SOURCE: MediaMax Technology Corp.

May 03, 2006 08:00 ET

MediaMax Technology Completes '05 Year-End Audit

Company Files Form 10-K With SEC

PHOENIX, AZ -- (MARKET WIRE) -- May 3, 2006 -- MediaMax Technology Corp. (OTC BB: MMXT) announced today that an independent accounting firm has completed its 2005 year-end audit and the Company has filed SEC Form 10-K.

Company president and CEO, Kevin M. Clement, emphasized, "Filing all SEC documents on time is a priority for MediaMax. However, the temporary revenue loss created by the events of last November caused some concern about the valuation of the Company's Exclusive Marketing Agreement with SunnComm. This agreement represented the single largest asset on our balance sheet last year. During the required audit, management and the auditors became concerned about the agreement's valuation. Management along with the audit team believed that the agreement's value had been impaired. It is important to note the concerns about the value of the marketing agreement related to the specific products covered in the agreement. The marketing agreement, as written, may or may not cover the newest products currently in development and testing. At this particular point in time, the management of MediaMax can not determine when revenues will be generated from the existing products included in the marketing agreement, as written."

Kevin continued, "Given the recent uncertainty in the marketplace for copy protection technologies, management believed it appropriate to write-down the value of the current exclusive marketing agreement. Management does believe the products covered under the marketing agreement will generate revenues, but not until such time as the current legal situations are resolved and new standards are set. The Company also believes revenues will be generated from a new set of products currently under development, testing and review. While MediaMax and SunnComm (OTC: SCMI) continue to design and develop new applications, they are working diligently to ensure these new products are covered under a modified marketing agreement."

It is expected that wide use of copy protection will not take place in the U.S. until such time as standards are defined and the pending legal cases have been adequately resolved. Management believes the protection of intellectual property is critical to the success of content creators and content owners alike. Both MediaMax and SunnComm continue to work with their customers and consumer advocacy groups to resolve ongoing litigation and develop a set of standards and best practices for copy protection technologies moving forward. Many of the required guidelines have already been established as evidenced by SunnComm's public response on February 2, 2006 to an open letter from the Electronic Frontier Foundation (EFF) dated December 9, 2005. The EFF's open letter to the Company requested commitment to various best practices with respect to the development and use of copy protection technologies.

Once the decision was reached to fully impair the marketing agreement, the auditors needed to review the prepared 10-K and render an opinion that did not include the value of the agreement. This audit was completed and the opinion issued on April 30, 2006. Immediately upon receipt of the audit opinion and final review by MediaMax management, the 10-K was submitted for filing. The Form 10-K was sent on May 1 and accepted on May 2, 2006.


MediaMax Technology Corporation (OTC BB: MMXT), with its international reach, implements the delivery of digital content security products for the entertainment industry. With established long-term industry contacts throughout the world, the company understands the challenges surrounding digital content management and protection. MediaMax Technology is the exclusive sales and marketing arm for SunnComm's MediaMax suite of products. For additional information about the company, please visit the Company's Web site at ( or contact:

Company Contact:                    Investor contact:
Scott Stoegbauer                    Investor Relations
602-267-3800                        602-231-0681
The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risk, uncertainties as well as other uncontrollable or unknown factors could cause actual results to materially differ from the results, performance or expectations expressed or implied by such forward-looking statements.

Contact Information