Even Technologies Inc.

Even Technologies Inc.

September 23, 2005 19:17 ET

Even Technologies Signs Major Contract with IP Media Services to Launch Revolutionary Online Media Service Using PSI_V™ Smart Compression

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 23, 2005) - Even Technologies ("Even") (TSX:ETI) has signed a contract with IP Media Services to deliver full screen global TV on demand through Bestfrontseat.com. The website will use Even's PSI™ video compression to deliver full screen video entertainment over the Internet. IP Media Services plans to launch this new service in November 2005. The market for these services is estimated by Informa to be US$10 billion by 2007.

Stephen John, Managing Director of IP Media Services, comments, "Thanks to the development of Even Technologies' advanced compression process, we anticipate first year revenues to be a significant entry into the USD$10 billion streaming video market." Under the terms of the agreement, Even holds a 25% equity in IP Media Services and will also earn a 10% license royalty on IP Media Services' gross revenues. The licenses have been granted in four renewable terms of three years.

The completion of this contract is made possible by Even's extensive line of robust decoder applications, including plug-ins for Real, Windows Media (Direct Show) and QuickTime. The contract calls for multiple seat licenses for the PSI_V™ software decoders and encoders and includes the sale of multiple dme™ Real Time Hardware Encoders for live streaming. The hardware encoders will allow IP Media Services to provide pristine video quality for live streaming of concerts, sports and special interest events. IP Media Services expects live streamed events to generate the bulk of revenue from the website.

This contract marks an important step in Even's strategic commercialization of advanced compression products. Mr. John adds, "Our deployment of the Even Technologies system is about to change the way TV is presented, watched and enjoyed and we are doing it globally; for the first time, viewers will enjoy the picture quality of fullscreen television combined with the interaction of the World Wide Web."

Using PSI™ compression from Even Technologies, Bestfrontseat.com can instantly deliver program catalogues and convert any regional TV station into a global network. Bestfrontseat.com will deliver always on demand, fully interactive TV over the world's largest Internet network. The programming is delivered to over 15,000 edge servers around the world, allowing access to the programming at a rate of 160,000 new viewers per second. Even is thrilled to have made this exciting new service possible and looks forward to the launch of Bestfrontseat.com in November of this year.

Even also advises that it will not be proceeding with the private placement announced on July 22, 2005.

Instead, Even has arranged a brokered private placement of up to 2,333,333 units and a non-brokered private placement of up to 4,333,333 units at $0.30 per Unit for gross proceeds of approximately $2 million. Each Unit is comprised of one common share of Even and one transferable share purchase warrant. Each warrant entitles the holder to purchase one additional common share of Even for a period of 24 months from the closing date at a price of $0.55.

In terms of the brokered private placement, Even has agreed to pay a finder's fee consisting of a corporate finance fee of $10,000, a cash commission equal to 8% of the gross proceeds raised, and share purchase warrants (the "Agent's Warrants") to acquire that number of common shares as is equal to 10% of the number of Units sold pursuant to this private placement. Each Agent's Warrant entitles the Agent to acquire one common share of Even for a term of 24 months from the date of closing at a price of $0.35 per common share.

Proceeds from the private placement will be used to fund product development of the Even technology and for general corporate purposes and operating expenses.

The private placements are subject to regulatory approval.

About IP Media Services Ltd.

IP Media Services Ltd. of Kingston upon Hull, England specializes in the delivery of media content over the Internet. They have developed a specialist database to handle the control and delivery of video content from the website to the end user. In November of 2005, IP Media Services will launch "Bestfrontseat.com", the only truly complete solution able to provide the long awaited global TV on demand.

The company currently operates a demonstration website and has extensive access to expertise in content distribution, encryption and databases. Bestfrontseat.com has also developed talking browsers and programmable key-press navigation designed to assist partially sighted visitors in finding and enjoying high quality, full screen video experiences. Their unique global server development is a first in the United Kingdom, giving Bestfrontseat.com the capacity to handle near record levels of visitor acceptance per second.

About Even Technologies Inc.

Even Technologies Inc. (EVEN) is a Vancouver-based company specializing in advanced digital image and video coding techniques and in the development and integration of high-performance systems for media content production and dissemination over broadband networks. Since its inception in 1997, EVEN has developed its next generation general-purpose still image (PSI_X™) and video (PSI_V™) coding engines as well as a number of commercial systems including a facial image coding system, a digital media coding studio and an IP-network television content dissemination system.

Even has implemented this technology in a family of products designed for peak performance and flexibility. The PSI_V™ codec is the most technologically advanced video compression engine on the market, capable of visual DVD quality at 700kbps. The technology also allows Video on Demand and Video Streaming over existing telco wire line. Even's sustainable competitive advantage lies in the patent protected technologies developed for use in their revolutionary line of compression products. This technology enables file savings of 30-40% over the competition, while producing images of much higher quality. The technology has evolved, and will continue to evolve, to maintain Even's position at the forefront of compression technology.

Any content, anywhere, anytime.

On Behalf of the Board of Directors:

Nick Ringma, Director

Copyright (C) 2005 Even Technologies Inc.™, EVEN™, PSI™, dme™ and other marks, names, logos and icons identifying Even Technologies Inc. and Even Technologies' products and services referenced herein are trademarks or registered trademarks of Even Technologies Inc. All other company, product and/or brand names or marks are the trademarks of their respective owners.

Certain statements contained in this document, including statements regarding events and financial trends that may affect our future operating results, financial position and cash flows, may constitute forward-looking statements within the meaning of the federal securities laws. These statements are based on our assumptions and estimates and are subject to risk and uncertainties. You can identify these forward-looking statements by the use of words like "strategy", "expects", "plans", "believes", "will", "estimates", "intends", "projects", "goals", "targets", and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts. We wish to caution you that such statements contained are just predictions or opinions and that actual events or results may differ materially. The forward-looking statements contained in this business plan are made as of the date hereof and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ materially from those projected in the forward-looking statements. Where applicable, we claim the protection of the safe harbor for forward-looking statements provided by the (United States) Private Securities Litigation Reform Act of 1995.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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