NEWS BRIEFS: [1]

Hewlett-Packard Co. {HWP} will begin selling a DVD-ROM-enabled Pavilion PC with MPEG-2 and AC-3 software decoding this fall. Packard Bell has selected a hardware decoding board from Diamond Multimedia Systems Inc. {DIMD} for inclusion in its Platinum PCs with DVD, which are expected to ship next month. HP's model 8190 will feature a double-speed DVD-ROM drive and a 300 MHz Pentium II and will probably hit retail in October. The Pavilion line is the first from a PC maker to feature Polk Audio speakers and the DVD model will also include a subwoofer. Other highlights are ATI Technologies Inc.'s Rage II graphics chip, a K56flex modem, wireless mouse, 48 MB of RAM, 2 MB of VRAM and a 6 GB hard drive. (HP, 408/553-2916; Packard Bell, 818/865-1555.) Pinnacle Systems Inc. {PCLE} signed a letter of intent to acquire miro Digital Video Products for approximately $21 million. Pinnacle believes miro's assets will help the company move forward in the non- linear editing hardware business and strengthen distribution in Europe and Asia. Expected to close in the quarter ending Sept. 30, the acquisition will include $15 million in cash, $5 million in Pinnacle stock and the assumption of $1 million in liabilities. If Pinnacle achieves certain sales and profit levels miro will receive additional money as part of the deal. Miro reported revenue of more than $35 million for the year ending June 30. (miro, 415/855-0940; Pinnacle, 415/526-1600.) Eleven additional DVD authoring facilities in the United States and Europe have become authorized to provide Macrovision Corp. {MVSN} DVD copy protection to rights owners, bringing the total number of Macrovision-approved facilities to 22 in five countries. The new facilities are Advanced Media Post, Electric Switch, Enterprise DVD, General Television Network, International Creative Digital Image SA, LBO Audiovisual Facilities, NOB Interactive, Optical Disc Media, PIMC, Storz Interactive Medien GmbH and The Richard Diercks Co. Additionally, JVC Disc America and Optical Disc Media have received authorization to produce Macrovision discs. (Macrovision, 408/743- 8600.) The 3DO Co. {THDO} received 3.2 million shares of its common stock from Matsushita Electric Industrial Co. in exchange for termination of some of the royalty rights 3DO had been granted in the $100 million sale of its M2 technology to the company in 1995. 3DO has given up the rights to develop and distribute software and peripherals that are compatible with M2 hardware. As part of the company's restructuring into a software-focused company, 3DO sold its hardware business to Samsung Electronics Co. in April for $20 million. (3DO, 415/261- 3000.) Ephyx Technologies, developer of the V-Active hotspot video authoring tool, has received $3 million in its second round of financing and gained John Sculley as an advisor and investor. In addition to Sculley, investors are Catalyst Partners, Gemini II of Israel and Nippon Systemware of Japan. (Ephyx, 415/439-8080 or 972/9956-3055 in Israel; see MMW, March 31, p. 1 for related story.) To help spur the market for PC photography an CD-R, Adaptec Inc. {ADPT} and MGI Software Corp. have entered a co-marketing and bundling agreement. Adaptec will include a special edition of MGI's PhotoSuite software with Easy CD Creator software for retail sales and OEM bundling with recordable CD (CD-R) drives. MGI will includes a special version of Easy CD Creator CD-R in retail packages of PhotoSuite and VideoWave. (Adaptec, 408/945-8600; MGI, 905/764-7000.) Harman International Industries Inc. {HAR} has ported its VMAx 3D VirtualTheater sound technology to Zoran Corp.'s {ZRAN} ZR38600. Harman's positional audio also is available in a software-only version and is being used in some Compaq Computer Corp. {CPQ} Presario models. (Harman Interactive, 408/494-0600; Zoran, 408-919-4111.)