E-DATA FORMS ADVISORY BOARD TO ENHANCE SHAREHOLDER VALUE
THROUGH E-COMMERCE JOINT VENTURES;
Explores music industry first to exploit digital distribution patent;
Cautions corporate governance issue resolution is first priority
New York, NY ...May 22, 2000... E-data Corporation (OTC: EDTA) today announced plans to enter the emerging market for distribution of digital products through kiosk networks. New chairman Scott Hillstrom disclosed the formation of a blue-ribbon E-data Advisory Board of business and industry experts who will guide the company into the fast developing digital product distribution arena in the U.S. and Europe.
The new advisory board, to be chaired by New York businessman Louis Levine, will initially explore opportunities for the distribution of music through kiosks established in retail settings. The company is currently recruiting twelve advisory board members from the e-commerce, entertainment and business communities. Appointed to date are four leading authorities in these areas:
Peter Kuyper, Chairman and CEO, Motion Picture Licensing Corporation
Don Maggi, Internet music industry consultant
John Reece, former VP-Information Technology at Time Warner
Major General William F. Ward, U S Army (retired)
"As broadband technology gets cheaper, access to digital products at retail locations will become ubiquitous," Hillstrom said. "Music shops, gas stations, grocery and convenience stores, shopping malls and other settings with high consumer traffic will offer music, movies, software, books, greeting cards, tickets and other products through kiosks which will be as common as ATMs are today," he said.
Several U.S. based initiatives are currently preparing to launch networks for the distribution of music through kiosks placed in retail settings, Hillstrom noted.
"E-data's strategy is to partner with firms in various industry segments, bringing to each the extraordinary competitive advantage that only its patents can provide," Hillstrom said. Segments include content providers operating in the U.S., Canada and nine European countries; digital rights management firms; information technology firms and retail site operators. In the U.S., E-data is especially interested in several of the vertically-integrating distribution networks planning kiosk network roll-outs later this year. In Europe, the company is seeking partners with whom to develop a pan-European network.
Typically, kiosk distribution models for music involve the placement of kiosks in locations experiencing high levels of consumer traffic. Consumers select specific songs which the kiosk copies onto a compact disc while they wait. Eventually, other digital products will also become available.
While there remain technical issues concerning its U.S. patent's coverage of particular methods that may be used to distribute digital products, E-data's U.S. patent has been ruled by a Federal District Court in New York to cover distribution of digital products where the specific patented method is used. "Even under the most narrow interpretation of our patents, we are in a position to supercharge the competitive positioning of our partners in the exciting new markets for digital retailing," Hillstrom said.
E-data is awaiting a ruling from the U.S. Court of Appeals where the company has applied to broaden the District Court's interpretation of its U.S. patent. "If the ruling expands the coverage of the U.S. patent, E-data will be positioned to enhance the competitive position of its partners even further. But the company's prospects are outstanding regardless of the outcome of the appeal," Hillstrom said.
Meanwhile, E-data will continue to focus on resolving corporate governance issues inherited from previous management. Hillstrom cautioned that legal review of such matters as share capitalization would proceed. "There may be some bumps on the road to realizing our potential," he noted, "but we are confident that at last we are moving E-data towards a bright future."
E-data Corporation, formerly known as Interactive Gift Express, holds U.S. Patent No. 4,58,643 entitled "System for Reproducing Information in Material Objects at a Point of Sale Location" and corresponding Canadian, UK and European patents.
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Note: This press release for E-data Corporation may contain "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 regarding events, conditions and financial trends that may affect the company's operating results and financial position. Prospective investors are cautioned that forward-looking statements are not guarantees of future performance. Actual events or results may differ from the company's expectations, which are subject to various risks and uncertainties including but not limited to protracted judicial proceedings, growth trends in e-commerce and the ability of the company to finance its licensing and marketing activities.
E-data Contact:
Scott Hillstrom, Chairman
(212) 425-6100
Agency Contact:
Warren J. Cavior, The Cavior Organization
(212) 687-6070 / caviorg@aol.com
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