New Medium Enterprises, Inc. (OTCBB: NMEN)

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Symbol: OTCBB: NMEN

Address:
New Medium Enterprises, Inc.

Global Headquarters:
VMD House
195 The Vale
London W3 7QS
United Kingdom
Phone: + 44 208 749 9955

USA Office:
8721 Sunset Blvd, Suite P8
West Hollywood, CA 90069
Phone: +1 310 967 3084

www.nmeinc.com

Top Investment Highlights

The company has created a revolutionary new product known as HD VMD that, if successful, will serve as the natural successor to the existing DVD platform.
Its Multilayer product supports High Definition (HD) content and will be competitively priced for the discerning consumer electronics market. The company believes its product to be a viable third-generation challenger to HD-DVD and Blu-ray technologies.
The 2P process used to create the company's products allows for manufacturing commercially viable discs at a positive yield of over 90%.
The HD VMD Multilayer format utilizes today's red laser technology, which will maintain current DVD industrial infrastructures, and allows for increased capacity to support the future of red laser technology.
The company has formed commercial partnerships with a number of OEMs in the Far East — to ensure early and easy adoption of its HD VMD platform — and is preparing three routes to market: retail, content driven channels, and a variety of film initiatives.
New Medium Enterprises is backed by an experienced management team; combined, its principals have decades of experience in investment banking, business and technology consulting, the marketing of luxury and consumer goods, and optical storage research and consulting.

Corporate Overview

New Medium Enterprises, Inc. is a combined optical, media, and electronics company that has created the natural successor to the existing DVD platform. Its technology delivers High Definition (HD) quality while utilizing existing DVD production methodologies for both disc and player. Named for its ability to act as a Versatile Multilayer Disc (VMD), the company has branded its product the 'HD VMD'.

The Technology

We use optical media products every day. From compact discs, to DVDs, to CD-ROMS and rewritable discs, these storage devices provide us with entertainment, information, music, and storage. Since the inception of media storage technology, major manufacturers have been in perpetual pursuit of the next big thing; namely, how to offer a better product to more people. After 10 years of research, New Medium Enterprises is ready to launch a revolutionary product that, if successful, will serve as the natural successor to the existing DVD platform. Its HD VMD optical product is a multi-layer disc that has enough capacity to support HD content. Today's standard DVD has only one or two layers; New Medium's revolutionary product supports four layers and could potentially support up to eight. HD VMD also keeps with current infrastructure (this way, disc and OEM manufacturers alike don't have to make substantial new purchases in equipment). According to the company, the modified 2P technology used to create this product drastically diminishes the problems that prevented original DVDs from breaking through the duallayer barrier. Using separating layers to minimize cross talk, New Medium has created commercially viable four-layer VMD discs that yield 20GB of storage. Among its other advantages:

The HD VMD is showing a 90% positive yield (the amount of viable discs that are manufactured) and it will be competitively priced. Blu-ray discs have five times the capacity of standard DVDs and can support HD video, but are still too expensive for mainstream markets. Not only can New Medium's more affordable discs cater to the current red laser markets (expected to stay strong for the next 5-7 years), but they are designed to support increased capacity. That is, once red lasers become replaced by other lasers, the HD VMD technology will be able to be read by any type of laser in the future. This, along with its compatibility with current infrastructure, will only add to the longevity of this product.

Market Opportunity

Today's world is information driven and increasingly dependent upon digital technologies. The number of PC users worldwide is expected to reach the one billion mark by 2008, and the absolute majority of those consumers are utilizing red laser technology. In 2005 alone, over 7 billion DVDs were sold, and that number is expected to rise to 10 billion by 2009. In the rapidly expanding HD entertainment market, broadcast services and cinematic film have made great strides in fitting new TV screens with ‘HD ready' capabilities. However, an affordable, mainstream-friendly HD alternative to the DVD has not yet come to market. With its competitively priced solution, New Medium Enterprises is positioned to fill the gap and capture significant market share. With DVDs selling in the billions and China alone producing 420 million DVD players per year, the market potential is tremendous. The company has formed commercial partnerships with a number of OEMs in the Far East — to ensure early and easy adoption of its HD VMD platform — and is preparing three routes to market: retail, content driven channels, and a variety of film initiatives.

Planned Launches

The company anticipates that its HD VMD technology will replace the DVD as the standard for both consumers and manufacturers. It projects the following sales in regions with planned launches: 65% in North America, Japan and Europe; 15% in India; 10% in China and 10% in South America and Russia.

Consumers in these regions will benefit from mass production leading to an inexpensive price, as well as compatibility and the availability of a broad range of films and other content. The industry will benefit from the minimal retooling costs to manufacturers, increased profits in rapidly expanding consumer markets, and a true HD platform without unproven, expensive technology.

Recent Milestones

While viable products and groundbreaking technology are an important foundation for optical media companies, it is content that will bring success and visibility in the marketplace. New Medium Enterprises has a variety of media partnerships with which it can achieve global distribution - through these strategic relationships, many popular films will be offered in HD VMD.

Through their most recent content agreement with Scandinavian-based Scanbox Entertainment, consumers will be offered a wide range of Hollywood blockbusters, including Lord of War, Saw II, Lucky Number Slevin, and 16 Blocks. In France, film lovers can choose from the likes of Pulp Fiction, Scary Movie II, and Spy Kids thanks to New Medium's partnerships with UFG, BAC Films, Millimage, and Gedeon. Content deals with US-based Anthem Pictures and German-based VCL give consumers access to HD VMD versions of Hostage, Paparazzi, Blur, and Judges, among many others. Indian deals with Eagle Films, Ultra, and Eros brings even more big titles; consumers can choose from The Constant Gardner, Blade Trinity, Babel, Final Destination II and III, and Bend It Like Bekham. Most notably, New Medium is in the final stages of a content deal with one of the world's largest independent film distributors, which would expand the company's reach to the UK, Australia, and New Zealand.

In addition, the company recently announced a US-based distribution deal with PC Rush that will distribute and market the HD VMD Media Player Duo and HD VMD Media Player Quattro (priced at $199 and $249, respectively). These media players will be available from PC Rush in Q3 2007, and are expected to fill market needs by delivering HD discs and players at an affordable price for a broad consumer base.

Management

Mahesh Jayanarayan,
CEO

Alexander Bolker-Hagerty,
Executive Vice President

Dr. Eugene Levich,
CTO

This corporate profile is based upon information provided by management of New Medium Enterprises, Inc. The information is not intended to be and shall not constitute, an offer to sell or solicitation of any offer to buy any security. It is intended for information only and to increase awareness of New Medium Enterprises, Inc. services.

Safe Harbor Statement: The statements in this document relating to future product availability, collaboration and partnership and positive direction are forwardlooking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the aspects anticipated by these forward-looking statements may not, in fact, occur. Factors that could cause or contribute to such differences include, but are not limited to, contractual difficulties, demand for New Medium Enterprises, Inc. products, the future market price of New Medium Enterprises, Inc. common stock and the Company's ability to obtain necessary future financing. EQUITIES Magazine was paid by New Medium Enterprises, Inc. to write and print this profile. Before investing in any security, you are strongly advised to review all public filings of the issuer of such security, which can be found at www.sec.gov, as well as the warnings published by the Securities and Exchange Commission at http://www.sec.gov/investor.shtml.