SOURCE: Encounter Technologies, Inc.

April 12, 2010 09:43 ET

Encounter Technologies, Inc. (ENTI) Releases Monthly Subscription User & Gross Revenue Projections for Its Flagship Site MusicMatrx.com

NEW YORK, NY--(Marketwire - April 12, 2010) -  Encounter Technologies, Inc. (PINKSHEETS: ENTI), today announced subscription users and gross revenue projections information for the quarters ending September 30, 2010, December 31, 2010, March 31, 2011, and June 30, 2011.

Encounter Technologies, Inc. (ENTI) projects its MusicMatrx.com site to have a total of over 826,442 monthly subscribing users and $20,204,142 in gross revenue by June 30, 2011. Encounter Technologies, Inc. (ENTI) recently completed the integration of its music store with over 7 million songs for sale on the beta version of its MusicMatrx.com site, and is planning its official launch for June 1, 1010.

Encounter Technologies, Inc. (ENTI) indicated that these projections are conservative and very possibly given the size of the market will be overshadowed by actual numbers. These projections assume a conversion of less than 1% of its marketing campaign's reach. Their current media campaign is set to run for eight months and reach over 100 million homes in the US during that time.

The two main sources of revenue for the site will be their "gold" and "platinum" monthly subscription memberships which are priced at $9.95 and $14.95 per month and gives users access to their own profile, video editor, storage space, songs, and ability to participate in the much anticipated video remixing contests as well as be compensated for successfully marketing music for participating artists.

  Three Months Ending   Three Months Ending   Three Months Ending   Three Months Ending
  September 30, 2010   December 31, 2010   March 31, 2011   June 30, 2011
               
Total Paying Users:              
End of Period 40,000   109,760   301,181   826,442
Net Additions 40,000   69,760   191,421   525,260
Gross Revenue:              
Gold $599,400   $1,951,327   $5,354,441   $14,692,585
Platinum $224,850   $731,992   $2,008,585   $5,511,558
Total Revenue              
End of Period $824,250   $2,683,318   $7,363,026   $20,204,142
               
               

Encounter Technologies, Inc. (ENTI) President Richard DiBiase stated, "We have a lot invested into this site and we have all the right players working with us. We have found a void within the social networking market and have a solid product which we look forward to offering to thousands of music enthused teens and professional videographers around the world. This site will push the creative envelope for years to come and we are positing it to be a grooming ground for record labels and marketing & advertising agencies worldwide. This site will not only be a destination for entertainment, it will be a professional resume builder for young entrepreneurial minds."

About MusicMatrx.com

On MusicMatrx.com, users are able to participate in music video editing competitions in order to win both prizes and recognition. Encounter Technologies, Inc. (ENTI) has developed a cutting edge, innovative, and simple to use platform for MusicMatrx.com which facilitates the video uploading, editing, sharing, and viewing experiences. By creating an environment which rewards both innovation and creativity, users are given the incentive to implement their own unique online marketing campaigns in order to expose a particular artist or song to populations and demographics not typically reached through standard mass campaigns.

About Encounter Technologies, Inc. (ENTI)

Encounter Technologies, Inc. provides end-to-end technology and online marketing services, including design, build, hosting, and online marketing support. We specialize in social media, video technology, and online entertainment web solutions. Encounter Technologies, Inc. utilizes their pre-built applications to provide the platforms in which to base solutions for businesses looking to utilize video technology to increase online collaboration and interaction. Our goal is to provide our clients with the best methods to increase user value and achieve desired business results. Simply put, Encounter Technologies, Inc. transforms ideas into revenues. For more information about Encounter Technologies, Inc., visit www.encountertech.com.

Forward-Looking Statements

This news release includes "forward-looking statements" for the purpose of the "safe harbor" provisions within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and rule 3(b)-6 under the Securities Exchange Act of 1934, as amended. Any statements made in this news release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including statements that may relate to our plans, objectives, strategies, goals, future events, future revenues or performance, capital expenditures, financing needs and other information that is not historical information. These forward-looking statements often include words such as "anticipate," "expect," "suggests," "plan," "believe," "intend," "estimates," "targets," "views," "projects," "should," "would," "could," "may," "will," "forecast," and other similar expressions.

These forward-looking statements or projections are based on reasonable assumptions at the time they are made, including our current expectations, plans and assumptions that have been made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Forward-looking statements or projections are not guarantees of future performance or results. Actual financial results, performance or results of operations may differ materially from those expressed in the forward-looking statements and projections. Factors that may materially affect such forward-looking statements and projections include:

- the highly competitive nature of our industry;
- current and planned marketing and sales initiatives;
- the rapid technological changes in our industry;
- the current economic slow down or recession continuing in the United States;
- the state of the capital markets and the United States economy;
- our exposure to counterparty risk in our financial agreements;
- our ability to maintain adequate customer care and manage our churn rate;
- our ability to achieve planned growth rates;
- our ability to manage our rapid growth, train additional personnel and improve our financial and disclosure controls and procedures;
- our ability to secure the necessary spectrum and network infrastructure equipment;
- our ability to maintain and upgrade our networks and business systems;
- our ability to adequately enforce or protect our intellectual property rights and defend against suits filed by others;
- governmental regulation of our services, and the costs of compliance and our failure to comply with such regulations;
- our capital structure, including our indebtedness amounts;
- changes in consumer preferences or demand for our products;
- our inability to attract and retain key members of management;
- the performance of our suppliers and other third parties on whom we rely; and
- other factors described or referenced from time to time in our filings with the Securities and Exchange Commission.

The forward-looking statements and projections speak only as to the date made, are based on current expectations, and are subject to and involve risks, uncertainties and assumptions, many of which are beyond our ability to control or ability to predict. You should not place undue reliance on these forward-looking statements and projections, which are based on current expectations and speak only as of the date of this release. Encounter Technologies, Inc. is not obligated to, and does not undertake a duty to, update any forward-looking statement or projection to reflect events after the date of this release, except as required by law. The projected results for the quarters listed above may not be reflective of results for any subsequent period. Encounter Technologies, Inc. does not plan to update nor reaffirm guidance except through formal public disclosure pursuant to Regulation FD.

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