BAY CITY, Mich. and TORONTO, June 29, 2005 (PRIMEZONE) -- Sciax Corp. (Pink Sheets:SCXC) announced today that multi-media executive Giorgio Costonis who is also president of its subsidiary RMD Entertainment Inc. has been selected to become their new President. He will be responsible for developing the company's new business model. While Sciax once focused exclusively on manufacturing homeland defense products, Costonis is revamping the company by putting the emphasis on products and services that serve entertainment, lifestyle, and technology-based arenas.
Working alongside a team of marketing experts and having access to prolific data collection tools, Costonis has his finger on the pulse of a key demographic that drives the American economy . . . 14-24 year olds. Costonis is focused on modifying Sciax's business philosophy to specifically target this core consumer cross-section by creating a company directed specifically at them.
The development of a strong matrix of products in high fashion and music will be a key focus. Hip-Hop in particular remains the cornerstone of Costonis' plan to transform Sciax. In a recent deal with Bungalo Records, exclusively distributed by Universal Music & Video Distribution, Costonis secured a distribution deal for RMD Entertainment Inc., a subsidiary of Sciax Corp., which guarantees North American circulation of any music-related endeavor that emerges from RMD.
Hip-Hop music has proven itself to be a cultural and economic phenomenon by exceeding the billion-dollar mark in the U.S. Costonis has made it quite evident that he will take successful Hip-Hop oriented business models and use advanced technological and marketing resources to bring them to the next level. Much like Sean "P. Diddy" Combs took Hip-Hop culture and applied it to fashion; Costonis believes that expansive revenue streams are waiting to open up if you apply technology to Hip-Hop.
Costonis said: We are currently in a unique position in that we feel we can compete effectively in both the Hip-Hop Music Marketplace and Technology Marketplace on a global level fairly quickly. Not only will we be generating consistent revenue through our own music releases, we will continue to develop easy to use, interactive formats, which will have the capability to deliver music and video content on a global scale. More importantly, our formats will be very entertaining to the end user. Sciax is now actively pursuing additional partnerships and acquisitions that will assist in this endeavor. It is our belief that this type of business structure is the next step in the evolutionary process of Hip-Hop and the companies that produce it. Furthermore, these same companies will reap additional revenue from the numerous ancillary products that are cross-marketed to the same audience. Our strategy is to add pieces that have the potential for more revenue in the short term, rather than go into a long-standing development stage. "The market is there and has been for quite some time and the technology is constantly evolving, allowing us to become more flexible with distribution systems and our overall marketing strategy. All of the companies that we have in Sciax should complement each other, make each other better, and adhere to an overall philosophy and corporate culture. We want people to look at us as a strong organization, not just a holding company on the stock exchange."
About Sciax
Sciax is an emerging leader in defense imaging systems for law enforcement and military personnel engaged in counter-terrorism and other special security operations. Sciax America Inc. and Sciax Technology Inc. are wholly owned subsidiaries of Sciax Corp. (Pink Sheets:SCXC). www.sciax.com
Wolf Pack, the company's tactical remote viewing system, is manufactured under license from Eomax Corp., and is used by law enforcement and military organizations in North America and Europe. Customers include military and law enforcement agencies of the U.S. and German Governments, contraband interdiction units of Canada Customs, and LAPD-SWAT.
About RMD Entertainment Inc.
RMD has experienced good success on the international level with its dance hits and productions involving a variety of styles by many well-known artists. RMD has produced a wide variety of music including Pop, World Music, Hip-Hop, Rock, Trance, Breaks, Tribal House, and Underground House Music. RMD's producers have collaborated with some of the most influential names in the music scene today such as Sting, David Byrne of the Talking Heads, George Kranz, Freedom Williams of C & C Music Factory, Steve Winwood, Robin Scott, and Jazz Saxophone legend Bill Evans.
This release contains forward-looking statements with respect to the results of operations and business of Sciax Technology Inc., Sciax America Inc., RMD Entertainment Inc. and Sciax Corp. which involves risks and uncertainties. The Company's actual future results could materially differ from those discussed. Risks and uncertainties of the Company will be detailed from time to time in the Company's periodic reports. The Company intends that such statements about the Company's future expectations, including future revenues and enforcement and defense imaging system earnings, entertainment product earnings, and all other forward looking statements be subject to the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995.