SOURCE: KOCH Records

September 09, 2005 18:28 ET

KOCH Records Picks SunnComm as Its CD Protection/Content Management Vendor

NEW YORK, NY -- (MARKET WIRE) -- September 9, 2005 -- KOCH Records announced today that it has selected SunnComm International (OTC: SCMI), creator of MediaMax™ as their supplier of audio CD content protection and enhancement technology products. After reviewing all the viable technology vendors in this market segment, KOCH Records has chosen the MediaMax products from SunnComm to protect their content.

Bob Frank, President of KOCH Records, stated, "CD piracy due to casual copying is an issue that the music industry can't ignore." SoundScan CD sales reports indicate that a normal sales "drop-off" for unprotected releases of major and developing artists during Week 2 and Week 3 of a release typically range between 50% and 60% compared to first week sales. A significant component of this weekly sales decline is caused by "casual" copying. When consumers copy new unprotected CD releases for their friends who, in turn, make unprotected copies for other friends, it creates a continual cycle of unauthorized distribution of the content. Casual piracy has the potential to grow exponentially and cause a significant number of unauthorized copies to be distributed illegally into the marketplace, thereby negatively impacting the sales cycle for the label, publisher, artists, retailers and music distributors.

Mr. Frank went on to say, "It is our opinion that copy protection with a secure burn feature is an answer to the casual copying problem. Secure burn technology provides limits on the number of legal copies the music fan can make, which will be used to increase our sales results. We believe that SunnComm's MediaMax technology with Secure Burn™ has been very well received in the marketplace and will be welcomed by our music customers, our shareholders and of course our music retailers as a solution they can embrace. We recognize the undeniable success that MediaMax protected CDs have had with some of the industry's largest releases from major label artists. KOCH Records is making its move now to protect our content as well."

KOCH Records, the largest independent record label, has chosen MediaMax after a comprehensive review of commercial audio CD copy protection and security products. Often referred to as the fifth major label within the global record industry, KOCH Records had more of Billboard's charting albums in 2001 - 2004 than any other independent record company. In August 2004, KOCH Records chose to include SunnComm's MediaMax technology on the most recent album from Boyz II Men named "Throwback." KOCH will utilize the technology on upcoming releases from BG, D-Block, Black Ice and M1.

Mr. Frank points out: The RIAA has placed its focus and attention on unauthorized CD burning over the last few weeks with input from many key players in the music industry. The group is committed to seeing methodologies adopted in the marketplace that will help eliminate this form of piracy. Industry experts were quoted last week as saying, "Copying music to CDs is becoming a bigger threat to record stores' and music labels' bottom line than online file-sharing." A report compiled by the NPD Group found that "Burned" CDs accounted for 29 percent of all recorded music obtained by fans in 2004, compared to 16 percent attributed to illegal digital downloads from unauthorized online file-sharing networks. The report went on to suggest that about half of all recordings obtained by music fans in 2004 were due to authorized CD sales and about 4 percent from paid music downloading services.

Bill Whitmore, president of MediaMax Technologies, said, "Our company exclusively represents the SunnComm MediaMax technology throughout the world. The most important message we convey is that the products were developed to protect digital content while keeping the consumer experience in mind and achieving a mutually beneficial balance in a controlled environment. Music buyers can opt to have legal and licensed access to their favorite music while storing it in a secure manner. This allows the customer to listen to music, copy tracks to their computer, move content to a compatible portable player, share a music mail copy of a song with a friend by e-mail and even make a limited number of Secure Burn CDs for personal use. These features and MediaMax's flexible functionality are designed to offer the consumer an empowering alternative to violating the copyrights of their favorite artists while enjoying many additional 'bonus' features."

Artie Ripp, industry consultant for MediaMax Technology Corporation (OTC BB: MMXT), has been involved in all aspects of the development of this strategic partnership with KOCH Records. Mr. Ripp mentioned, "SunnComm's MediaMax products have turned out to be the very best CD Copy Protection and Content Management product available in the market to date. This solution is acceptable to music fans and has enabled artists and record labels the very best method available to help fight casual piracy and unauthorized CD Burning."

Bob Frank concluded, "It is important to acknowledge leadership with any new initiative that significantly impacts the marketplace. We would like to applaud Michael Smellie and Thomas Hesse from Sony BMG for their efforts to take action at the forefront of the copy protection battle. They had the vision and unwavering diligence to take on every legal and political challenge presented by copy protection products in the U.S. market. The technical team at Sony BMG set the highest standard for this initiative and collaboratively worked to bring the right solution to market. The Sony BMG team was not comfortable with a 'do nothing' attitude. They helped develop and field test the MediaMax product so other companies like KOCH Records could positively move forward and productively join them in the effort to respect the copy rights of the artists."

ABOUT KOCH RECORDS

KOCH Records is a division of KOCH Entertainment, the leading and fastest-growing independent music company in the U.S. The KOCH Entertainment corporate umbrella encompasses record and video labels as well as distribution companies in the U.S. and Canada. They are the market leader among independent labels and distributors in both the U.S. and Canada. KOCH Records proudly claims the largest number of Billboard charting albums among independents for the period 2001 - 2004. For additional info on the KOCH Records label and its roster of artists, please visit www.kochrecords.com

ABOUT SUNNCOMM

In just five years, SunnComm International Inc. (OTC: SCMI) has become the leader in digital content enhancement and security technology for audio compact disc media. MediaMax can be found on many Gold, Platinum and Double-Platinum selling Albums including Dave Matthews' Platinum-selling, "Stand Up" and most recently, Foo Fighters, "In Your Honor" and The Backstreet Boys, "Never Gone." Other popular releases that include MediaMax are Anthony Hamilton's Platinum CD, "Comin' From Where I'm From," J-Kwon's Gold "Hood Hop," and Velvet Revolver's "Contraband," which reached the #1 spot on Billboard's Top 200 Album Chart and achieved Double-Platinum status by selling more than 2 million units. Additionally, SunnComm's MediaMax technology has appeared on many other best-selling albums, totaling over 100 commercially released CD titles across more than 30 record labels. MediaMax Technology Corp. and SunnComm earn royalties for every disc manufactured that includes its proprietary copy management and enhancement software.

MediaMax is mastered directly on the audio CD and is accessible using a personal computer. SunnComm was the first company to commercially release a content-protected audio CD in the United States and co-developed and implemented an early version of the Microsoft Windows Media Data Session Toolkit (www.microsoft.com/presspass/press/2003/jan03/01-20SessionToolkitPR.asp). Bonus features include on-board press kits, artist-related promotions, videos, song lyrics, artist bio page, photo gallery, web links and tune-sharing capability through SunnComm's MusicMail™ functionality. For more detailed information about the company, its vision or philosophy, personnel, partners, and customers, please visit the company's Web site at (www.sunncomm.com), or call the Company directly at (602) 267-7500. For additional information or investor relations please contact:

Company contact:                   Investor contact:
Peter H. Jacobs                    Investor Relations
602-267-7500                       602-231-0681
peter@sunncomm.com                 press@sunncomm.com
ABOUT MEDIAMAX TECHNOLOGY

MediaMax Technology Corporation (OTC BB: MMXT), formerly QuietTiger, Inc. (OTC BB: QTIG), with its international reach, implements the delivery of digital content security products for the music and entertainment industry. With established long-term industry contacts throughout the world, the company understands the challenges surrounding digital content management and protection. The MediaMax Technology team of professionals has spent more than 50 years in the music and movie industry. MediaMax Technology (www.mediamaxtechnology.com) is the exclusive sales and marketing arm for SunnComm's MediaMax suite of products.

For additional information about the company, its vision, philosophy, partners, and customers, please visit the Company's Web site at www.mediamaxtechnology.com or contact:

Company Contact:                   Investor contact:
Scott Stoegbauer                   Investor Relations
602-267-3800                       602-231-0681
scotts@mediamaxtechnology.com      press@mediamaxtechnology.com

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

This news release contains predictions, projections and other statements about the future that are intended to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of l995 (collectively, "forward-looking statements"). Forward-looking statements relate to various aspects of the Company's operations and strategies, including but not limited to the effects of having experienced significant losses in the past and the risk that the Company may incur losses in the future; the Company's limited liquidity and significant indebtedness; its sales forecasts for future periods not being attained and the risk that the Company will not conclude additional revenue-generating license agreements covering its content protection and enhancement technologies; the Company's marketing, product development, acquisition investments, licensing and other strategies not being successful; possible future issuances of debt or equity securities; the possible incurrence of significant patent litigation expenses or adverse legal determinations that find our patents not to be valid; new business development and industry trends; the possible need to raise additional capital in order to meet the Company's obligations and most other statements that are not historical in nature. Important factors that could cause actual results to differ materially from those described in the forward-looking statements are described in cautionary statements included in this news release. In assessing forward-looking statements, readers are urged to consider carefully these cautionary statements. Forward-looking statements speak only as of the date of this news release, and the Company disclaims any obligations to update such statements.

Contact Information

  • SunnComm International Inc.
    Company contact:
    Peter H. Jacobs
    602-267-7500
    Email Contact

    Investor contact:
    Investor Relations
    602-231-0681
    Email Contact

    MediaMax Technology Corporation
    Company Contact:
    Scott Stoegbauer
    602-267-3800
    Email Contact

    Investor contact:
    Investor Relations
    602-231-0681
    Email Contact