SOURCE: ESPRE Solutions, Inc.

April 19, 2007 11:36 ET

ESPRE Solutions, Inc. Releases Q1 Corporate Update: Reporting Record Revenue First Quarter

PLANO, TX -- (MARKET WIRE) -- April 19, 2007 -- ESPRE Solutions, Inc. (PINKSHEETS: EPRT), a Dallas-based media solutions and technology company with a revolutionary and patented video compression technology, today released its Q1 Corporate Update announcing a record first quarter as well as insight on corporate initiatives for the upcoming quarters.

REVENUE: ESPRE Solutions generated record 2007 Q1 revenues with over $1.5 million in licensing and development revenue. Expectations for the second quarter are forecast to continue this record pace, with current projections estimating Q2 revenues between $1.6 and $2.2 million. Pete Ianace, CEO & President of ESPRE Solutions, states, "Earlier this year, ESPRE announced its 2007 revenue was forecast to reach $10 million and ESPRE would reach positive cash flow by the end of the year. We remain committed to this forecast and this past quarter is a strong indicator that ESPRE is well on its way toward achieving its revenue goals."

LICENSE AGREEMENTS: On March 20, 2007, Global IP Solutions (GIPS), which licensed ESPRE's LSVX Video CODEC earlier this year, announced that it has successfully integrated ESPRE's technology and made the GIPS LSVX integrated solution available for evaluation by its customers. According to Gary Hermansen, President and CEO of Global IP Solutions, "GIPS LSVX has been incorporated into our existing multimedia engines allowing real-time video and voice communication. GIPS is offering the best real-time video communication available in today's market. GIPS' success with voice is now being achieved with real-time video communication and we have sent out our first shipments for evaluation." With regards to GIPS, Pete Ianace states, "This relationship with GIPS will further ESPRE's reach by potentially placing ESPRE's LSVX Video CODEC on more than 100 million desktops. Additionally, ESPRE expects to announce in Q2 several new license arrangements on the scale of the GIPS agreement. The details of these agreements will be released upon contract signing."

TECHNOLOGY: Leveraging an already best-in-class LSVX Video CODEC, ESPRE began in Q1 to extend its video encoding technology with initiatives in a couple of new directions. First, ESPRE began work on a new video CODEC with a targeted release date near early June 2007. The new CODEC version will provide enhanced support for set-top box and mobile device platforms, featuring digital signal processor (DSP) deployment packages (i.e. Texas Instruments' DaVinci and C6000 series). Second, a new rate scalable video CODEC, LSRS, based on ESPRE's patented wavelet-based compression technology, is targeted for release in early September to capitalize on the technological advances inherent in a pure wavelet implementation. "The rate scalable features include the capability to play at many different bandwidths using a single encoding, saving our customers a great deal of resources and time when encoding vast libraries of content. The DSP initiatives will make it very easy for both hardware manufacturers of wireless handheld devices and set-top boxes to integrate the ESPRE offerings," states Bob Nimon, CTO of ESPRE Solutions. ESPRE expects its DSP initiatives will position ESPRE for hardware partnerships with well-known brands as it provides a complete, cross platform, end-to-end solution for these carrier initiatives.

BUSINESS DEVELOPMENT: In ESPRE's last investor update, Pete Ianace suggested that one key milestone that ESPRE investors should look for in 2007 is ESPRE's ability to sign a contract with a major U.S.-based telecommunications carrier. Ianace states, "We have completed one major carrier agreement and expect to be awarded another opportunity with the same carrier later in Q2 2007." At this time, ESPRE is under strict non-disclosure with this carrier partner and cannot publish details of the relationship. Ianace continues, "We are on course to complete the development of a comprehensive communications platform that will permit our carrier partners to deploy live video conferencing between a PC, wireless handheld device and a set-top box. Initially, ESPRE's carrier focus will remain in the U.S., which has over 228 million wireless subscribers deployed as of January 2007. Underlying this carrier focus is ESPRE's commitment towards providing carriers with new service offerings including ESPRE's wireless business quality video conferencing solutions which will perform over multiple devices, platforms and IP networks -- a first in the market today."

In summary, Ianace states, "ESPRE continues to pursue partnerships in key market verticals. Partners have been identified in three key markets including: Enterprise Collaboration, Mobile Video Applications and Distance Learning. With regards to these markets, ESPRE expects to make partnership announcements in two of these key target markets later in the second quarter. These partnerships will contribute license revenue as well as contract engineering services since ESPRE will be contracted to build the final applications for each particular market segment. In all cases, ESPRE shall have an equity position that will add meaningful assets to ESPRE's balance sheet."

About ESPRE Solutions, Inc.:

Plano, Texas-based ESPRE Solutions is a public company (PINKSHEETS: EPRT) and groundbreaking media collaboration solutions provider that fulfills the promise of TV-quality, real-time and streaming video over the Internet -- even at dial-up speeds as low as 28Kbps. ESPRE Solutions intends to be the video solutions provider of choice for Internet Service Providers, Enterprises, application developers, communications hardware vendors and chip manufacturers, by providing both narrowband and broadband video solutions for integration into traditional voice and data applications. ESPRE Solutions' eViewMedia Engine™ provides an integrated toolkit solution for developers to create applications for business and personal communications. To learn more about ESPRE Solutions, or to experience the company's pioneering eView technology, visit www.espresolutions.com.

SAFE HARBOR

Forward-looking statements made in this release are made pursuant to the "safe harbor" provision of the Private Securities Reform Act of 1995. Forward-looking statements made by ESPRE Solutions, Inc. are not a guarantee of future performance.

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