Pervasys Announces Imminent Digital Output Rights Acquisition and Streaming Video Advertising Model

Los Angeles, California, UNITED STATES

LOS ANGELES, July 23, 2001 (PRIMEZONE) -- Pervasys, Inc. (Pink Sheets:PVYS) has executed a Letter of Intent to acquire digital distribution rights to the production output of David Woodrow over the next 5 years. Woodrow will also bring his existing talent management and production facilities to Pervasys as Value Added Resellers (VAR's) for Pervasys streaming video technologies. Woodrow noted, "I've seen the technology over the last few years, and it seems that the extension of broadband and wireless technologies gives Internet broadcast video a greater chance to achieve market share and profitability."

Pervasys Corporate Secretary and Director, Lawrence Lotman, has been developing the revenue models to commercialize digital properties acquired by the company. "We are planning to exploit both advertising time in the stream, as well as 160 x 120 pixel plots of Web real estate. With our upcoming Miss Black USA event, we are selling 15 minutes of commercial streaming video audio time. The spots will repeat twice an hour for 30 days on the Website, as well as twice during the 3-hour Webcast this Sunday, July 29. Fifteen-second and 30-second spots are available, and are combined with editorial and logo signage on the site for maximum sponsor exposure. Streaming advertising clients will also have the opportunity to place slick-through ads in 8 of the 12 "160 x 120" pixel plots that surround the live "320 x 240" pixel picture. We believe that this package will prove to be far more effective for client recognition and exposure and reaction than traditional banner ads, with a major impact on how advertising is conducted on the Internet."

Pervasys Chairman noted the opportunity to expand their marketing presence by stating, "I look forward to the opportunity to develop marketing plans that will suit his clientele, while offering Pervasys more opportunities to find innovative ways to implement its technologies in creative environments. Mr. Woodrow's film business activities center around Los Angeles, but he also manages active operations in San Diego, Santa Barbara, Las Vegas, Phoenix, and Chicago. With the acquisition of these digital rights and our relationship with David, we more than double the number of people who will be marketing Pervasys technology solutions. We feel that Mr. Woodrow's sales staff is uniquely poised to appreciate the multimedia aspects of our Convergence Studio multimedia and entertainment marketing plans."

Productions already contemplated include L.A. Nightlife with James Bartholet; "Oak Valley", a contemporary sitcom with Oak Productions; the Miss Black U.S.A. Pageant, and the upcoming 2001 Model Expo.

Since 1983 when he started working as a talent manager, casting director and producer, Woodrow's production, promotion, management clients and activities have included productions such as Star Search, Baywatch, Good Morning America, P.M. New York, Inside Edition, Current Affair, Hard Copy, MTV, ESPN's Body Shaping, the Bikini Open, Home Shopping Network, and various other projects with Warner Brothers, Columbia, NBC, CBS, ABC, Fox, and HBO, as well as entertainment-oriented entities such as Planet Hollywood, magazines and publications such as People, Cosmopolitan, Vogue, Glamour, Elite, Seventeen, Peterson Publishing, Muscle & Fitness, Sport Magazine, Inside Sports, New Body Magazine, Swimwear U.S.A., American Woman, Shape, Strong & Shapely, Bikini Illustrated, Pageantry Magazine, Nightclub & Bar Magazine, L.A. Weekly, and Top Shelf Magazine. Woodrow has also produced calendars with Sevylor, Budweiser, Molson's, and Landmark, catalogs with Bum Sportswear, Hawaiian Tropic, Venus Swimwear, and Snap On Tools, and worked with major corporate clients such as Vogue, Revlon, Max Factor, AT&T, General Motors, Ford, Coca Cola, Pepsi, Hilton Hotels, and Labatt's.

Further information on Pervasys products can be obtained on, or by contacting:

Michael Meyer (US) (323) 571-3717, (818) 365-1957, Brian Sammartino (Canada), (604) 732-1291. Chan Son Jeon (Korea), 02-698-1279

For Financial Relations, contact Glen Chazak, DeBenn Capital, (310) 285-4602

Statements included within this press release that are not historical in nature constitute forward-looking statements for the purpose of the safe harbour provided by the Private Securities Litigation Reform Act of 1995. Investors are cautioned that this press release contains certain such forward-looking statements that involve substantial risks and uncertainties. When used, the words "anticipate," "believe," "estimate," "expect," and similar expressions as they relate to the Company or its management are intended to identify such forward-looking statements. There can be no assurance that the Company will be able to market, sell or deliver successfully its services inside or outside the United States, given risk factors including but not limited to unexpected changes in regulatory requirements, export restrictions, tariffs and other trade barriers, challenges in staffing and managing foreign operations, differing technology standards, employment laws and practices in foreign countries, longer payment cycles, problems in collecting accounts receivable, political instability, fluctuations in currency exchange rates, imposition of currency exchange controls, seasonal restrictions in business activity and potentially adverse tax consequences, any of which could adversely affect the Company's international operations. There can be no assurance that one or more of these factors will not have a material adverse affect on the Company's current or future international operations and consequently, on the Company's business, results of operations, and financial condition.


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