SOURCE: WinSonic Digital Media Group, Ltd.

June 21, 2010 11:58 ET

WinSonic Digital Cable Systems Completes Bridge Financing Line of Credit

WinSonic Digital Cable Systems Network Commences Restructuring Efforts; The Effort to Restructure WinSonic Digital Media Group, Ltd., by Debt Reduction and Maximizing the Value of Corporate Assets Is Aggressively Pursued

ATLANTA, GA--(Marketwire - June 21, 2010) -  WinSonic Digital Media Group, Ltd. (PINKSHEETS: WDMG) ( and WinSonic Digital Cable Systems Network, Ltd. (WDCSN), a facilities-based digital media company, announced the completion of an agreement providing bridge financing dedicated to the launch of WinSonic Digital Cable Systems Network, Broadcast Center, Super Computer Lab, and Customer Care Support Services. Terms of the loan facility call for the investment group to become majority shareholders in WDCSN. Included with their acquisition of a controlling interest is the right to appoint two directors to the board of WDCSN. The investment group has commenced assisting WinSonic Digital Cable Systems Network in recruiting and appointing key management and technical positions as well.

WinSonic Digital Media Group (WDMG) is in the process of making material event filings designed to expedite the accomplishment of these objectives. WinSonic Digital Cable Systems Network (WDCSN) is a privately held spin off from the parent company, domiciled in the state of Maryland. By establishing WDCSN as a separate entity, significant cost savings were achieved as well as enhancing the opportunity to attract direct investment into the new corporation.

Additional actions were taken by WDMG to provide maximum flexibility in using the capital structure of the treasury to restructure or eliminate debt.

Also, proceeds from the line of credit will provide an additional investment in equipment and expertise to build and manage WinSonic Digital Cable System Networks.

WinSonic Digital Cable Systems Network will activate on-demand services for all major formats including real time broadcast, HDTV, 3D, Adobe Flash, MAP audio, QuickTime, Real Networks Real Player, Windows Media and iPod compatible. WinSonic strategic initiative now establishes WinSonic services available to local, global, and wireless networks, i.e. Verizon, Cogent, Sprint, AT&T, Tulix, Time Warner, and Comcast; thereby, capability is created to cross all new platform standards for delivery of digital media.

"This funding plays a critical role in facilitating WDCSN's transition from a development stage company to a full operating company. We anticipate revenue from the launch of these projects in the fourth quarter of 2010. Throughout this transition, WinSonic will maintain its heritage of innovation, service, quality, reliability and integrity. We shall continue to provide the level of services our customers and the market have come to demand," said Winston Johnson, Chairman & CEO of WinSonic.

As a facilities based network, WDCSN is now uniquely positioned to offer products and services to corporations, government agencies and private individuals interested in capitalizing on efficiencies and benefits derived from this emerging market for advanced super computing services. WinSonic Digital Cable Systems Network (WDCSN) will now launch its national, digital TV transport network schedule in the third Quarter of 2010. WDCSN will offer an extensive content library with transport rights from top national programmers, cable networks, linear programming, established music libraries, and Video on Demand (V.O.D.) rights from major Hollywood movie studios. "Working with our partners, WDCSN will offer solutions completely dedicated to the highest quality digital delivery of television, video and music content to our client subscriber base," said Winston Johnson, CEO of WinSonic Digital Media Group, Ltd. "Our network has been focused solely on digital video, digital music and digital television services. We have structured our product offerings in a manner that optimizes the experience for both network and customer subscribers." WinSonic Digital Cable Systems Network has secured contracts for digital video, digital music, and digital television distribution services.

In addition to previous announcements, WinSonic Digital Cable Systems Network and VIPMEDRX have teamed up to deploy a chronic disease management system on the WinSonic Digital Cable Systems Network. VIPMEDRX offers a chronic disease management system that coordinates care of patients with diabetes, hypertension, asthma and other chronic diseases with their physicians. WinSonic Digital Cable Systems Network & VIPMEDRX product is the initial product offering providing online tools for self management, education and social networking enabling doctors to coordinate care with patients in their homes or community based kiosks.

Our clients are healthcare providers, payers and/or patients who seek to lower healthcare costs without compromising quality. This is accomplished through efficient management of chronic disease treatment by increasing the accessibility of medical information and treatment online.

The online chronic disease management market is growing rapidly and is currently projected to exceed $25 billion annually. The market is virtually untapped with less than 5% of the needs of chronic illness patients addressed. The United States represents approximately 60 - 70 % of this market. General Electric, Phillips, Microsoft, SUN, Intel, Cerner, McKesson and other fortune 500 companies are currently seeking to penetrate this market; however there is no dominant, full service health information technology company offering a comprehensive chronic disease management product. The federal government has set the bar for physicians and healthcare payers to manage patients more closely, particularly those with chronic diseases. One way this is accomplished is by linking reimbursement directly to their ability to coordinate and provide care outside of the physician's office.

The stage is set for the exponential growth of online management products offered by WinSonic and VIPMEDRX.

"WinSonic Digital Media Group is aggressively pursuing actions that should offer encouragement to shareholders and the investment community," said Winston Johnson, Chairman and CEO of WinSonic Digital Media Group, Ltd. The WinSonic Digital Media Group has implemented steps that reduce in percent ownership in WinSonic Digital Cable Systems Network. "Restructuring is believed to increase the value of WDCSN sufficient to offset dilution from the transaction. As a consequence of these efforts we believe the two companies will allow the market to more accurately assess the value of our assets and market opportunities. We continue to work aggressively toward that end," said Mr. Johnson.

About WinSonic Digital Media Group, Ltd.

WinSonic Digital Media Group, Ltd. is a facilities-based media distribution solutions company with a distinctive video transport concept that enables users to view, interact, and listen to all types of audio, online video, and digital TV, in full-screen format, at high speeds, superb quality, and greatly reduced costs, while reducing the need for expensive high-speed connections. Statements in this press release are certain statements which are not historical or current fact and constitute "forward-looking statements" within the meaning of such term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual financial or operating results of the company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such forward-looking statements including, but not limited to, our aggressively focus on customer growth and leveraging its relationships with major corporations into revenue growth opportunities, based on our best estimates of future results, performance or achievements, based on current conditions and the most recent results of the company. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "opportunity," "believes," "belief," "expects," "intends," "estimates," "anticipates" or "plans" to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the company's reports and registration statements filed with the Securities and Exchange Commission. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and there can be no assurance that the actual results anticipated by the company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the company or its business or operations.

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