Watermarking Content Protection in Hollywood, USA Video Interactive Corporation (OTCBB: USVO) MediaEscort Deployed by Twentieth Century Fox Home Entertainment; Cinea, Inc.'s Running Marks Allows On-Demand Content Security

Market Wire, April, 2008

www.DigitalMediaStocks.com , an investor and industry portal for the digital media sector within Investorideas.com, reports on new developments in Watermarking content protection technology in Hollywood and in the sector.

USA Video Interactive Corporation (OTCBB: USVO) (CDNX: US.V) (BERLIN: USF.BE) (FRANKFURT: USF.F) just announced that Twentieth Century Fox Home Entertainment, a subsidiary of Twentieth Century Fox Film Corporation, a News Corp company, has gone live with USVO's new copy protection software, MediaEscort™, to protect the Studio's filmed entertainment content that is streamed via the Internet to its various trade business partners in advance of DVD availability.

MediaEscort is a software application that resides on customers' video server and automatically and seamlessly embeds SmartMarks (invisible forensic information in every frame of video content) during Internet delivery.

According to the Company, "TCFHE selected MediaEscort for online delivery of streaming media content for review by retail buyers, distributors and others that sell DVDs to the general public. The move provides the Studio's trade partners with the convenience of being able to view its product simply on their office computer."

MultiMedia Intelligence reported in January, "Applications leveraging content identification technologies, such as digital watermarking and fingerprinting, are growing rapidly and could surpass US$500 million worldwide by 2012. Key applications include Internet and broadcast content monitoring, metadata association, copyright control, content protection and forensics, and interactive advertising."

"Non-linear media distribution requires new enabling technologies, beyond traditional encryption-based Digital Rights Management," according to Mark Kirstein, president of MultiMedia Intelligence. "The growth of peer-to-peer distribution, social networks, and content piracy is accelerating the need for watermarking and fingerprinting."

The report goes on to say, "Digital watermarking will also complement Digital Rights Management (DRM) and Conditional Access technologies. Companies, such as Cinea, Philips and Verimatrix, are positioning transactional digital watermarking for integration in set-top boxes to increase content traceability and security. This goal is to convince content owners to support earlier release of High Definition video assets for video-on-demand and enable incremental revenue for pay TV operators. Fox has already communicated that they will mandate watermarking for early-release HD content."

Cinea, Inc., a subsidiary of Dolby Laboratories, Inc., recently announced that its Running Marks™ technology now enables traceable, stream-specific forensic watermarking of encrypted content.

The Company recently stated, "Our customers have inquired about watermark deployment within an encrypted environment, since many motion picture studios and other high-value content providers mandate encryption as a part of their overall content protection requirements," said Rob Schumann, General Manager of Cinea, Inc. "Running Marks allows system operators to meet content providers' stringent security requirements in an efficient and secure manner."

Other news in the sector: Digimarc's ID Systems was acquired by L-1 Identity Solutions, allowing Digimarc to focus on the growing demand for Digital Watermarking solutions.

From the Company's release, "This relationship comes at a particularly opportune time for Digimarc, as we are experiencing an inflection point in adoption and revenue growth for digital watermarking," said Davis. "Our technology is beginning to permeate the full range of media content, from banknotes and secure credentials to television, movies, music, video games, digital images, advertisements, packaging, and industrial goods."

Digital Media Showcase Company:

USA Video Interactive Corp. ("USVO") designs and markets technology for delivery of digital media. USVO developed its MediaEscort™, MediaSentinel™ and SmartMark™ digital watermarking products and technology to provide a robust means for producers and distributors to invisibly protect their content. USA Video Technology Corp., a wholly owned subsidiary of USVO, holds the pioneering patent for store-and-forward video, filed in 1990 and issued by the United States Patent and Trademark Office on July 14, 1992; it has been cited by at least 165 other patents. USVO holds similar patents in Germany, Canada, England, France, Spain, Italy, and Japan. Visit www.usvo.com or the company showcase on Investoideas.com at: http://www.investorideas.com/CO/USVO/Default.asp

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