Digital Broadcast Corporation and Edgenics Sign Agreement to Provide Broadband Wireless Based Education Services

Business Wire, Oct 8, 2004

ROANOKE, Va. -- Digital Broadcast Corporation and Edgenics Partner to Provide Global Education Services Using Innovative Broadband Wireless Video and Internet Access

Digital Broadcast Corporation (DBC) and Edgenics Inc. today announced a strategic agreement under which the companies will leverage their respective strengths to provide innovative broadband wireless based services. DBC, its operating unit AirCable America, and affiliates focus on providing innovative "Wireless Cable" Services that include a bundle of cable channels, high-speed internet access and Voice-Over-Internet-Protocol (VOIP) services. Edgenics focuses on providing innovative e-learning services that utilize wireless broadband infrastructure for local deliver of its rich media course content, including interactive and digital video. Under the exclusive agreement, DBC and Edgenics will cooperate on strategic initiatives that facilitate the deployment and operation of broadband wireless services in the United States and International Markets. These innovative services are made possible by the recently issued FCC Report and Order in the "Broadband Wireless Services Docket". Under authority granted by this FCC Report and Order, DBC has obtained EBS (formerly known as ITFS) Licenses to provide broadband wireless services in more than one-hundred (100) U.S. markets. DBC will continue to obtain EBS licenses as it deploys its Broadband Wireless Stations for local distribution of cable and TV programming as well as high-speed internet access (1.4 Mbps per end-user) and VOIP services. Edgenics and its University Partners will utilize DBC Broadband Wireless Services to provide education courses and degree programs. DBC will provide three (3) cable channels and three (3) pay per view channels for use by Edgenics to deliver high quality digital video educational programming. Edgenics will provide a core-backbone network to link all the DBC Broadband Wireless Stations and facilitate on-demand, HD quality, digital video programming delivery. According to the agreement, DBC and Edgenics will collaborate on network system design and deployment, joint sales and marketing, joint development of new intellectual property and other business initiatives.

DBC will provide value to its customers by delivering wireless cable TV (with standard cable programming such as ESPN, etc.) as well as high speed internet access and VOIP services in either fixed price, unlimited usage packages or in al la carte offerings. DBC is able to accomplish this by utilizing compression technology that revolutionizes broadcasting in the FCC licensed 2.1 - 2.7 Ghz spectrum. Edgenics next-generation education services are created by utilizing DBC infrastructure to create a "near face-to-face" learning environment incorporating the use of HD quality digital video, high speed internet access and interactive collaboration tools. The initial phase of deployment of Edgenics Services is funded in part by an $11 million Loan and Grant from the U.S. Department of Agriculture (USDA) to extend continuing education to the Mid South Delta areas of Arkansas, Louisiana and Mississippi. Society benefits by our enabling teachers, students, and others to pursue their educational goals through media-rich distance learning. Edgenics educational services will include a wide cross-section of courses offered in partnership with selected Universities and content providers.

"The strategic alliance between DBC and Edgenics is a perfect match" said Gary Nerlinger, chief executive officer of DBC. "The distance education (e-Learning) services provided by Edgenics complement the DBC commercial offerings authorized by FCC for EBS spectrum licensees and will significantly benefit the schools, universities and PBS stations that are part of the DBC coalition".

DBC and Edgenics will implement their respective services in cooperation with key technology partners that are providing unique solutions for digital video compression, media asset management and collaboration software, network management and other technology components. The DBC - Edgenics technology and network infrastructure will be a unique platform for providing interactive video programming and other media services.

"The strategic agreement between DBC and Edgenics will allow us to capitalize on the opportunities afforded by the recent FCC Broadband Services decision" said Robert Dansby, CEO, Edgenics Inc. "For the first time we will be able to provide integrated broadband wireless based educational services that substantially benefit the education, business and government communities".

About Edgenics, Inc.

Edgenics is an e-learning services company that utilizes advanced communications, digital video and internet technologies to provide innovative educational courses and services. Edgenics implements its solutions by working with leading technology partners. Edgenics has implemented a unique business strategy in the e-learning space to provide educational services to customers in the government, corporate and higher education sectors. For more information, visit www.edgenics.org.