New Licensing Agreement Puts NCTI ClearSpeech At Center of Rapidly-expanding Cellular and Wired Telephone Network Infrastructure

Business Wire, July 11, 2000

Business/Technology Editors

WESTPORT, Conn.--(BUSINESS WIRE)--July 11, 2000

Noise Cancellation for Dramatically Improved Voice Quality

NCT Group, Inc. (OTCBB: NCTI) announced a new licensing arrangement in which the Company's ClearSpeech(R) noise cancellation algorithm is utilized as a key component of voice quality enhancement products. This company's products are being marketed to wired and wireless telephone network providers worldwide. NCTI will receive per channel royalties in this licensing agreement. It is expected that two to four million channels of voice quality enhancement connectivity will be shipped annually.

"For years we have been working to be at the heart of the rapidly expanding telephony communications network infrastructure," said Michael J. Parrella, Chairman and CEO, NCTI. "We are very pleased that ClearSpeech is truly becoming the standard for clear communications and is being used for a wide variety of applications including hands-free cellular and voice-controlled automotive systems."

The ClearSpeech noise reduction algorithm is designed to remove noise from an input speech signal to improve voice quality. The algorithm is adaptive--as network noise changes in either frequency or amplitude, ClearSpeech continues to cancel the noise for consistent performance.

About NCT Group, Inc.

NCT Group, Inc. is a publicly-traded, high-tech company. Having historically specialized in the utilization of sound and signal waves to electronically reduce noise, improve signal-to-noise ratio and enhance sound quality, the Company of today is applying its technological innovations to the areas of media, through its DistributedMedia.com, Inc. subsidiary, and communications, with a specific concentration on IP telephony applications. The Company's emerging technology incubation strategy nurtures development of NCT technologies and complimentary technologies from outside developers. Current offerings include the proprietary Sight & Sound(TM) system, a place-based advertising medium installed in retail and commercial locations; ClearSpeech(R), a suite of software algorithms for integrated Internet telephony and enhanced speech-driven applications; silicon micromachined microphone chips for use in communications products; and Java(TM) chip technology targeted to developers of smartcards, appliances and communications applications. The Company's award-winning brands include Gekko(TM) flat audio speakers and NoiseBuster(R) and ProActive(R) active noise reduction headsets. For more information, refer to www.nct-active.com

Cautionary Statement Regarding Forward-Looking Statements

Certain information contained in this press release are forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 (the "Act"), which became law in December 1995. In order to obtain the benefits of the "safe harbor" provisions of the Act for any such forward-looking statements, the Company wishes to caution investors and prospective investors about significant factors, which among others, have in some cases affected the Company's actual results and are in the future likely to affect the Company's actual results and cause them to differ materially from those expressed in any such forward-looking statements. Investors and prospective investors should read this press release in conjunction with the Company's most recent Form 10-K and Forms 10-Q.