chyron.com or www.earnings.com. A replay will be
available shortly after the call on http://investor.chyron.com, click
on Events & Presentations. 
About Chyron
 Chyron (NASDAQ: CHYR) is a leading provider of Graphics
as a Service for on-air and digital video applications including
newsrooms, studios, sports broadcasting facilities, and corporate
video environments. An Emmy(R) Award-winning company whose products
have defined the world of digital and broadcast graphics, Chyron's
graphics solutions include the Axis World Graphics online content
creation software and order management system, on-air graphics
systems, clip servers, channel branding, and graphics asset
management solutions, all of which may be incorporated into the
company's BlueNet(TM) end-to-end graphics workflow. More information
about Chyron products and services is available on the company
websites: www.chyron.com and www.axisgraphics.tv. The company's
investor relations information is at www.chyron.com, click on
"Investors". 
About Hego Group
 Founded in 1969, Hego has spent over four decades
helping broadcasters and the sports industry offer audiences a more
engaging live entertainment experience. Hego has a reputation for
being at the forefront of enhancing the presentation of live data and
video through its innovative technology in real-time graphics,
virtual graphics, touch and telestration, as well as its
revolutionary 3D player tracking system. These capabilities are
delivered either as products or as full production services. For more
information about the company and its offerings please see
www.hegogroup.com. 
Special Note Regarding Forward-looking Statements
 This press release
may contain "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on management's current
expectations and are subject to certain risks and uncertainties that
could cause actual results to differ materially from those set forth
in or implied by such forward-looking statements. These risks and
uncertainties include, but are not limited to: the consummation of a
merger transaction with Hego; our ability to combine Chyron and Hego
product offerings and sales and marketing activities; current and
future economic conditions that may adversely affect our business and
customers; our revenues and profitability may fluctuate from period
to period and therefore may fail to meet expectations, which could
have a material adverse effect on our business, financial condition
and results of operations; our ability to maintain adequate levels of
working capital; our ability to successfully maintain the level of
operating costs; our ability to obtain financing for our future needs
should there be a need; our ability to incentivize and retain our
current senior management team and continue to attract and retain
qualified scientific, technical and business personnel; our ability
to expand our Axis online graphics creation solution or to develop
other new products and services; our ability to generate sales and
profits from our Axis online graphics services, workflow and asset
management solutions; rapid technological changes and new
technologies that could render certain of our products and services
to be obsolete; competitors with significantly greater financial
resources; new product and service introductions by competitors;
challenges associated with expansion into new markets; and, other
factors discussed under the heading "Risk Factors" contained in Item
1A in our Annual Report on Form 10-K for the year ended December 31,
2012, which has been filed with the Securities and Exchange
Commission, as well as any updates to those risk factors filed from
time to time. All information in this press release is as of the date
of the release and we undertake no duty to update this information
unless required by law. 
Important additional information will be filed with the SEC and
distributed to shareholders of Chyron
 Chyron intends to file with
the SEC and mail to its shareholders a Proxy Statement on Schedule
14A pursuant to Section 14(a) of the Exchange Act in connection with
the proposed transaction described in this document. The Proxy
Statement will contain important information about Chyron, Hego, the
proposed transaction, and other related matters. Chyron's investors
and security holders are urged to read this document carefully when
it is available. 
Chyron's investors and security holders will be able to obtain free
copies of the Proxy Statement and other documents to be filed with
the SEC by Chyron regarding the transaction through the web site
maintained by the SEC at www.sec.gov. 
Chyron and its directors and executive officers may be deemed to be
participants in the solicitation of proxies in respect of the
transactions contemplated by the purchase agreement. Information
regarding Chyron's directors and executive officers is contained in
Chyron's Form 10-K for the year ended December 31, 2012 and its most
recent proxy statement dated April 6, 2012, which are filed with the
SEC. Chyron's proxy statement dated April 6, 2012 also contains
information regarding the beneficial ownership of Chyron's stock by
Chyron's directors and executive officers. A complete description of
any interests of Chyron's directors and executive officers in the
transactions contemplated by the purchase agreement will be provided
in the Proxy Statement.  
Contact: 
Chyron Investor Relations
Tel: (631) 845-2000, press 7
Email: IRelations@chyron.com 
 
 
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