FOR IMMEDIATE RELEASE

Contact: Eleanor Latimer - (214) 740-9276

 
The Digital Network and VeriTouch Announce Wireless Entertainment Network

Revolutionary System to Provide Encrypted Movies to Wireless Video Player Device

DALLAS/NEW YORK -- October 1, 2004 The Digital Network (TDN) and VeriTouch Ltd. today signed a Teaming Agreement to jointly develop a nation-wide wireless entertainment network for downloading movies, music and video games to VeriTouch's iVue® Personal Media Player, the first consumer mobile wireless player device incorporating biometric security.  TDN has developed technology to securely distribute large digital files using opportunistically available bandwidth of high definition television broadcasts to targeted receivers.  VeriTouch's unique iVue wireless handheld player is capable of biometrically encrypting and decrypting digital media, including full-length movies in MPEG-4 format. 

Utilizing the advanced TDN Digital Media Network and wireless content servers developed with VeriTouch, consumers visiting their local café, bookstore or retail merchandiser will be able to scan available music, video games, full-length movies, electronic books and other digital entertainment for sale and to download selections to their iVue Personal Media Player.  For the first time, consumers will have complete freedom in downloading premiere content to their hand-held player devices while on the move.  They can then play the content on their iVue or download it to their home or auto playback systems.

TDN is building a national data network, opportunistically utilizing HDTV bandwidth for distributing large electronic files.  Its data management system secures the content, encrypts and inserts it into the HDTV broadcast spectrum, where it is broadcast to special receivers that capture and securely store the specified content.  These special receivers then act as servers, distributing the content upon request by verified customers either wirelessly or over local area networks.   TDN's digital rights management system protects the content on the WaveRyder entertainment server from unwarranted access.  TDN will datacast movies, electronic books, music, electronic games, and other large entertainment files to specific retailers participating in the VeriTouch-TDN Wireless Entertainment Network.   Each retailer can have its own unique catalog of digital content.  TDN has the ability to refresh the catalog at any time, thereby ensuring that it is always current.   

Upon entering the retailer's premises, the consumer's iVue device will wirelessly connect automatically to the local TDN WaveRyder entertainment server illustrating all of the available movies, music, electronic games and other content that can be purchased for download.  By tapping the touch screen of their iVue, the consumer will be able to choose and retrieve selected content while accomplishing other activities in the store.  Complete downloads will take only a few minutes.   Thus, consumers can quickly add to their entertainment library while carrying out other activities and retailers can enhance the services they offer their customers.

VeriTouch's iVue Personal Media Player is a unique, wireless handheld entertainment system with 4 inch color TFT high-resolution touch screen and fingerprint biometric encryption, securing all files downloaded and stored on the device. With a 120 gigabyte hard disk, it has plenty of capacity to hold full length feature videos. Downloaded content may be wirelessly broadcast to the consumer's home and auto stereo and video playback systems through a high-frequency radio link.  The iVue is built on the Linux Operating System and is the first hardware device to incorporate anti-piracy technology.

                                                                                               VeriTouch iVue Personal Media Player
 

Gary E. Brant, CEO of VeriTouch, commented, "We are delighted to have the generous support of a world-class innovator like TDN in the wireless delivery of content to our new iVue Personal Media Player. This venture will surely have a big impact on the way that consumers gain access to first-run videos, music and electronic gaming content in a very positive way.  It will also give our retail partners a unique opportunity to become entertainment distribution companies, enhancing the in-store experience of their customers."

Not only will retailers and consumers find this an innovative mobile solution compatible with today's on-the-go lifestyle, but retail financial organizations will also appreciate the security features of the iVue biometric technology.   Using simple to implement, yet highly sophisticated biometric encryption technology, financial institutions can now be sure that a consumer's transaction is legal and authorized.   Consumers can likewise feel secure completing a financial transaction using biometric authentication with wireless technology.  

"This teaming of innovative distributive and biometric technologies will create a secure system of distribution for consumers, retailers, and financial organizations, thus changing the paradigm for the purchase of first-run video and other digital media.  While iVue may be as revolutionary to video distribution as the iPod was to music; at the same time, it dramatically enhances retailers' abilities to participate in rapidly changing consumer lifestyles, creating a whole new in-store service offering.  We are excited to partner with VeriTouch and we look forward to launching the next step in digital media retailing," said Bo Bernard, CEO of TDN.



For Further Information, kindly contact:

Bo Bernard, CEO
The Digital Network, Inc.
Direct Line: (214) 740-7473
Email: bbernard@thedigitalnetwork.com

Gary E. Brant, CEO
VeriTouch Ltd.
Mobile: (917) 378-2525
Email: gb@veritouch.com