New Visual Secures Worldwide Licensing Rights to Adaptive Networks' PowerStream Technology and Formalizes Collaborative Alliance

Business Wire, April 22, 2002

Business Editors/High Tech Writers

SAN DIEGO--(BUSINESS WIRE)--April 22, 2002

Deal Wins New Visual Corporation Major New Shareholders:

Zaiq Technologies, Inc. and TLSI, Inc.

New Visual Corporation (OTCBB:NVEI), a company developing proprietary broadband transmission technology to utilize existing copper telecommunications infrastructure to deliver video, voice and data at unprecedented speeds and distances, today announced that it has entered into a Development and License Agreement and formalized a long-term collaborative alliance with Adaptive Networks, Inc. of Newton, Massachusetts. The Agreement grants New Visual a worldwide, perpetual and exclusive license to Adaptive's PowerStream(TM) technology, intellectual property, and patent portfolio for use in products relating to all applications in the field of the copper telephone wire telecommunications network. The Agreement also formalizes Adaptive's engagement for development work to build the carrier-trial prototype of New Visual's high-speed communications technology, slated for completion late this summer.

Since September 2001, Dr. Michael Propp, founder and President of Adaptive Networks, has been working with Dr. David Greaves of Cambridge University and other members of New Visual's development team to integrate PowerStream's optimization approach into New Visual's high-speed, long-range solution. The PowerStream approach specifically optimizes for signal-degrading `noise' that occurs dynamically and randomly on copper telephone wire and has served to be a primary hurdle in transmitting voice, video and data over copper wire at true broadband-enabling speeds and distances. The resulting semiconductor technology will be offered to the industry for integration with platforms that are used by carriers to deliver services.

Commenting on the transaction, Ray Willenberg, Chairman and CEO of New Visual, offered, "These agreements represent a critical development milestone for us. We are very pleased that, with the exception of previous licenses granted by Adaptive to two unassociated parties, Adaptive has entrusted us with the exclusive rights to its PowerStream technology for the copper telephone wire telecommunications network. Adaptive has been granted 20 patents to date for various elements of PowerStream, including five in the United States, and has others pending both in the U.S. and abroad. This extensive patent portfolio should permit us to aggressively pursue and defend key markets for our solution."

In consideration of being granted worldwide licensing rights to Adaptive's technology, New Visual agreed to assume certain debt obligations of Adaptive to Zaiq Technologies, Inc., a Boston-based ASIC design firm, and TLSI, Inc., a New York-based fabless semiconductor firm. After negotiations and due diligence with New Visual, Zaiq and TLSI elected to accept, in aggregate, $3.95 million of New Visual's preferred and common stock. The shares are subject to defined redemption features, registration rights and transfer restrictions. In addition, Zaiq was paid $100,000 in cash and will receive an additional cash payment of $150,000 in May. Willenberg added, "We are very pleased to welcome both Zaiq and TLSI as new shareholders of our Company, and view their newly acquired equity interest in New Visual as a demonstration of their confidence in our team, technology, and plans for success."

In consideration of its development work for New Visual, Adaptive will receive cash and a royalty based on the Company's product sales and licensing revenues. In addition to the technology licensing agreement, New Visual also secured a comprehensive agreement with Adaptive regarding future joint activities between the firms, including provisions for additional technology, organizational, financial and management collaborations.

Dr. Propp stated, "We have concluded that the adaptive equalization technology embodied in PowerStream, which has proven successful for our customers over powerlines, is also well suited for New Visual's target applications over standard telephone wire. Since we first began working with New Visual, it was apparent that a long-term strategic partnership between our companies was in the making. New Visual has demonstrated an extraordinary ability to attract accomplished people across a variety of business and scientific disciplines. We are delighted to align our technology with a group we believe can make the most of it in this exciting field."

About Adaptive Networks, Inc.

Based in Boston, Massachusetts, Adaptive Networks is a leading developer of enabling high-speed powerline networking technology. Using patented technological advances, the technology offers such features as multi-megabit speed, integral support for QoS, multiple-node home-wide connectivity, and low cost. With these features, the diverse requirements of applications such as multimedia (streaming audio & video including broadcast and multicast), telephony, high-speed Internet access sharing, and PC networking can all be satisfied. Adaptive's lower-speed commercial/industrial powerline communications technology, on which the high-speed version is based, was selected by the International Standards Organization as the standard for powerline communications aboard refrigerated container ships for the monitoring of perishable cargo. It has also been selected by the IEC for its standards for automated meter reading. Adaptive's technology is recognized for meeting the strict criteria for reliability and speed of response required by such applications as factory automation and credit card transactions. For more information on the Company, please visit its web site at www.adaptivenetworks.com.