Business Services Industry

SunnComm Forecasts That Its MediaMax CD Copy Management Technology Will Be Applied to More Than 145,000,000 Audio CDs This Year

Business Wire, Feb 1, 2005

PHOENIX -- The Company is Deriving These Minimum Projections from Currently Active Strategic Partners Only

SunnComm International, Inc. (OTC:SCMI), the developer of MediaMax(TM), the most widely used and commercially accepted audio CD copy management and enhancement technology in the United States, has released what it considers to be a conservative forecast for this year. The projections are based on feedback received from more than 25 record labels throughout North America that have already implemented SunnComm's MediaMax technology on hundreds of commercial, promotional and pre-released CD titles.

"While these numbers represent more than a ten-fold increase over our 2004 production quantities, they only embody projections associated with SunnComm's current active strategic partners," observes Scott Stoegbauer, VP of Sales & Marketing at SunnComm's exclusive marketing arm, QuietTiger (OTCBB:QTIG). "Incremental sales could add to these figures should several of the recently-signed, newer record company licensing agreements become actualized. Production associated with the newest agreements will probably start as promotions and pre-releases, just as with past agreements, but I have no doubt that SunnComm will be adding MediaMax to many commercial releases originating from our newest major record label customers well before the end of this year."

"When MediaMax is added to a new CD release," says Peter H. Jacobs, SunnComm's President, "rampant casual copying is significantly reduced and more CDs are sold. Because MediaMax costs major record labels less then $0.05 per manufactured CD, its application onto audio CDs not only pays for itself, but creates additional profit for the record label as well. Consumers love MediaMax because of the expanded bonus/entertainment features found on the CD when buyers put their MediaMax disc into a PC or Mac."

Adam Gervin, VP of Marketing for Macrovision, one of SunnComm's competitors employing content protection mostly in Europe and other overseas markets (Nasdaq:MVSN), was recently quoted in The Register as saying, "...I can tell you that 2005 will be the year when the entire music industry in the US moves to CD copy protection. It will be a watershed year because there is just too much pressure to protect content." (http://www.theregister.co.uk/2005/01/13/macrovision_drm/) Jacobs, agrees, "Our technological priorities this year are to ensure that we have the production capabilities, customer service, and infrastructure in place to accommodate the tremendous growth that I feel is ahead. Another major goal will be to achieve fully authorized compatibility between Apple's iPod and MediaMax, sooner as opposed to later this year." Jacobs continues, "Also, later this quarter, SunnComm plans to broaden its current MediaMax applications to DVD as well as downloaded audio and video content burned to a CD or DVD. New partnerships will be formed which we believe will accelerate the introduction of these new applications into the marketplace."

Last year, SunnComm's MediaMax technology was included on more than 10 million CDs comprising nearly 100% of all copy-managed CDs in the US. They have consistently been first to market with innovative security and enhancement solutions and have signed worldwide agreements with most of the major record labels. SunnComm earns royalties for every CD that contains its MediaMax technology.

ABOUT SUNNCOMM

In just five years, SunnComm International Inc. (OTC:SCMI) has become the leader in digital content enhancement and security technology for audio compact disc media. 2004 was a year of milestones for SunnComm including Anthony Hamilton's "MediaMax'd" CD "Comin' From Where I'm From" recently achieving platinum status. Earlier this year, Velvet Revolver's "Contraband" CD reached the #1 spot on Billboard's Top 200 Album Chart becoming the world's first number one CD to include content management. "Contraband" has achieved double-platinum status by selling more than 2 million units. Additionally, SunnComm's technology has appeared on many other best-selling albums in 2004, some of which have gone gold. Last year ended with MediaMax implemented on more than 75 commercially released CD titles across 25 record labels generating over 10 million CDs, making it the U.S. market leader in copy control and enhancement technology.

MediaMax is state-of-the-art technology which features SunnComm's proprietary On-the-Fly Technology(TM) - giving the consumer a legal method of making licensed duplicate copies of the CD music they purchase without the record label needing to include a 2nd set of songs on the CD in a protected format. MediaMax also includes SecureBurn(TM) - SunnComm's extraordinary new technology that inhibits copying a copy of a MediaMax CD.

MediaMax is mastered directly on the audio CD and is accessible using a personal computer. SunnComm was the first company to commercially release a content-protected audio CD utilizing an early version of the Microsoft Windows Media Data Session Toolkit, and was the first company in America to commercially release a copy-managed audio CD (www.microsoft.com/ presspass/press/2003/jan03/01-20SessionToolkitPR.asp). (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field.Remove the extra space if one exists.) Bonus features include on-board press kits, artist-related promotions, videos, song lyrics, artist bio page, photo gallery, web links and tune-sharing capability through SunnComm's MusicMail(TM) functionality. For more detailed information about the company, its vision or philosophy, personnel, partners, and customers, please visit the company's Web site at www.sunncomm.com, or call the Company directly at (602) 267-7500.

 

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