The Digital Media Company, announced that it has completed the acquisition of MGI Software Corporation (Toronto: MGI - news). The intent to acquire was originally announced on December 4, 2001. Pursuant to the terms of the agreement between the parties, the former shareholders of MGI will receive 0.05050 shares of common stock of Roxio for every one common share of MGI or a total of 2,203,451 shares. Based on Roxio's closing price as of January 31, 2002 and the exchange rate, this amount represents a purchase price of approximately $35.4 million U.S. or C$56.9 million. On a per share basis, this represents a purchase price of approximately $0.81 U.S. or C$1.30.

By adding the best-selling photo and video editing software products, PhotoSuite and VideoWave, to Roxio's best-selling CD burning, Easy CD Creator and Toast, and system recovery software, GoBack, the acquisition creates one of the world's largest digital media software companies with a global installed base of more than 100 million consumers. Roxio's products are sold by leading retailers worldwide including Best Buy, CompUSA, Circuit City and Staples, and are bundled with devices including PCs, PDAs, digital cameras, digital camcorders, scanners and printers by leading OEMs such as Dell, Toshiba, Sony, Palm, Olympus, Nikon and Lexmark.