Video Ezy UpdateToday the Company is delighted to announce that...

Video Ezy Update
Today the Company is delighted to announce that it has successfully integrated a
second Digital Rights Management system for its Home Media Centre for Video
Ezy. This achievement represents the last technical milestone which Mobilesoft
had in relation to delivery for the Video Ezy electronic rental service.
The Verimatrix system is Video Ezy’s chosen content security system for the
rollout of its electronic rental service. The digital rights management software
encrypts the movie content and has the approval of all the major movie studios.
This digital rights management system also supports session based
watermarking so that the Mobilesoft Home Media Centre can be used for the
delivery of High Definition movies.
The integration of the Verimatrix system now allows the electronic rental service
to be extended. This distribution of additional Home Media Centre devices to
more homes will coincide with installation of further In Store Content Servers in a
number of Sydney suburban locations . The In Store Server allows each Video
Ezy store to deliver the electronic content into the customer’s hands and at home
it automatically transfers the content to the Home Media Centre in the lounge
room.
The initial order of 10,000 Home Media Centre set top boxes had been
scheduled for April/May of this year. Some early technical challenges and the
change of Digital Rights Management system software have seen this initial
order date slip.

This latest software integration will undergo a short period of trial and clears the
way for final technical acceptance and order. The new digital rights management
system met Video Ezy’s need for low cost and cardless security. Verimatrix
found it necessary to adapt its technology to meet the needs of Video Ezy’s novel
content delivery method.
Andrew Gardiner, General Manager Video Ezy said today “We are very excited
that the project build phase is nearing its conclusion and we are now able to
extend the trial beyond its technical trial to Video Ezy customers. This innovation
puts Video Ezy ahead of its competitors in the field of electronic media delivery.
We want to take delivery of this product at the end of the third quarter of this year
to enable a launch in to the market during the lead up to Xmas trading.
The successful acceptance of this latest delivery will enable us to place our order
during June for our September delivery.
Video Ezy has been working with specialist financiers and we expect to shortly
have a range of consumer finance options for our customers to acquire the Home
Media Centre”
The supply agreement with Video Ezy provides for delivery by Mobilesoft within
twelve weeks following the placement of each order.