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audikidpsr

08/27/10 2:19 AM

#1116 RE: audikidpsr #1069

Ad Insertion Technology

In conjunction with our entertainment and information services, we have recently begun to capitalize on the additional revenue source provided by ad insertion technology. Ad insertion technology allows us to produce revenues by selling commercial ad space which is inserted into our in-room entertainment programming. While this revenue source is common in the residential cable services market, it is revolutionary in the hotel industry. We recently entered into an agreement with Synergetic Technologies, Inc. ( http://www.adsystemscatv.com/hotel-video-advertising.html OTC:SYGG), a provider of Digital Video Ad Insertion Technology, to install its Ad Systems 8 channel digital ad insertion system to our domestic lodging customer base. With the deployment of Ad Systems digital ad insertion system, we can sell ad space to mainstream advertisers, deploy per inquiry ads, and promote our pay-per-view movies, all of which allows us to add to our top-line growth. With our current combined customer base, we can effectively deliver 20,000 commercials to more than 100,000 travelers per month with potential revenues exceeding $60,000 per month once the ad insertion system is fully deployed. These new capabilities will give us a unique marketing edge that will help grow our room base and increase our overall revenues.