LOS ANGELES, June 27, 2001 (PRIMEZONE) -- Quietly, streaming video pioneer Pervasys, Inc. (NQB:PVYS) has developed a multi-tiered methodology to bring Internet and Intranet streaming video and audio to the production stage of the entertainment industry. More importantly, this capability is economical and immediate. In his announcement, Michael Meyer, Chairman of Pervasys laid out a detailed plan of action developed from nearly a year of research and negotiations with a vast cross section of the entertainment industry. "We are very fortunate", Mr. Meyer said, "that Pervasys has a number of Entertainment veterans among its officers, Board, and Board of Advisors. This has allowed us to draw on our own experience and wealth of contacts to craft a comprehensive approach to digitizing the production process with our proprietary products in a cost effective, non-intrusive solution, which we call the 'Convergence Studio'. We believe that it is not just the Internet, telephone and television which is converging, rather it is all forms of intellectual property that are converging through digital media, including film, music, software development, PC games and dot-coms. We are extremely fortunate to have linkages in all these industries, and the Convergence Studio is not so much a brilliant break-through as it is a natural development, drawing on the deep knowledge and understanding of these various industries by our associates and identifying the needs, opportunities and trends which Pervasys technology can fulfill today."
The Convergence Studio, as laid out by Mr. Meyer, entails 9 different elements, each mutually independent, allowing for a great deal of customization and scalability. The three studios currently negotiating for Convergence Studio installations have different elements and emphasis, but the core concept is constant, an efficient, cost effective means by which production speed can be increased, costs minimized and control maintained while opening up potential new revenue streams. The Convergence Studio addresses these goals directly. Security is a major priority in the industry, not just for the expensive equipment required in production, but also because of the custom designed props and items, the loss of which could cause costly delays in production, as well as the concern of threat of theft of creative content. By its very nature, most film and television production is spread out geographically, even in the confines of a single studio. The Convergence Studio allows these various departments to coordinate with each other from their respective departments, thus creating efficiencies. Since the industry is so heavily dependent on visuals, FeLIX video conferencing allows participants to see the proposed prop or wardrobe changes without having everyone meet face to face for a decision. Also, Pervasys' FeLIX streaming video can be used to monitor and tape stage activities, during filming as well as on dark stages, prop rooms, wardrobe, etc. on and off site, in real time. Further, production offices, which are usually at a distance form the production stage can monitor the production from their desk, vastly increasing accountability.
Today's productions are truly global with Hollywood based companies producing in Canada, Australia and New Zealand regularly. Usually the first the home office sees of the production is the "dailies," the processed negatives of the day's shootings, flown or couriered daily. Hence, any changes will be delayed, wasting a day or more of expensive shooting. With the Convergence Studio the home office can make changes in real time, or on a tape delay basis, the same day. A single day of such savings could pay for the entire cost of the Convergent Studio.
A large portion of current production is shot on independent leased sound stages. These independent studios derive their income from leasing their facilities and equipment to media production companies. By becoming Convergence Studios, these independents hold a competitive advantage in leasing, commanding higher prices while creating new revenue streams by renting the Convergence components to their clients. With the use of FeLIX streaming video, the studio can give tours of their facility to producers anywhere in the world, over the Internet and respond to questions in real time. This will be effective for any creative facility including post-production, animation, etc. The Convergence Studio can also provide independents an income stream from a jointly operated Network Operating Center (NOC). The NOC would be incorporated into Pervasys' P.E.N.S. distributed serving network, allowing the studio to receive income from VOD and live content storage and distribution.
The use of FeLIX and P.E.N.S. opens the door to pay per view over the Internet for in-studio music groups, "first peek" concert promotion, pre-release "the making of" events, etc. It is also a tremendous tool for developing, maintaining and expanding fan base for new and existing projects or acts. The fan club can be live and interactive. A fan can type in a question and have the star answer them directly, by name in a live video-audio over the computer. It also allows for new revenue opportunities by providing a medium to market fan affinity products during these broadcasts.
In his conclusion, Mr. Meyer noted that the Convergence Studio is not mutually exclusive to the previously announced plans of the Major Studios. Rather, that it is an enhancement to those plans. He finished by saying, "The scalability and flexibility of our products can provide a unique solution to the Majors' proprietary efforts, while bringing true 21st Century capabilities to the smaller studios who could not afford to duplicate those projects. Simultaneously, the Convergence Studio can enable dot-coms, PC game developers, advertisers, Internet Radio, almost any medium, to affordably provide video content in their offerings and a means by which it can be distributed on a profitable basis."
The Pervasys technical team is based in California and Vancouver, B.C. Management, marketing and administrative offices are located in Los Angeles, Vancouver, Canada, and Seoul, Korea. Detailed information on Pervasys and its technologies can be found on the Internet at 216.18.9.37.
Among the Company's market ready innovations are: the Afterburner(TM) web server, the FeLIX Streaming Video Producer, FeLIX Video Broadcast Servers and Rebroadcast Servers, FeLIX Videoconferencing units, proprietary Forward Error Correcting Internet protocols, and P.E.N.S. pervasive balanced networking solutions. These products are designed to promote multimedia convergence by overcoming current Internet constraints in bandwidth availability and routing efficiency, especially as applied to the transmission of high-quality video and audio content.
Further information on Pervasys products can be obtained on 216.18.9.37, or by contacting:
Michael Meyer (US) 1-323-571-3717, michaellmeyer@yahoo.com; Brian Sammartino (Canada), 1-604-732-1291, pervasysinc@yahoo.com; Chan Son Jeon (Korea), 02-698-1279.
For Financial Relations contact Glen Chazak, DeBenn Capital, 1-310-285-4602
Statements included within this press release that are not historical in nature constitute forward-looking statements for the purpose of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Investors are cautioned that this press release contains certain such forward-looking statements that involve substantial risks and uncertainties. When used, the words "anticipate", "believe", "estimate", "expect", and similar expressions as they relate to the Company or its management are intended to identify such forward-looking statements. There can be no assurance that the Company will be able to market, sell or deliver successfully its services inside or outside the United States, given risk factors including but not limited to unexpected changes in regulatory requirements, export restrictions, tariffs and other trade barriers, challenges in staffing and managing foreign operations, differing technology standards, employment laws and practices in foreign countries, longer payment cycles, problems in collecting accounts receivable, political instability, fluctuations in currency exchange rates, imposition of currency exchange controls, seasonal restrictions in business activity and potentially adverse tax consequences, any of which could adversely affect the Company's international operations. There can be no assurance that one or more of these factors will not have a material adverse affect on the Company's current or future international operations and consequently, on the Company's business, results of operations, and financial condition.