S-A Snaps Up BarcoNet

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Scientific-Atlanta Inc. is aiming for a stronger footing in the European
cable market with an agreement to buy BarcoNet NV for approximately $154 million
in stock.

With about 20 offices worldwide, Brussels, Belgium-based BarcoNet has built
up a significant business in the European and Asian digital and broadcast
markets.

The company's product lineup includes digital headends, backbone-network
gear, network-monitoring systems and video- and audio-distribution
technology.

While the U.S. interactive digital market slows in a weakened economy,
Europe's markets are showing more promise. And S-A wants to be part of that
market, according to chairman, president and CEO Jim McDonald.

'It can improve your value versus satellite, and when you look to the
European markets, Europe clearly looks like the next stage where all of this
stuff is going to get rolled out,' McDonald said.

'So we looked at it and said what we really want to do is accelerate our
ability to participate with the European cable operators in rolling out all of
these new services and networks,' he added.

Gaining BarcoNet means a ready-built lineup of digital products based on the
European digital-broadcast and cable standards, he said.

'It gives us a way to accelerate our way into that market by having a company
that can bring to us a lot of the technologies and standards that are required
for the European market,' McDonald said.

The deal is expected to close in December, subject to regulatory
approval.

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