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Wednesday, 04/23/2008 10:38:24 PM

Wednesday, April 23, 2008 10:38:24 PM

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USA Video Interactive (OTCBB: USVO)




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Four Bollywood Production and Distribution Companies to Use USVO's MediaSentinel Anti-Piracy Product
Four production and distribution companies in Bollywood, the world's largest film and entertainment industry, based in Mumbai, India, will begin using USA Video Interactive Corp.'s (OTCBB: USVO) unique digital watermarking product, MediaSentinel™, to thwart piracy domestically and internationally. The four companies will begin using MediaSentinel™ through PIO TV Pvt. Ltd. (www.pioTV.com), India's only digital integrated media platform company.
Munish Gupta, Chairman & CEO of PIO TV, announced today that in continuation of PIO TV's use of MediaSentinel™, his company was now working with leading production and distribution studios in Mumbai: Prachar Communications Ltd., Time Multimedia Pvt. Ltd., Baba Films Ltd., and Gold Entertainment Pvt. Ltd. Together these four companies, two of which are public companies, control thousands of feature films that they produce, acquire the rights of, and distribute, including hundreds of hours of television content.
Speaking on behalf of the four companies, Managing Director of Prachar Communications Ltd., Mr. Ratan Jain, said a solution like MediaSentinel™ "was long awaited." India and the overseas market for Bollywood are "fraught with piracy that causes billions of dollars in lost revenues." Jain added "for years we have wondered how to combat this (piracy) menace and bring in more revenues to produce and distribute more and better films. The biggest issue facing us is how to deter pirates and produce evidence for law enforcement to help us shut down pirates. MediaSentinel™ has provided us the means to that end." Jain said he and his associates were convinced the MediaSentinel™, digital watermarking product from USVO for offline use, and MediaEscort™, now deployed by Twentieth Century Fox Home Entertainment in Hollywood, for online use, represent "a turning point for the protection of our copyright content. It makes tremendous sense to use this technology to digitally watermark a full length feature film and the cost is very economical versus the tens of thousands of dollars lost to piracy."
"For four years we've been hard at work establishing ourselves as a player in anti-piracy technology to the film industry," stated Edwin Molina, CEO of USVO. "We're building momentum as this month we announced a deal with Twentieth Century Fox Home Entertainment. And now through our relationship with PIO TV, we're beginning to establish ourselves in Bollywood too, starting with these four production houses."
The four Bollywood production and distribution houses will begin using the PIO TV deployed MediaSentinel™ workstation currently installed at Prachar Communications' office in Ville Parle, Mumbai, India. For further information on USVO's relationship with PIO TV, please see USVO's press release dated February 21, 2008.
Reasons to Consider Investing in USVO
USA Video Interactive designs and markets technology for the secure delivery of digital media.
Including within their custom solutions are various anti-piracy systems including the proprietary MediaSentinel and SmartMarks..
MediaSentinel and SmartMarks to help the film and television industry fight media content piracy.
Company is also unveiling solutions to prevent piracy with technologies such as Video on Demand
Twentieth Century Fox Home Entertainment has recently announced that it has gone live with USVO's new copy protection software, MediaEscort™, to protect the Studio's filmed entertainment content that is streamed via the Internet to its various trade business partners in advance of DVD availability.
USVO has begun working with other FOX divisions and subsidiaries to broaden their working relationship and revenue possibilities for the company.
USA Video aims to establish itself as the preeminent provider of anti-piracy technology to curtail the immense loss of revenue suffered by video providers..
Deloitte names data/video and other forms media protection as one of 2008's tech trends.
According to an IPI study film piracy is responsible for:
• $5.5 billion in lost annual earnings among U.S workers
• 141,030 jobs lost
• $837 million in lost annual tax revenue
• $20.5 billion in lost annual output to all U.S. industries
USA Video has completed and delivered the first of two installments of its MediaEscort™ anti-piracy product.
MediaSentinel is an anti-piracy device that embeds SmartMarks—invisible forensic information—in every frame of video content. SmartMarks provide the proof courts need to protect intellectual property rights, indicting and convicting the individuals who steal the original material.
MediaSentinel is available as a standalone product; SmartMarks may also be created on demand through our certified Anti- Piracy Provider service network. This allows the end user to quickly establish anti-piracy controls on their end products.
Company Overview
USA Video Interactive Corp. designs and markets technology for delivery of digital media. Our products add anti-piracy solutions to existing distribution channels and extend distribution into interactive channels with Video-on-Demand.

Founded in 1986, our first media technology was based on our Store-and-Forward Videoon- Demand patent (#5,130,792), filed in 1990. It has been cited by at least 206 subsequent patents. We hold similar patents in England, France, Spain, Italy, Germany, Canada, and Japan. The technology covers the transmission of video content over networks faster than "real time." Video-on-Demand is the mechanism by which the delivery of compressed video is managed and, together with compression technology, facilitates the delivery of video to an end user in a timely and interactive fashion. With our current focus on MediaSentinel and SmartMarks, USA Video Interactive Corp. is helping the film and television industry fight piracy, providing a robust means for producers and distributors to invisibly mark their content with the proof authorities need to catch the crooks who steal films, television shows, and video content.
MediaSentinel is an anti-piracy device that embeds SmartMarks—invisible forensic information—in every frame of video content. SmartMarks provide the proof courts need to protect intellectual property rights, indicting and convicting the individuals who steal the original material. Its use by producers and distributors of film and television content allows unprecedented, secure access to a wide range of distribution markets and methods which otherwise represent a significant piracy risk. MediaSentinel is available as a standalone product; SmartMarks may also be created on demand through our certified Anti- Piracy Provider service network.

The company began as First Commercial Financial Group Inc. and eventually became USA Video Interactive Corp in 1995 to focus on the digital media business. We have five wholly-owned subsidiaries: USA Video (California) Corp., USA Video Corp., Old Lyme Productions Inc., USA Video Technologies, Inc., and USVO, Inc. Our executive and corporate offices are located in Niantic, Connecticut, and our Canadian offices are located in Vancouver, British Columbia.

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