SOURCE: WinSonic Digital Media Group, Ltd.

April 16, 2010 13:24 ET

WinSonic Digital Media Group, Ltd. Releases Business Update to Shareholders

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

ATLANTA, GA--(Marketwire - April 16, 2010) - WinSonic Digital Media Group, Ltd. (PINKSHEETS: WDMG) (www.winsonic.net) and WinSonic Digital Cable Systems Network, a facilities-based digital media company, release the following business update to shareholders.

The Company continues to focus their efforts on growing existing markets, identifying additional market opportunities, product development and reducing expenses. Management believes that in spite of difficulties in the current economic environment there are ample opportunities for future economic growth and corporate prospects remain excellent. At this time prospects for capital formation are best served by continued emphasis on growing the business and strengthening the balance sheet.

In response to this statement, WinSonic Digital Media Group (WDMG) has filed material events designed to expedite the accomplishment of these objectives. WinSonic Digital Cable Systems Network (WDCSN) spin off from the parent company (WDMG) as a separate, privately held corporation domiciled in the state of Maryland was the first material event. 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.

WDMG has entered into a agreement with a new organization noted as the WinSonic Group, LLC. The WinSonic Group is a separate entity headed by Winston Johnson that intends to retire or refinance the debt of WDMG as well as develop a new WinSonic Campus where network facilities for WDCSN will be domiciled including:

A 4 Acre complex including WinSonic Digital Cable Systems Network, Ltd. Broadcast Center, Super Computer Lab, Customer Care Support Service, WinSonic Home Entertainment, WinSonic International, WinSonic Electronics, WinSonic Studios, WinSonic Institute, WinSonic TV, WinSonic Music, WinSonic Publishing, and WinSonic Process Digital.

In addition to facilities development, the WinSonic Group will provide financial, advisory, and management services on all phases of the senior debt financing process as well as working with an Atlanta based CPA firm to complete the 10K 2008 Audit and 2009 first, second, and third quarter 10Q's. Included in the services will be preparation and presentation of a comprehensive private placement memorandum, solicitation of lenders and coordination with other financial advisors to complete the transaction. The WinSonic Group will oversee a debt capacity analysis and advisory services on establishing optimal capital structure parameters in connection with this transaction. In a coordinated effort, the WinSonic Group will work with WinSonic Digital Media Group, Ltd. on a share repurchase and stock buy back program. By repurchasing its own shares, the company intends to broaden opportunities for capitalizing strategic acquisitions that may become available. 

As negotiations with creditors of WinSonic Digital Media Group conclude, shares of WDMG common stock will be placed in the WinSonic Group escrow as the WinSonic Group reduces and retires debt. In exchange for investment capital, the WinSonic Group will receive restricted shares of common stock assigned to designated investors from the balance held in escrow. 

On April 13, 2010 an 8k filing stated a significant milestone in announcing the appointment of an interim Director of a three man Board of Directors to be nominated and voted upon at the next annual meeting of WinSonic Digital Cable Systems Network. Mr. John Bellamy has agreed to act as interim director until a full board is appointed. In addition to Mr. Bellamy's appointment, the 8k announced the WDCSN development and launch of a super computer cloud central office Lab with nationwide fiber optic network application development environments that exist in most carrier labs. WinSonic launched a pair of services targeted at building cloud applications and services.

"Cloud" computing is an emerging market opportunity that may be unfamiliar to many shareholders. The online dictionary "Wikipedia" defines cloud computing as:

"Internet-based computing whereby shared resources, software and information are provided to computers and other devices on-demand, like a public utility."

As a facilities based network, WDCSN (with the new campus) is 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) was approved to launch its national, digital TV transport network schedule in the first 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 the interest of WDMG 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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