NS8 Corporation
OTC Bulletin Board : NSEO

NS8 Corporation

May 07, 2007 08:30 ET

NS8 Corporation Completes Financing & Change of Corporate Structure

LOS ANGELES, CALIFORNIA--(CCNMatthews - May 7, 2007) - NS8 Corporation ("NS8") (OTCBB:NSEO) has completed additional working capital financing of $3.3 million dollars from Cornell Capital Partners, LLP. The use of proceeds will be for the retirement of a recent $500k promissory note as filed and for its 2007 working capital requirements enabling the Company to successfully complete its current commercialization efforts in Asia Pacific. In addition, the Board of Directors of NS8 has implemented a series of Board and management changes as part of a corporate reorganization to enable the Company to reach its breakeven milestones before the end of the year. As part of those changes, certain members of its Board of Directors have voluntarily resigned in order to pave way for new directors who will contribute to achieving the next level of corporate growth that the Company has planned for the next two years. The Company is active in qualifying new director candidates that will compliment its business strategies and expects to announce the appointment of new directors before the end of second quarter 2007.

The Company welcomes Mr. George O'Leary to its Board of Directors and Mr. O'Leary will take an active role as the Company's interim Chief Financial Officer for the purposes of managing the Company's financial reporting and audit committee responsibilities as well as its strategic financial planning. Mr. O'Leary comments, "This Company has very exciting growth potential. Clearly it has developed very compelling technology and business applications that have strong market opportunities in today's rapidly emerging Internet entertainment market. The next steps to this Company's success are to focus on its sales goals and capture its target markets. I am looking forward to working with the Company on the achievement of these objectives." Mr. O'Leary will assume this role from Mr. Ricardo Rosado who has acted as the Company's interim CFO since 2004. Mr. Rosado will continue to focus his expertise in the product management of the Company.

In addition, the Board has implemented a search for executive candidates for the purpose of hiring a chief executive officer and president for the Company within a 90 day period. Mr. Anthony Alda and Mr. O'Leary will lead this executive qualification process with other Board members. Mr. Alda will remain as Chairman of the Board and Company spokesperson and, in addition, he will continue to assist the Company in its sales, product research and architecture. The move to identify and recruit a chief executive officer and president is part of the shift to narrow the Company's focus toward sales and marketing of its iWave Interactive product line to commercial customers in Asia, Europe and United States. Mr. Alda comments, "This Company is in a new stage of growth. Mr. O'Leary is a proven executive within this arena and we're pleased to welcome him to the NS8 team. Our plan is to enhance our Board with professionals that will compliment our vision and commercial strategies. We plan on being aggressive with regard to the assembly of our executive execution team this year. In turn, we plan on being as equally aggressive with respect to our commercial performance."

The Company has begun taking a series of steps aimed at creating cost reductions in the areas of personnel and non-performing assets in order to streamline the Company's core product and development. The Company expects to reduce its operating and development expenses by approximately 34% over the next quarter primarily due to the overall completion of its iWave Interactive product. The activities of our personnel will primarily be devoted to software requirements, product deployment and ongoing upgrade maintenance for iWave. New development and sales personnel are anticipated to be added throughout the year as sales objectives are achieved.

ABOUT NS8 CORPORATION

NS8 Corporation (www.ns8corp.net) is a Digital Interactive Media Distribution Company that specializes in the development of server-based technologies in the areas of content licensing, digital media publishing and royalty distribution management, including interactive consumer viewing systems for Internet on-demand applications for PC, IPTV and other portable media devices. iWave Interactive Systems is a division of NS8 Corporation that specializes in providing turn-key Broadcast Management Services of digital content over Internet enabled networks. iWave combines NS8's proprietary server based technologies for use by content owners, media distributors, and telecommunication companies to provide a powerful solution for processing, publishing, reporting and distributing content to consumers over PC, IPTV, mobile device or portable wireless environment.

SAFE HARBOR STATEMENT

Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company's beliefs and the assumptions it made using information currently available to it. Because these statements reflect the Company's current views concerning future events, these statements involve risks, uncertainties and assumptions. The actual results could differ materially from the results discussed in the forward-looking statements. In any event, undue reliance should not be placed on any forward-looking statements, which apply only as of the date of this press release.

TRADEMARKS

Consumer Program and Shopping Guide, CPG, Library Distribution Management System, LDMS, NS8, Secure Digital Content Distribution, Security Protocol Integration, SPI, and iWave Interactive Systems, iWaveMedia, AdWave are either registered trademarks or trademarks of NS8 Corporation or its subsidiaries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Contact Information

  • Rubenstein Investor Relations, Inc.
    Tim Clemensen, Senior Vice President
    NS8 Corporation Investor & Public Relations
    (212) 843-9337
    Email: tclemensen@rubensteinir.com