Teletouch Announces Signing of Exclusive Three-Year Master Distributor Agreement for Retail and Third-Party Distribution in North America with ROK Entertainment US, Inc., a Majority-Owned Affiliate of UK-Based ROK Corporation Ltd. Wednesday June 21, 4:08 pm ET Patented SD-Memory Card Compression and Digital Rights Management (DRM) Technology Allows Users to Watch Movies, TV Shows, Play Games and Enjoy a Variety of Content on Their Cellular and Other Mobile Devices
FORT WORTH, Texas--(BUSINESS WIRE)--June 21, 2006--Teletouch Communications, Inc. (AMEX:TLL - News) today announced that it signed an exclusive, three-year Master Distributor Agreement for North America with Los Angeles, CA-based ROK Entertainment US, Inc., a majority-owned affiliate of United Kingdom-based ROK Corporation, Ltd., a maker of technology that allows people to watch movies and TV shows, play games and enjoy a variety of content on their cellular handsets and other portable devices. Although confidential financial terms were not disclosed, the comprehensive Master Agreement grants Teletouch the exclusive right to distribute ROK's patented ROK Player, related intellectual property, products and licensed content directly to retailers, third-party distributors and wholesalers in the United States, Mexico and Canada. The ROK software provides full Digital Rights Management, or "DRM" protection for content compressed by the patented technology, and is especially designed for portable devices, including cell phones and other devices that use commonly available SD-chip cards and similar storage media.
Source: Teletouch Communications, Inc.
· ROK Player with DRM Protected Content Inserted Into Phone - Plug & Play (Photo: Business Wire). View Multimedia Gallery
Jonathan Kendrick, CEO of ROK Corporation stated, "The patented ROK Player technology does four key things. It compresses rich content onto SD memory cards in a proprietary manner, reducing a two-hour movie to fit onto a single 64MB card for use on portable devices. Uncompressed, that same movie would take at least a 500MB card, which of course is much more expensive. Secondly, the ROK Player is built to be "plug-and-play," for ease of use in compatible devices. Third, it plays full-frame high-resolution video at 24 frames per second (full motion), creating a more satisfactory user experience."
Kendrick continued, "But perhaps most important to content owners such as studios, record labels and game developers is that their content will be delivered with full DRM protections built right in. Frankly, it's far easier for a hacker to rip a DVD than one of our ROK Player loaded chips."
John-Paul DeJoria, CEO of John Paul Mitchell Systems and Patron Tequila, among other holdings, said this, "As an early, significant investor in ROK Entertainment, I believe in this technology. My eight-year-old son can easily work the player, and watching movies or playing games on mobile devices is the future. With ROK's recently granted patents, I think movie studios, mobile game developers, advertisers and other content providers will want the protections afforded by these patented ROK technologies."
Kendrick added, "We chose Teletouch as our North American distributor because of its long history in the wireless market, for its help desk and call center capabilities, for its executives' extensive retail experience and for its deep relationships in the wireless and consumer electronics business, both directly and through its commonly controlled affiliate, Progressive Concepts, Inc. This relationship will increase our speed to market, and will also allow us to better concentrate our own resources on establishing large content licensing deals, continued software-to-handset utilization development and on completing our U.S. Internet-based white-label Media Store. We are very excited to work with the Teletouch team."
Teletouch CEO, T. A. "Kip" Hyde, Jr., stated, "Last month, we announced a fundamental strategic shift 'back' towards the business of mobile. By establishing this exclusive retail and wholesale distribution agreement for an entirely new portable multimedia content medium in North America, the Company is taking the first steps toward directly participating in the high-growth, multi-billion dollar cellular handset and content download markets. ROK's patented technologies, which provide the ability to watch movies, TV shows, music videos and play casual games, are at the forefront of this revolutionary change in the mobile industry."
Hyde concluded, "Specifically, ROK's ability to provide DRM content protection for rich-media downloaded directly from the Internet, Over-the-Air, or through retail kiosks for use on a cell phone -- the most widely available consumer electronic portable device today -- represents an enormous new sales opportunity for retailers of many kinds, including big-box and chain consumer electronics stores, theaters, music and book stores, as well as various cellular and emerging WiFi carriers, MVNO's and others. The opportunity for Teletouch to become an exclusive distributor of a DVD-replacement technology that fits in the palm of your hand is a once-in-a-generation business opportunity, and we are pleased that ROK has selected us for the task."
About ROK Entertainment US, Inc.
Formed in 2004 by noted UK entrepreneur Jonathan Kendrick and John-Paul DeJoria, CEO of John Paul Mitchell Systems and Patron Tequila, ROK Entertainment is privately-owned with a mandate to create original and innovative technologies to deliver full-length content and entertainment to mobile phones and other portable devices. ROK was awarded a primary patent in January 2006 for the storage of DRM-protected audio-visual content on memory cards for play on mobile phones and other mobile devices. ROK Entertainment is a subsidiary of ROK Corporation, which provides technologies such as content-loaded memory cards and multi-channel mobile TV over 2.5G and above GPRS networks. With more than 100 staff worldwide, ROK has offices in the UK, Los Angeles and Beijing with Joint Venture partnerships in Brazil, Russia and Taiwan. More information about these companies and leading edge technologies is available at www.rokcorp.com, www.rokent.com, www.rokplayer.com, www.rok.tv and www.rokent.com.
About Progressive Concepts, Inc.
In continuous operation for over 30-years, privately-held PCI is a leading provider of cellular voice, data, and entertainment products and branded wireless services to individuals, businesses, and government agencies through its chain of retail stores (Hawk Electronics), branded sub-agents and direct sales force throughout Texas and Arkansas. PCI provides the cellular services on the Cingular Wireless network, and maintains its own billing, data and customer service operations for its nearly 100,000 subscribers, businesses and other licensed clients. PCI also operates a significant wholesale distribution business serving smaller cellular and automotive retailers, car dealers and cellular service providers throughout the country. More information about PCI and Hawk Electronics can be found at www.hawkelectronics.com.
About Teletouch Communications
Teletouch offers a comprehensive suite of telecommunications services, including cellular, two-way radio communications, GPS-telemetry and wireless messaging services throughout the United States. TLL acquires, bills and supports a large, primarily commercial business and government base of subscribers, under its own network of FCC licensed spectrum in Texas, Louisiana, Arkansas, Oklahoma, Alabama, Missouri, Mississippi, Tennessee, and Florida. Teletouch's common stock is traded on the American Stock Exchange under stock symbol: TLL. Additional information about Teletouch can be found at: www.teletouch.com.
All statements in this news release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the caption "Additional Factors That May Affect Our Business" in the Company's most recent Form 10-K and 10-Q filings, and amendments thereto. In addition, we operate in a highly competitive and rapidly changing environment, and new risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise any forward-looking statement.
Teletouch Communications, Inc. Press & Investors Contact: Amy Gossett, 800-232-3888 investors@teletouch.com or ROK Entertainment US, Inc. Doug Dyer, 310-849-2617 doug.dyer@rokcorp.com
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