PHOENIX, Aug. 16, 2005 (PRIMEZONE) -- MediaMax Technology Corporation (OTCBB:MMXT), seller of MediaMax(tm), America's most accepted and best selling content protection and enhancement technology for audio CDs, announced today that major recording industry leaders are now confirming that uncontrolled CD burning of record labels' copyrighted materials has been the leading contributor to the declining sales of newly released CDs and associated profits.
According to Mitch Bainwol, chief executive for the Recording Industry Association of America speaking at the NARM Insights and Sounds.05 event in San Diego (www.narm.com), "Burned CDs accounted for 29 percent of all recorded music obtained by fans in 2004, compared to 16 percent attributed to downloads from online file sharing networks. CD burning is a problem that is really undermining sales. (Copy protection technology) is an answer to the problem that clearly the marketplace is going to see more of." According to the story written by Associated Press writer, Alex Veiga, the data to which Mr. Bainwol is referring was compiled by the NPD Group (http://www.npd.com) and went on to suggest that about half of all sales obtained by music fans in 2004 were the result of authorized CD sales and about 4 percent from paid music downloads. (http://www.signonsandiego.com/news).
Several national news articles published within the past week report that the platinum-selling Dave Mathews Band release 'Stand Up' and the gold-selling CD 'In Your Honor' from the Foo Fighters have been selling well in spite of the presence of copy protection. The articles clearly indicate that there is an industry-wide need for copy protection technology like SunnComm's MediaMax and that the average consumers are accepting the alternative authorized methodologies. MediaMax has been well received in the marketplace because consumers are provided with the ability to move the music to their PC or Mac's, portable music players, and in addition, are afforded the ability to make a limited number of uncopyable backup CDs in an authorized and controlled way. Premium content on the MediaMax CD such as artist- and label-approved bonus content provides additional purchase incentives and entertainment value to the consumer that are specifically designed to improve the overall consumer experience and retail sales.
SunnComm president, Peter H. Jacobs, points out, "As early as 2002, SunnComm recognized the significant damage that uncontrolled CD Burning was causing the music industry and saw it as a valuable business opportunity!: 'SunnComm Unveils MediaMax CD-3(tm) Technologies that Limit Unlicensed Music File-Copying While Expanding a Consumer's CD Experience' (http://www.sunncomm.com/press/pressrelease.asp?prid=200210150900). We felt back then that so-called 'casual' copying and not illicit peer-to-peer file sharing was (and continues to be) the recording and music industry's biggest problem. The evolved design philosophy of MediaMax Technology and customer service was born out of that undeniable reality perspective we knew existed back in 2002."
Jacobs continued, "The many certified platinum and gold CD releases MediaMax Technology has enjoyed to date reinforces our belief that MediaMax copy protection and enhancement products are perfectly positioned to help the labels and RIAA stem this No. 1 cause of consumer piracy while making a significant contribution toward increasing retail CD sales and the entire music industry's bottom line! Our agenda and company resources are focused on protecting music, no matter whether it's delivered via CD, Internet, wireless, or kiosk. SunnComm's unprecedented achievements to date and future growth stemming from our current successful products and new product development are crystal clear signs of increasing revenues and shareholder value!"
About SunnComm
In just five years, SunnComm International Inc. (Pink Sheets:SCMI) has become the leader in digital content enhancement and security technology for audio compact disc media. MediaMax can be found on many gold, platinum and double-platinum selling albums including Dave Matthews' platinum-selling 'Stand Up' and most recently, Foo Fighters' 'In Your Honor' and The Backstreet Boys' 'Never Gone.' Other popular releases that include MediaMax are Anthony Hamilton's platinum CD 'Comin' From Where I'm From,' J-Kwon's gold 'Hood Hop,' and Velvet Revolver's 'Contraband', which reached the #1 spot on Billboard's Top 200 Album Chart and achieved double-platinum status by selling more than 2 million units. Additionally, SunnComm's MediaMax technology has appeared on many other best-selling albums, totaling over 100 commercially released CD titles across more than 30 record labels. MediaMax Technology Corp. and SunnComm earn royalties for every disc manufactured that includes its proprietary copy management and enhancement software.
MediaMax is mastered directly on the audio CD and is accessible using a personal computer. SunnComm was the first company to commercially release a content-protected audio CD in the United States and co-developed and implemented an early version of the Microsoft Windows Media Data Session Toolkit (www.microsoft.com/presspass/press/2003/jan03/01-20SessionToolkitPR.asp). Bonus features include on-board press kits, artist-related promotions, videos, song lyrics, artist bio page, photo gallery, Web links, and tune-sharing capability through SunnComm's MusicMail(tm) functionality. For more detailed information about the company, its vision or philosophy, personnel, partners, and customers, please visit the company's Web site at (www.sunncomm.com), or call the Company directly at (602) 267-7500.
About MediaMax Technology
MediaMax Technology Corporation (OTCBB:MMXT), formerly QuietTiger, Inc. (OTCBB:QTIG) with its international reach, implements the delivery of digital content security products for the music and entertainment industry. With established long-term industry contacts throughout the world, the company understands the challenges surrounding digital content management and protection. The MediaMax Technology team of professionals has spent more than 50 years in the music and movie industry. MediaMax Technology (www.mediamaxtechnology.com) is the exclusive sales and marketing arm for SunnComm's MediaMax suite of products.
For additional information about the company, its vision, philosophy, partners, and customers, please visit the Company's Web site at www.mediamaxtechnology.com.
The names of actual companies and products mentioned herein may be the trademarks of their respective owners.
This news release contains predictions, projections, and other statements about the future that are intended to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of l995 (collectively, "forward-looking statements"). Forward-looking statements relate to various aspects of the Company's operations and strategies, including but not limited to the effects of having experienced significant losses in the past and the risk that the Company may incur losses in the future; the Company's limited liquidity and significant indebtedness; its sales forecasts for future periods not being attained and the risk that the Company will not conclude additional revenue-generating license agreements covering its content protection and enhancement technologies; the Company's marketing, product development, acquisition investments, licensing and other strategies not being successful; possible future issuances of debt or equity securities; the possible incurrence of significant patent litigation expenses or adverse legal determinations that find our patents not to be valid; new business development and industry trends; the possible need to raise additional capital in order to meet the Company's obligations and most other statements that are not historical in nature. Important factors that could cause actual results to differ materially from those described in the forward-looking statements are described in cautionary statements included in this news release. In assessing forward-looking statements, readers are urged to consider carefully these cautionary statements. Forward-looking statements speak only as of the date of this news release, and the Company disclaims any obligations to update such statements.