SOURCE: DigitalMediaStocks.com; USA Video Interactive Corp.

February 22, 2007 09:00 ET

India's Film Industry Experiences Booming Success, but Escalating Problems of Movie Piracy Have Entertainment Sector Demanding Stronger Solutions

DigitalMediaStocks.com Investor Podcast: Ethnic Communications LLC Discusses Implementation of Digital Watermarking Technology From USA Video Interactive Corp. (OTCBB: USVO)

POINT ROBERTS, WA and DELTA, BC -- (MARKET WIRE) -- February 22, 2007 -- www.DigitalMediaStocks.com, an investor and industry news portal for the digital media sector, presents an exclusive investor podcast interview with Mr. Munish Gupta, Founder of Ethnic Communications, a firm that specializes in marketing, sales and promotion to niche ethnic communities worldwide. This discussion looks at the booming success of India's film industry and the need for stronger solutions against the rising problems of piracy. To help address the issues of movie piracy, Mr. Gupta, through Ethnic Communications, has an agreement in place with USA Video Interactive Corp. (OTCBB: USVO) (TSX-V: US), for the marketing of USVO's MediaSentinel, a digital watermarking anti-piracy technology, in India.

It is difficult to have a discussion these days regarding the film industry without mention of the dramatic success that India's Bollywood has realized. Indian filmmakers have not only created movie hits within India, but have also found success with several crossover titles and continue to produce the world's largest number of films.

As Mr. Gupta explains, "Bollywood is not just India, it is not just for local consumption, but Bollywood is also very voraciously consumed overseas. In addition, there is the ripple effect as Indian culture is quite akin to Middle Eastern and Eastern European culture making Indian cinema stars, Indian movies and Indian songs super hits throughout these regions."

However, as the film industry has grown to new levels, so has the problem of video and movie piracy. In fact, in India it is estimated that movie piracy basically nullifies theatre revenue after only 3 months, nearly half that of a typical U.S. theatrical window. This of course significantly cuts into the film industry's bottom line. As a result the Indian government has made dealing with piracy a priority.

"The Indian government takes the issue of piracy very seriously in response to outcries from the film industry in India, as well as in Hollywood where producers are waking up to the fact that they need to control this issue. The problem has actually escalated since the birth of digital media, which has made movie piracy more accessible and easier than it had been in the past thus working against the film industry. As a result, the government has attached strict penalties for proven offenders."

In addition to the public support from law enforcement and government agencies, a key driver to the increased attention on issues of piracy has come from the industry itself that has felt the financial sting of this problem, opening the door and the industry to new methods of content protection.

"With producers crying foul and distributors upset at losing money to piracy, we felt that it was the right time, and the right opportunity to begin marketing USA Video's product for digital media. We wanted to introduce the technology to the market to allow producers to put something on the product that would make the pirate think twice because now he could be caught right away since the producer and distributor would have sufficient proof of any infringement to present to law enforcement," describes Mr. Gupta.

"Anyone who pays attention to USA Video's watermarking technology can see that it is a simple solution that can serve as a significant deterrent to piracy. It is an extremely cost-effective and time-efficient product that would serve well within the Indian film industry. It basically lays a watermark on the film that allows it, only through a certain reader, to be discovered when the producers or distributors want to demonstrate to the law enforcement authorities their claim to rightful copyright ownership," adds Gupta.

To Listen to the Full Online Interview Click Here: http://www.DigitalMediaStocks.com/Audio/USVO/0207b/default.asp

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USA Video Interactive Corp. (OTCBB: USVO) (TSX-V: US) designs and markets technology for delivery of digital media. The Company's products add anti-piracy solutions to existing distribution channels and extend distribution into interactive channels with Video-on-Demand. For More Info: http://www.digitalmediastocks.com/CO/USVO/

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