MARLBORO, Mass. — Targeting the fast growing Internet Video and DVD markets, Media 100 announced yesterday that it has entered into a definitive agreement to purchase Terran Interactive, Inc., a leading supplier of software tools for high-quality Internet and DVD video.

Terran has grown rapidly since its founding in 1995 by supplying film studios, news organizations, game developers, video post-production houses and corporate Web site designers with tools for formatting and encoding high-quality video for playback from CDs, DVDs and Web sites, John Molinari, CEO of Media 100, said.

Dana LoPiccolo-Giles, president of Terran Interactive, said that Terran’s expertise in the video encoding and streaming market coupled with Media 100’s experience in real-time video processing will introduce accelerated versions of Terran’s products for faster and easier delivery on Web sites and DVD.

Molinari said Media 100 plans to operate Terran as a wholly owned subsidiary of Media 100.

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