News Release
March 14, 2017
SOURCENEXT Corporation
Rosetta Stone and SOURCENEXT Announce Strategic Partnership in Japan
20-Year Japanese Software Pioneer to
Expand Rosetta Stone’s
Language-Learning Offerings and Marketplace Reach
ARLINGTON,
VA (March 14, 2017) –Rosetta Stone Inc. (NYSE: RST), a world
leader in digital language learning, and SOURCENEXT (TYO: 4344), Japan’s
market-leading software publisher and distributor, today announced a strategic
partnership through which SOURCENEXT has been granted a perpetual, exclusive
license to sell and develop language and education products and services in
Japan using the Rosetta Stone brand and trademark. As part of the agreement, Rosetta Stone
will have first rights to license products developed by SOURCENEXT under the
Rosetta Stone brand and trademark for resale in territories outside of
Japan.
"We have developed a strong relationship with SOURCENEXT over the last year
and I am confident they bring the technical and local marketing expertise to
best serve the Japanese language and education markets," said Rosetta Stone’s
President and CEO John Hass. "I am
also excited by the opportunities created by SOURCENEXT’s future product
development efforts, both for their customers in Japan, and appropriate
audiences we could bring products to elsewhere in the world."
Rosetta Stone entered into a commercial sales relationship with SOURCENEXT in
June, 2016, demonstrating the need for language learning in Japan. Led by founder and CEO Noriyuki Matsuda, SOURCENEXT
has partnered with various global companies including Dropbox, Evernote,
Bitdefender, and Magix to adapt and bring a broad range of world-class products
to the Japanese marketplace, with a full-service program to drive ongoing
profitability –including UI localization, domestic customer support,
merchandising, marketing, and more.
"As a pioneer and global leader in language learning, students, world
travelers, business users, and consumers, alike, from around the globe all
recognize the Rosetta Stone brand in an instant. We’re excited about the
opportunity to exclusively represent and expand the Rosetta Stone brand in
Japan," said Noriyuki Matsuda, founder and CEO of SOURCENEXT. "Through this
collaboration, we will leverage our 20 years of expertise to deliver new
language learning and education solutions that are customized and compelling
for Japanese consumers and enterprises."
In return for granting the perpetual, exclusive license to the Rosetta
Stone brand and trademarks in Japan and the transfer of certain technologies,
SOURCENEXT will pay Rosetta Stone $13.5 million, before certain adjustments, with
an additional $6 million to be paid over the next ten years.
Rosetta Stone’s globally recognized
products have helped millions of people learn a new language at home, in
schools and in the workplace for more than 25 years. The Company pioneered the
use of technology to accelerate language learning and is committed to the
continued innovation of its products.
For more information on Rosetta Stone, visit www.rosettastone.com and the investor relations section of our website. More information about SOURCENEXT can be found on its website at www.sourcenext.com/us/.
Rosetta Stone’s Caution on Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by non-historical statements and often include words such as "outlook,""potential,""believes,""expects,""anticipates,""estimates,""intends,""plans,""seeks"or words of similar meaning, or future-looking or conditional verbs, such as "will,""should,""could,""may,""might, ""aims,""intends,"or "projects."A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances. In addition, forward-looking statements are based on Rosetta Stone’s current assumptions, expectations and beliefs and are subject to certain risks and uncertainties that could cause actual results to differ materially from our present expectations or projections. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. These factors should be read in conjunction with the other cautionary statements, risks and uncertainties that are more fully described in the Rosetta Stone’s filings with the U.S. Securities and Exchange Commission (SEC), including those described under the section entitled "Risk Factors" in the Company’s most recent quarterly Form 10-Q filings and Annual Report on Form 10-K for the year ended December 31, 2015, as such factors may be updated from time to time.
# # #
About Rosetta Stone
Rosetta Stone Inc. (NYSE: RST) is dedicated to
changing people’s lives through the power of language and literacy education.
The company’s innovative digital solutions drive positive learning outcomes for
the inspired learner at home or in schools and workplaces around the world.
Founded in 1992, Rosetta Stone’s language
division uses cloud-based solutions to help all types of learners read, write,
and speak more than 30 languages. Lexia Learning, Rosetta Stone's literacy
education division, was founded more than 30 years ago and is a leader in
the literacy education space. Today, Lexia helps students build fundamental
reading skills through its rigorously researched, independently evaluated, and
widely respected instruction and assessment programs.
For more information, visit www.rosettastone.com. "Rosetta Stone" is a registered trademark or
trademark of Rosetta Stone Ltd. in the United States and other countries.
About
SOURCENEXT
SOURCENEXT (TYO:4344), Japan’s publicly traded, market-leading software
publisher and distributor, which not only plans and develops their own
products, also specializes in helping U.S. and other foreign-based software
companies launch their desktop and mobile apps in the Japanese market and grow
market share for sustained profitability. With 20 years of software publishing
experience in Japan, SOURCENEXT offers a unique, full-service Japanese market
penetration program for software providers. SOURCENEXT has helped companies
like Evernote, Dropbox, Bitdefender, Magix, and more launch successful desktop
software tools and mobile apps in Japan with its deep market experience, brand
trust, top retailer relationships, and extensive distribution network. For more, visit www.sourcenext.com/us/.
Investor
Contacts:
Frank
Milano, Rosetta Stone
ir@rosettastone.com
Fumihiko Aoyama, SOURCENEXT Corporation
Media
Contacts:
Michelle Alvarez, Rosetta Stone
malvarez@rosettastone.com
Sarah Lunny, SOURCENEXT