2Wire Acquires Sugar Media

SAN JOSE, Calif. -- 2Wire, Inc., the leading provider of intelligent DSL gateways, has signed a definitive agreement to acquire Sugar Media Inc., a digital media software platform company.

The move is a key milestone in 2Wire's strategy to offer DSL service providers a comprehensive and integrated platform for delivering a 'triple-play' of voice, data and entertainment services.

2Wire will acquire Sugar Media's digital media technology and expertise and will continue its research and development into broadband-enabled home entertainment solutions.

Sugar Media's founder and CEO, Brian Sugar, will serve as 2Wire's vice president, media products. Prior to founding Sugar Media, Brian Sugar was chief Web officer at Internet service specialist BlueLight.com, and before that served as VP of ecommerce at retailer J. Crew.

"The popularity of digital media, combined with the rise in DSL broadband subscriber numbers, indicates a significant market opportunity for broadband-enabled home entertainment platforms," said Brian Hinman, CEO and founder of 2Wire.

"It's always been our goal to enable the delivery of voice, data and entertainment over DSL and we've already amassed considerable resources and skills in all three areas. Combining our knowledge of service provider requirements and experience in developing intelligent, high performance broadband service platforms with Sugar Media's specialist expertise in home entertainment will allow us to turn the 'triple-play' vision into reality," continued Hinman

"As the pioneer of residential DSL gateways and the market leader, 2Wire is in a strong position to enable the delivery of home entertainment services over DSL," said Brian Sugar, founder of Sugar Media and vice president, media products at 2Wire. "Joining forces with 2Wire therefore created an ideal opportunity for Sugar Media to bring its technology and expertise to market while being part of an excellent long-term proposition."

2Wire Inc.