SOURCE: ESPRE Solutions, Inc.

July 11, 2007 09:30 ET

ESPRE Solutions, Inc. Releases Q2 2007 Corporate Update

PLANO, TX--(Marketwire - July 11, 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 Q2 2007 Corporate Update announcing updates on current engineering and business development initiatives as well as reporting another record quarter for 2007.

REVENUE: The second quarter of 2007 produced revenues of another $1.5 million to bring the six months total to $3 million which is approximately double last year's total for the entire year. Pete Ianace, CEO and President of ESPRE Solutions, states, "Our strategy is to develop partnerships in multiple market segments. Last year, ESPRE established the first of these partnerships addressing the online classifieds market with a partnership with Media Distribution Solutions, Inc. In the second quarter, we closed two additional partnerships in two unique, multi-billion dollar market segments including the online collaboration and entertainment markets. We are very excited that this segmented approach to introducing and releasing the ESPRE technology to the market has picked up pace and the strategy is propelling ESPRE towards our goal of sustainable revenue and profit growth. Furthermore, the hurtles for acceptance of ESPRE's technology that were real challenges in previous years are now all but non-existent, therefore making the lead time for new partners much shorter."

In an effort to improve ESPRE's vertical market strategy, the company made a strategic decision to restructure its license agreement with Media Distribution Solutions (MDS) and as a direct result of this move, ESPRE has dramatically effected the company's stake in several very substantial markets including: online social networking, business collaboration and the sport & entertainment industries. The restructuring has provided ESPRE with an equity position in these markets with new partnership agreements (see License Agreements) and increased future revenue potentials, as well as increased the number of marketing channels distributing ESPRE's technology -- therefore, increasing reach and market share. From an accounting standpoint, this move will likely have the effect of deferring some of ESPRE's anticipated Q4 revenues while increasing long-term projections. Due to ESPRE's improved financial position, ESPRE's management has determined that the company is better off deferring the pursuit for a license agreement for the online distance learning market, and its related anticipated short-term revenue, and rather dedicates ESPRE resources towards building a more marketable working model. Pete Ianace states, "By deferring some foreseeable immediate upfront revenues from a license agreement for the distance learning market, we believe we can greatly improve our longer term return for this market in building a more robust product offering around the specific market."

In addition to signing additional vertical market partnerships during the remaining quarters, ESPRE has started the process of becoming a fully reporting company. ESPRE's management has dedicated the necessary resources, and funds, in an effort to complete this process as soon as possible.

LICENSE AGREEMENTS: On May 15, 2007, SureCast Media, an entertainment software service provider based in Geneva, Switzerland, signed a License Agreement with ESPRE for the Entertainment Market. Per the terms of the agreement, the market is defined as professionally produced, pre-recorded video content such as feature-length movies, sports reproductions, and IPTV. This deal was made possible following a separate agreement with Media Distribution Solutions (MDS), who had previously licensed ESPRE's technology for the online classifieds, social networking and online entertainment markets. MDS sold back rights for entertainment and social networking to ESPRE in order to focus on video enabling the online classifieds industry, in which MDS has successfully signed three major publishing partners.

Exact financial terms of the deal are protected under a non-disclosure agreement, however high-level terms include a substantial down payment paid by SureCast Media upon signing, with an additional payment due upon the first product release, target for Q4 2007.

On June 14, 2007, ESPRE announced it had signed a License Agreement and Development Contract with Blideo, Inc., an online business collaboration service provider based in Plano, Texas. Specifically, Blideo is launching an unique online collaboration service for business professionals to communicate using ESPRE's best-of-breed live video conferencing and video streaming solutions. The official business model for Blideo has yet to be released to the public, however interested parties can sign-up for the BETA expected for release Fall 2007 by visiting

Terms include a substantial equity stake in Blideo for ESPRE, an on-going application development contract in excess of $1 million for custom application development, and an ongoing royalty made up of subscription sales and advertising revenue generated by the Blideo network. The remaining financial terms of the agreement remain protected under a non-disclosure agreement at this time.

BUSINESS DEVELOPMENT: The first quarter of 2007, ESPRE announced it had signed a License Agreement with Global IP Solutions (GIPS), and that on February 23, 2007, GIPS had released their integrated version of ESPRE's LSVX CODEC to several of their customers for evaluation. To date, nearly 30 evaluations are in place and it is expected that customers of the integrated solution will be announced soon.

In the last couple of investor updates, Pete Ianace has 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. To date, ESPRE has completed and delivered on one major carrier agreement and is expected to sign with that same carrier, yet with a entirely different division, another significant contract. The second initiative will be sourced through ESPRE's carrier partner, Anyware Mobile Solutions, a mobile technology solutions provider servicing the carrier industry and based in Tulsa, Oklahoma. Currently, both of these initiatives are under strict non-disclosure and the terms and markets they addressed cannot be released at this time. However, the underlying technology for each of these initiatives is ESPRE's new ESPRE LIVE communications platform, which will permit our carrier partners to deploy live video conferencing between a PC, wireless handheld device and a set-top box. ESPRE rolled out the technology at the Wainhouse Research Collaboration Summit in San Francisco, California on June 5, 2007. During the summit, Pete Ianace presented the ESPRE LIVE video platform which incorporated live video conferencing, video messaging, video streaming and a video presentation module all running on the same screen over a multiple environments, including a wireless device (in this case an UMPC device).

Looking forward to the balance of this year, ESPRE will focus on continuing its quest for strategic partners and on building our existing partners' video offerings for launch in early 2008. We are working with major industry players in two critical markets which we anticipate being able to report significant progress on over the coming months and next year. These initiatives will include further deployments of the ESPRE LIVE real-time video collaboration platform for service providers in the IPTV and live video delivery markets.

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' ESPRE LIVE™ 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


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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