SOURCE: NuTech Digital, Inc

August 22, 2007 09:30 ET

NuTech Digital Closes Agreement to Purchase Assets of Jump Communications

LOS ANGELES, CA--(Marketwire - August 22, 2007) - NuTech Digital (OTCBB: NTDL), announced today the closing of its Agreement with Jump Communications acquiring telco switches and related licenses, intellectual property, and a call management system valued at approximately $3.7 million from Jump Communications. The Agreement also provides for NuTech's exclusive right to market and exploit Jump's unequalled digital video compression technology and to manufacture set top units for the economic delivery of a number of highly sought after and desirable video and data services.

Jump Communications will provide management and a majority of Directors as part of the transaction. For further details, please see Form 8-K filed by NuTech on August 14, 2007.

"This transaction creates new markets and opportunities for NuTech and its shareholders," said Lee Kasper, President and Chief Executive Officer of NuTech. "We believe with the Assets and Licenses acquired from Jump will enable NuTech to compete in the enormous telecommunications market and to deliver new video and data services to the market."

The collection of assets acquired by NuTech from Jump are expected to generate increased cash flow to NuTech and its subsidiaries by operating a broadband telephone network capable of delivering a variety of services including broadcast quality two-way videophone, an unlimited number of entertainment and television channels, voice over IP (VoIP) service and access to the public Internet. A. Frederick Greenberg, the President of Jump Communications, Inc., has called this combination of services "The Grand Slam" of convergence and sees this as the model for the future of telecommunications.

The new corporate structures will exploit and market NuTech's existing businesses as well as new markets by means of NuTech's acquired technology that enables a high-speed "switched" telephone network using conventional broadband services such as DSL, wireless, or the Internet for two-way video, audio, and data exchange. "The critical difference in our technology is point to point communications occur in real-time through our superior digital compression technology allowing video, audio, and data to flow bi-directionally without the constraints typical of conventional telephone company networking."

"With our newly acquired technology it's NuTech's objective to change how we communicate. Building upon the successful history of Jump Communications with governmental agencies, distance learning, and the U.S. Military, among others, our initial focus will be to develop vertical markets and management team's expert in each market. We have already identified teams for security and surveillance, medical services, and multiple dwelling unit markets while we continue to identify new markets," said Mr. Kasper.

About NuTech Digital

A telco and technology company based in Los Angeles, California, NuTech provides industry leading digital video compression technology delivering 2-way video with a true personal presence at distance, conducted over its private telephone company network delivering the highest quality video communications. NuTech markets and sells its proprietary products and services to the medical services market, security and surveillance market, the multiple dwelling unit market and others.

Forward-Looking Statements

The statements in the press release that relate to the company's expectations with regard to the future impact the company's results from acquisitions or actions in development are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The management of the company takes full responsibility for the contents of this news release. The information contained herein should not be construed as a recommendation to purchase any securities. Statements in this news release concerning the company's business outlook or future economic performance, anticipated profitability, revenues, expenses, or their financial items and statements concerning assumptions made or expectations as to any future events, conditions, performance, or other matters, regarding "forward-looking statements" as that term is defined under the Federal Securities Laws. There is no guarantee past performance will be indicative of future results. The accuracy or completeness of the information in this news release is only as reliable as the sources they were obtained from investments in small cap companies are generally deemed to be highly speculative and to involve substantial risk, making it appropriate for readers to consult with professional investment advisors and to make independent investigations before acting on information as any investment in small cap companies could prove to be high risk investments with the result of loss of part, or the total principal investment.

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