NS8Corp Announces Seamless Integration of Smart Encryption into Microsoft Windows Media 9, WINAMP and Apple Quicktime Enabling True On-Demand IP-Based Streaming of Rich Media

Business Wire, July 21, 2004

SEATTLE -- NS8 Corporation (OTCBB:NSEO) is pleased to announce that it has successfully completed testing of its proprietary smart encryption system, NS8 Security Protocol Integration(TM) (NS8 SPI(TM)). NS8 SPI is an encryption solution for all forms of digital files, especially rich media, that is lightweight, readily scalable, and easily integrated with legacy systems, enabling universal secure content distribution and management over IP-based broadband networks and multi-cast satellite systems.

The tests succeeded in demonstrating seamless installation into common media players such as Microsoft (NASD: MSFT) Windows Media 9 Player, WINAMP and Apple (NASD: AAPL) QuickTime in order for users to play their desired content securely. This transparent security capability enables recipients to access content without the use of key exchanges which are common in many of today's encryption methodologies.

Using NS8 SPI, a 4 gigabyte MPEG2, MPEG4, H263, and H264 encoded movie can be protected where the added weight from its security would be no more than 50 to 75Kbytes, or a 1.25% to 1.875% increase in file size. Using consumer grade HP Pentium 4 and HP Pentium 3 PC's, Apple Macintosh G4 computers, Dell Pentium 4 desktop PC's, and Compaq Pentium 4 multi-media laptop PC's in selected cities throughout North America, connected by shared T1, DSL, ADSL and cable modem, testers experienced near DVD quality and instant, seamless, uninterrupted movie or audio experience.

Thomas J. Routt, PhD, President of NS8 Corporation stated, "Having led teams responsible for the architecture, design, rollout, and management of secure enterprise and carrier network application environments, I have not previously witnessed a more robust and lightweight solution equally applicable to enterprises and consumers alike. NS8 SPI uniquely integrates standards-based and proprietary security both around and within digital content (video, music, software, text, graphics, multimedia), incorporating n-generational business rules on an end-to-end basis, both within and outside of any network environment, establishing the foundation for secure digital content distribution and piracy prevention and system-wide auditability."

Using NS8 SPI as a backbone for secured end-to-end distribution of rich media, NS8Corp is now completing a server and client-side solution with its NS8 Digital Distribution Network (NS8-DDN) product line that will enable content owners to securely distribute to multiple content aggregators and distributors over conventional broadband or multi-cast satellite networks.

"We designed our on-demand portals to be completely scalable and immediately deployable," said Marc Strauch, Chief Marketing Officer of NS8 Corporation. "Using our proprietary technologies combined with Macromedia Flash we are able to design, integrate, and deploy custom platforms for customers with rich media content and fully adaptable backend architectures that integrate directly with the existing infrastructures of cable, telco and direct broadcast satellite providers. Since the NS8 user interface requires no installation at the client level, we are able to reach multiple audiences immediately without hardware or significant product limitations."

Using the NS8-DDN, content owners can now implement revenue and territorial-domain distribution rules including a series of licensing policies that can be interwoven with the content as part of its security. Licensing policies such as limitations of distribution by number of plays, trials, territorial domains, revenue splits, expiration of distributable content through terms of licensing, and many other content-owner defined policies and business rules can be applied automatically to raw digital content as NS8 SPI processes the content for distribution.

About NS8 Corporation

NS8 Corporation (NS8Corp) (http://www.ns8corp.net) is a Delaware corporation specializing in the development of leading edge digital media security architecture, smart-encryption and non-resident (server-based) software technologies. Headquartered in Seattle, Washington, NS8Corp has offices in Seattle and Minnesota with primary research and development in British Columbia, Canada.

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

Non-Resident Software, NS8, Security Protocol Integration, SPI, and Secure Digital Content Distribution are either registered trademarks or trademarks of NS8 Corporation. Other company and product names may be trademarks of their respective owners.