NS8 Corporation
OTC Bulletin Board : NSEO

NS8 Corporation

June 06, 2005 09:20 ET

NS8 and Improv Systems Initiate Co-Development Project to Integrate Digital Media Distribution Platform

SEATTLE, WASHINGTON--(CCNMatthews - June 6, 2005) - NS8 Corporation (OTCBB:NSEO) and Improv Systems, Inc. announce that they have initiated a co-development project to integrate NS8 iWave™ content distribution management and security architecture into Improv Systems' Jazz DSP platforms.

NS8 Corporation and Improv Systems will create and co-market on-demand solutions with security features within the consumer electronics industry, focused on Home and Portable Media devices. The market and the co-development relationship are being driven by the need to conveniently download or stream entertainment content (video or audio) through the Internet to any PC-based media device. With PC based platforms becoming the future media center for home entertainment, consumers have more flexibility in the collection and storing of a myriad of content. As a result, portable media devices allow consumers to conveniently store and remotely utilize all their PC-based digital music, photos and video titles or any other content within a non-resident platform. Improv Systems Inc.'s Jazz-DSP media processor platform and architecture enables this capability at a device level where decoding major digital media formats and facilitating control of an embedded device is required.

Alpha implementation of the iWave™ architecture into the Jazz DSP platform is targeted to begin early Q3-05 with Beta testing and optimizations to be concluded by Q1-06, at which point commercial launch of the IP based technology will be formally launched. OEM's & ODM manufactures will be able to incorporate support for iWave content distribution management and security in digital media receivers, personal video recorders, portable audio players, set-top boxes, and video phones, with support for additional devices to follow.

The co-development relationship of NS8™ and Improv Systems will move forward in the market while driving their individual market strengths and maintaining leverage within their core market focuses. Revenue sharing, Co-Marketing campaigns and royalty distribution will be defined during beta launch phase. Within the relationship, Improv will drive market adoption with leading Semiconductor companies and advanced chip design companies, NS8 will drive Internet service providers, telco's ISPs and consumer electronics companies (OEM & ODM).

The key target for the co-development is focused on digital media devices that typically operate as external PC storage, offering 50 to 250 GB of storage capacity. The devices can load video files (MPEG-2, DiVX, MPEG-4, etc.), audio files (MP3, WMA, etc.) and image files (such as JPEG). Once media devices are loaded, they become portable entertainment players that can be used with televisions in the living room, in the car, or while traveling. Common interface outputs such as video (composite, S-video, component) and audio (stereo, SPDIF) enable easy connection to any television or display terminal. Users access content and control playback in a manner similar to a DVD player, using a convenient remote control that enables set-up, browsing, and playback control (play, pause, rewind, fast-forward, etc.).

"We see tremendous market opportunities co-developing with Improv Systems. The Jazz DSP platform is a highly flexible media processor platform that supports critical codec formats and feature optimizations that truly enable NS8 technology to deliver a "total home and portable entertainment solution", converging the television and PC into the home media center," said Bryan Greear, Senior Vice President of sales and marketing, NS8. "With the on-demand entertainment market growing at an incredible pace and endless choice of video, audio, photo, and other media becoming available for portable devices, the relationship with Improv will be critical to allow consumers to collect and store products though one virtual access port, with easy to use entertainment libraries that can store an unlimited amount of content within a virtual server environment."

"One of our primary goals at NS8™ is to drive the next generation on-demand technology and connectivity products for mobile consumers "on the go" with content access anywhere, anytime, as well as within the Digital Home environment," added Bryan Greear. "Towards fulfilling that goal, we have begun development and optimizations using media processors technology from Improv Systems, which offer us a high quality decoding solution with encryption, as well as a wide range of chip level design options."

"We are very excited to work with NS8™ on their on-demand delivery and security solution for media player products," said Cary Ussery, CEO of Improv Systems. "Our Jazz DSP architecture and media processor platform is a leading market solution for digital media adapter products as a result of our advanced codecs technologies, strong digital rights management (DRM) support, and flexible system features that will become critical for portable media devices in the immediate future."

Related Industry Information:

MPEG Video IC Market to Grow Every Year Through 2008 - The MPEG video IC market grew 48% in units and 36% in revenues in 2003, according to In-Stat/MDR (http://www.instat.com) a high-tech market research report. Increases in shipments of DVD players and set-top boxes were responsible for much of the unit growth. While DVD player shipments will level off, growth in other products consuming MPEG video ICs, like DVD recorders, digital television sets, and digital terrestrial set-top boxes, will keep the total market growing every year through 2008.

"MPEG-4 ICs, both ASP and H.264, will become a force in the market over the next several years as broadcasters use more efficient compression to deliver video to mobile devices and other receivers," says Michelle Abraham, a Senior Analyst with In-Stat/MDR. The mobile handset market will be one of the largest markets for MPEG-4 ICs - particularly those handsets with cameras able to capture video and those with digital TV tuners for mobile broadcast reception. DVD players are adding support for MPEG-4, as are set-top boxes connected to bandwidth-limited networks. MPEG-4 ICs are anticipated to grow at a triple digit rate reaching more than 100 million units in 2007. With the promise of greater bandwidth on 3G networks, rapid advances in compression technologies, and new multimedia handset capabilities, the stars are beginning to align for mobile video services in the US. High-tech market research firm, In-Stat/MDR (http://www.instat.com) reports that, with a number of limited deployments already underway in the US, market launches in this space will accelerate in late 2004 and throughout 2005. By 2009, mobile video services are expected to generate $5.4 billion in annual revenues.

About NS8 Corporation

NS8 Corporation (http://www.ns8corp.net) is a Software Development Company based in Seattle, Washington, USA with Research & Development facilities in Canada. NS8™ specializes in the development of server-based software technologies in the areas of smart encryption, content licensing and royalty distribution management, including interactive consumer experience viewing systems such as automated advertisement and catalogue merchandise management for Internet on-demand applications. NS8's products are built around a highly integrated and scalable IP technology platform to ensure end to end security distribution and revenue management of content from creation to consumer delivery using Personal Computers, IP Set-top boxes, PVR or any IP compatible portable media device.

iWave™ Interactive Systems is an NS8™ product line that combines its proprietary security, software architecture and server based technologies for use by content owners, media distributors, digital storage facilities, digital asset management firms and interactive service providers such as streaming or still image advertisers, food delivery services and catalogue merchant retailers. iWave™ provides these business sectors with a cost efficient automation solution for processing distribution licenses, territorial viewing policies, consumer recording and transfer rights, payment collection and media usage auditing, service or merchandise ordering, and royalty management. iWave also offers an interactive consumer menu system that can integrate with existing middleware systems for on-demand functionality and provides automated private-label and brand management capabilities that can be accessed by a consumer from any PC, MAC, WiFi or digital set-top box environment.

About Improv Systems, Inc.

Improv Systems, Inc. develops and licenses the Jazz PSA™ platforms featuring the Jazz DSP and application solution kits for Voice-over-IP, Networking and Emerging Media. Improv's Jazz DSP is a configurable DSP that allows designers to create optimized DSP cores targeted to consumer electronics and telecommunications markets. Through the company's Ensemble™ Partners program, formed to help accelerate the use and integration of designer-defined DSPs in System-on-Chip (SoC) solutions, Improv customers have access to complementary products and services from companies such as ARM (ARMHY), MIPS Technologies (MIPS, MIPSB), Synopsys (SNPS), Cadence Design Systems (CDN); and Wind River Systems (WIND), among others.

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, 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.

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