Beamz Interactive, Inc. Announces 2013 Strategic Initiatives

SCOTTSDALE, AZ--(Marketwired - Jun 17, 2013) - Beamz Interactive, Inc. (OTCQB: BZIC), an emerging growth technology company specializing in state-of-the-art interactive music products, today announced the company's 2013 strategic initiatives, which are expected to provide the foundation for substantial consumer awareness and revenue growth. The announcement was made by Charlie Mollo, President and CEO of Beamz Interactive.

In describing the company's strategic initiatives, Mr. Mollo said, "We expect 2013 to be a pivotal year for Beamz Interactive. Over the past several years we have laid the groundwork for our revolutionary interactive music technology, and now we are ready to initiate a series of high growth initiatives, including the release of a new product line, signing a deal with a world-renowned artist for unique branding opportunities and continuing to capitalize on the increasing worldwide demand for innovative products that effectively combine interactive user experiences and digital media platforms."

Overview

Beamz has developed a state-of-the-art laser controller and interactive music technology that has broad applicability in the multi-billion dollar music, education, healthcare and gaming industries. With 5 patents, 11 patents pending, extensive proprietary software, music licensing rights, and award-winning products, management believes Beamz is positioned to build a substantial consumer music products and technology company over the next several years. The following provides the key strategic initiatives and milestones management expect to achieve in 2013 to take advantages of these opportunities.

Market Priorities and Strategy

In the near term Beamz plans to focus on three key areas of the music market, as follows:

Mass Consumer Music Market: With over 45 million Americans that play a musical instrument and 80% of US citizens saying they wish they could play an instrument, the consumer music market represent a substantial multi-billion market opportunity for Beamz interactive consumer products -- a product family that allows anyone to create and play music regardless of their age or musical experience by simply moving their hands through beams of light. To pursue this market, Beamz is looking to close a deal with a major world-renowned artist to launch an exciting series of new products and marketing initiatives in 2013 -- including a range of direct response TV and internet commercials, a series of potential viral videos, a new web site, various internet marketing initiatives, and a comprehensive social media program. This is expected to be followed with major retail distribution in 2014.

Education, Special Needs & Senior Care Market: In the United States alone, there are approximately 100,000 schools, over 10 million special needs individuals and tens of millions of senior citizens. Beamz has already been successfully placed in over 150 schools and institutions in these areas, received 4 of 5 stars by the National Lekotek Center for children with disabilities, and been given rave reviews from many senior living facilities. To further pursue these market segments, Beamz is developing market specific content for each of the areas, and is establishing relationships with key partners and resellers that target these markets.

DJ and Pro-Audio Market: With tens of millions of potential aspiring DJ's throughout the world, the amateur and professional DJ market represents a multi- billion market opportunity for Beamz. To pursue this market, Beamz has collaborated with Virtual DJ -- the award winning leading DJ software company -- to create a combined Virtual DJ / Beamz product offering that is tailored to the needs of the mass DJ market, and to promote this new product offering.

New Product Line

Beamz currently has over 10,000 units of its first and second generation products in the market. To support the branding and market awareness campaign in 2013 and 2014, Beamz is launching a next generation hardware platform and new product line that further enhances its already exciting offering. This includes:

• Reducing the size of the current Beamz interactive music hardware by 50%
• Adding MIDI capability (the music industry standard)
• Adding wireless capability
• Adding iOS (iPhone and iPad), Windows 8 and Mac capability
• Substantially expanding the music library
• Releasing new education, special needs and senior care content
• Releasing new DJ software for the iOS platform
• Offering Virtual DJ / Beamz DJ software for Mac & PC
• Signing a deal with a highly recognized artist to offer unique branded products

To expand Beamz market for its new interactive music songs and content, Beamz will also release apps for iOS (iPhone and iPad) and Windows 8 that allow the user to experience the Beamz new music format without purchasing the Beamz hardware. This will provide another substantial revenue generation channel. Beamz will be able to sell songs and digital content at a higher margin, while simultaneously building awareness for the Beamz brand and hardware products.

Sales Growth

To finalize the development of the above products, initiate a marketing campaign and artist recruitment, the company anticipates expenses and losses will peak in Q2 and Q3 2013 -- a period when we are winding down sales of our current product offering. Beamz expects to test these new products and marketing plans in Q3, followed by a full roll out in Q4. As a result, expenses are expected to be reduced beginning in Q4, while at the same time sales should begin to accelerate for the fall and holiday season. The net result of this plan is that 2013 should be a pivotal year for Beamz Interactive, providing the foundation for accelerated growth in 2014 and beyond.

With the company's recently announced closing of $2.5 million in convertible debt, Beamz has adequate funding to implement this 2013 plan. However, as announced previously, to provide additional flexibility the company plans to complete the remaining $1.5 million of this $4 million financing to ensure Beamz Interactive is not capital constrained as it enters this high growth phase.

As a result of its 2013 strategic initiatives, 2014 margins are expected to be in excess of 50% on hardware sales, along with even higher margins on digital content and music. Overall, the Beamz management team believes its unique, patented technology offers opportunities to create a successful public company with a longer term objective of achieving in excess of $100 million in annual revenues.

Summary

"We are looking forward to implementing our 2013 strategic initiatives," concluded Mr. Mollo. "Beamz is a revolutionary product that enables anyone to create and play terrific music, regardless of their age or experience level. We believe our new line of products, aggressive marketing plans, and strategic partnerships will position us to introduce our state-of-the-art technology to a worldwide audience. As we enter the next phase of our high growth strategy, Beamz intends to expand our business and drive annual revenues to at least $100 million in the long term, all while maintaining an unequivocal commitment to our music fans and building lasting term shareholder value."

Investors are encouraged to visit the company's Auto-IR page for more information about Beamz. Additional material will be added to the website as it becomes available:
http://www.trilogy-capital.com/autoir/bzic_autoir.html

About Beamz Interactive, Inc.

Based in Scottsdale, AZ, Beamz Interactive, Inc. (OTCQB: BZIC) has created state-of-the-art interactive laser controller technology that can be used to develop new market opportunities in a wide variety of music, education, healthcare, gaming and consumer applications. In its first application, the Company developed an innovative new music technology and product offering that brings music to literally everyone in a way that was previously not possible. Beamz allows people that have no musical background or training to play and enjoy music within minutes, yet it has the depth to enable accomplished DJs, artists and musicians to perform, compose and create highly sophisticated interactive music. Beamz Interactive's technology portfolio includes multiple patents, patents pending and trade secrets covering interactive music, software, laser-based controllers, gaming applications and related designs and devices. For more information on Beamz, please visit: www.thebeamz.com.

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Forward-Looking Statements

This press release may contain forward-looking statements that reflect the Company's current expectations and projections about future results, performance, prospects and opportunities. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required by law, the Company assumes no obligation to update publicly or to revise these forward-looking statements.