e.Digital Corporation (fka EDIG)

[Tenderloin]

NS8 Partners with MidStream Technologies and Amino Communications to Provide Secure Content on-Demand Digital Distribution Network

SEATTLE --(Business Wire)-- Aug. 23, 2004 --

NS8 SDDN Eradicates Digital Piracy and Enables IP Broadband Service Providers to Compete In Content On-Demand Business

NS8 Corporation (NSEO) (OTCBB:NSEO), a leader in the secure digital delivery of on-demand content, today announced the availability of its Secure Content On-Demand Digital Distribution Network (Secure DDN), an industry breakthrough that enables any IP broadband service provider to securely deliver video, music, games, or any type of digital content on-demand to a consumer's PC, television, or personal media device.

NS8Corp has partnered with MidStream Technologies Inc. to provide video streaming servers and with Amino Communications to provide next generation IP-based set-top boxes (STBs) for its SDDN.

NS8Corp has successfully integrated NS8 Security Protocol Integration(TM) (NS8 SPI(TM)), the Company's patent pending digital rights management (DRM) system, with the MidStream MVS2000 server (which currently supports 480 simultaneous streams at 3.75 Mbps) and the Amino AmiNET110 STB in the Company's video on-demand (VOD) laboratory for its IP-to-PC and IP-to-STB-TV initiatives.

The Company streamed NS8 SPI-encoded MPEG2 files from the MidStream server cluster and decoded it successfully on an Amino AmiNET110 STB in a non-secured network environment without any additional security software or hardware. NS8Corp achieved DVD quality video in two configurations: directly through an S-Video out connection from a PC to a flat screen HDTV-ready television, and from a PC to the Amino AmiNET110 STB to a flat screen HDTV-ready television.

These tests demonstrate the Company's ability to provide a transparent PC-based entertainment network environment for the home or to personal media playback devices. The solution maintains the integrity of the on-demand content delivery, payment, management, and audit systems for both content owners and multiple system operators including cable, telecommunications, and direct broadcast satellite providers.

Bailey Shewchuk, Chief Operating Officer for MidStream Technologies, Inc., said "Encryption of digital on-demand content has always been a concern to our customers and has been a fundamental requirement of our product roadmap. We are pleased to partner with NS8 to develop and demonstrate our ability to secure digital content from the studio to the set-top box."

Mike Greenall, Vice President of Marketing of Amino Communications said "We have long recognized that content management, distribution, and protection are important to the development of the broadband video market place. The NS8 SDDN offers a new weapon to combat piracy and gives content owners more confidence in the emerging telco market."

Using NS8 SPI(TM), movie studios, television producers, advertisers, and any owner or aggregator of rich media programming such as video, music, or audio content are now enabled to safely distribute their intellectual property directly to consumers over broadband networks provided by cable, telecommunication and direct broadcast satellite companies.

In addition, content owners can easily archive secure digital rich media content files on their own servers for distribution on any IP-based network, and audit in real-time how their content and usage policies are managed. NS8 SPI enables content owners to immediately revoke permissions for use of content even if the digital file has been distributed and received by or in use by the consumer.

The encryption methodology of NS8 SPI encompasses four fundamental DRM components: content encryption, business rules, royalty management, and real-time tracking and auditing of any NS8 SPI-enabled file wherever it is located on the Internet or IP-based network.

NS8 SPI also enables content owners to establish content-specific business policies to restrict recording by personal or digital video recorders (PVR/DVR) whether the content is streamed or downloaded to the consumer's PC, television, STB, DVR, or personal media device.

"In partnering with MidStream and Amino we can offer a total and secure end-to end content on-demand infrastructure solution at a price considerably more favorable than conventional video on-demand deployments to a digital head-end, central office, or satellite teleport," said Marc Strauch, Chief Marketing Officer of NS8 Corporation. "In addition, the built-in billing capabilities of NS8 SPI integrate with existing accounts payable/receivable and other back-end business and IT systems thereby enabling simpler, quicker and more efficient deployment at an inherently lower total cost of ownership, all while enabling content owners to maintain more effective control over its distribution."

The Company will commercialize IP-based distribution of content on-demand, especially video on-demand, to cable, telecommunication, and direct broadcast satellite companies through the licensing of its NS8 SPI-SDDN Management Console. The Management Console enables content owners to manage the digital security and licensing policies that are interwoven into archived digital content for distribution to various commercial distributors.

The open architecture of NS8 SPI enables easy integration with existing video streaming server technologies and STBs, including those running Microsoft Windows, UNIX, Linux, and Apple Macintosh server operating systems, without imposing additional CPU or memory usage, thereby providing an easy-to-integrate and cost-effective solution.

The NS8 SPI-SDDN Management Console enables entertainment content aggregators and distributors to manage up to 1,000 simultaneous distribution requests from up to 10 content management or content distribution servers per license located at the content owner or telco/cable/satellite facility. Each request can be automatically customized according to distribution rights and licensing policies that can immediately terminate in the event those rights or policies are breached.

The NS8 SPI-SDDN Management Console integrates with existing payment systems of cable, telecommunications, and satellite providers enabling real-time distribution of revenue-sharing of licensed content as the content is viewed by the consumer. The NS8 SPI-DDN Management Console and NS8 SPI-enabled electronic program guide (EPG) systems enable real-time auditing of viewing audiences for direct reporting to the cable/telco/satellite company or content owner to ensure the gathering of accurate licensing, accounting, and behavioral data for advertising or dedicated broadcasts of media.

About NS8 Corporation

NS8 Corporation (http://www.ns8corp.net) is a Delaware corporation specializing in the development of leading edge digital media security architecture, smart-encryption and non-resident (server-based) software technologies. Headquartered in Seattle, Washington, NS8Corp has offices in Seattle and Minnesota with primary research and development in British Columbia, Canada.

About MidStream Technologies

Based in Bellevue, WA, MidStream Technologies (http://www.midstream.com) is a leading provider of next generation media delivery network architectures and solutions designed for CATV and telecommunication system operators deploying Video On-Demand (VOD) and Network Digital Video Recording (nDVR) services. The company develops digital video on-demand streaming, storage, and asset management infrastructure components which provide flexibility, quality, and next generation features for service providers. The company was founded in 1997 and is privately held.

About Amino Communications

Amino Communications (http://www.aminocom.com) is a designer and supplier of electronic systems, specialising in products for digital broadcast and on-demand TV, IPTV (telco triple-play applications), and in-home multimedia distribution.

The Amino range of small, low-cost, high functionality set-top boxes and gateway products is designed for consumer applications in telecom, satellite and digital terrestrial broadcast markets, as well as on-demand systems for hotels and hospitality markets, healthcare, retail and education. The company partners with world-leading companies in content aggregation, middleware, conditional access, and head-end systems.

Amino Communications is part of Amino Technologies plc listed on the London Stock Exchange AIM, symbol AMO. Amino is based near Cambridge, UK, and has offices in Atlanta, Georgia.