New Medium Enterprises Announces European Content Distribution Agreement

High-Definition VMD Format Films to be Available to German Speaking Market in Coming Months


LONDON, Oct. 13, 2006 (PRIMEZONE) -- New Medium Enterprises (NME) (OTCBB:NMEN), developers of high definition platforms, processes and technologies, has concluded a content distribution deal with prominent German distributor, VCL. The deal, signed during the Mipcom conference in Cannes, France, this week will initially see the availability of up to 10 HD VMD titles in German-speaking countries by January 2007, with VCL to make available its entire catalogue of 800 titles to NME.

The announcement of the content distribution agreement with VCL coincided with the release of NME's first-generation HD VMD player, offering true high definition to the international mass consumer market at an affordable price, which was also revealed at Mipcom. The player, which will retail for $175, will allow consumers, for the first time, to experience high definition at a low cost on a backwards-compatible player capable of playing existing DVD formats. The player utilizes NME's HD VMD format, a natural successor to the existing DVD platform.

According to Datty Ruth, CEO of VCL, the new HD VMD format has the potential to radically influence the European consumer market for high definition content. "We're very pleased to have signed this content distribution agreement with NME. VCL has a long-standing history of supporting emerging formats where it is clear that they have the potential to shape the market for the benefit of consumers, as is the case with HD VMD. We firmly believe that HD VMD brings to the market the best prospect for making high definition content a reality for consumers in the short term at an affordable price."

The signing of the agreement with VCL adds to content distribution deals already in place in India and in China with leading regional distributors.

Commenting on the announcement, Mahesh Jayanarayan, CEO of NME, said: "The agreement with VCL is another landmark moment in NME's rapid expansion. We're looking forward to working with VCL to expand the number of HD VMD titles available in the German market over the coming months and we expect to announce further content distribution deals in Europe and North America in the near future."

About New Medium Enterprises

New Medium Enterprises (NME) provides a one-stop solution for the HD market, incorporating optical disc solutions, file formats, encryption technology, authoring tools and compression technologies.

NME is the first company to perfect a commercially viable 2P process that can contain multiple formats -- including both HD DVD and Blu Ray -- on one single disc. The breakthrough technological innovation provides a complementary path for other formats creating greater options and business opportunities for the ecosystem.

Dr. Eugene Levich and the engineers of NME have developed and have begun manufacturing its flagship product, VMD (Versatile Multilayer Disc). This is a proprietary high capacity multi-layer disc which provides the world's first low-cost true High Definition solution utilising today's red laser DVD technology and its industrial infrastructure. The VMD players are inherently backward compatible with DVD and CD.

This is the only low-cost high-end offering to the discerning consumer comparable to contemporary DVD market prices. New Medium Enterprises, Inc. is a Nevada Corporation and listed on the OTC exchange in the U.S. under the symbol NMEN.

For additional information about NME, please consult the Company's website at http://www.nmeinc.com.

The New Medium Enterprises, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2824

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