Gibson Spins off New High Technology Company

Opcode President Chris Halaby to head up new venture

January 28, 1999 -- Gibson Musical Instruments and Opcode Systems today announced that a new high technology spin off company is being formed, headed by Opcode's President Chris Halaby and several Opcode employees. Opcode will contribute several important technologies and Gibson will own a minority interest in the new entity. Chris Halaby will remain on the Board of Directors of Gibson Guitar Corporation and Gibson's CEO Henry Juszkiewicz will join the Board of the new venture.

A website (www.zerocrossing.com) has been set up to provide information about the new entity, as it becomes available.

Opcode's Chief of Operations, Doug White has been appointed General Manager of Opcode, which will become a division of Gibson, allowing the company to fully realize the benefits and economies of scale that Gibson brings to the table. The rest of Opcode's Executive Staff will remain in place. Opcode's founder Dave Oppenheim will also remain with the company.

"This is a wonderful opportunity for myself and for the other founding members of the new company. It has been a privilege for me to be the President of Opcode for the last 11 plus years. When the company was founded none of us had any idea that the company would grow to be what it is today, a vital and well-respected leader in the music industry." states Halaby. "It is the right time for me start something new because the company is in great hands, and the prospects for the future are excellent."

"I am very excited about this new venture." states Juszkiewicz "The founding members of this new company are some of the best in the industry. Chris is a great person and I will look forward to his continued participation on Gibson's board as well as my participation on the Board of the new entity. At the same time I am also really excited by the great stuff we have in the works at Opcode for an industry that I am expecting to explode with new technology."

For more information, visit Gibson at http://www.gibson.com/