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[November 09, 2004]

NS8 Helps Movie Industry Combat Piracy with Secure On-Demand Entertainment Solutions

SEATTLE --(Business Wire)-- Nov. 9, 2004 -- NS8 Corporation (OTCBB:NSEO): Cinema Distribution Solution Protects, Manages, and Distributes Feature-Length Movies

NS8 Corporation, a leading provider of on-demand content security and distribution management solutions for the Internet Protocol Television (IPTV) and IP On-Demand industry, today announced NS8 Library Distribution Management System (LDMS) that uses advanced protection and distribution technology to enable movie studios to efficiently and securely deliver feature-length movies to theaters overnight. NS8 Security Protocol Integration(TM) technology gives movie owners the power to securely distribute movies using conventional broadband networks. These technologies provide significant economic advantage to motion picture producers and theater operators.


Movie piracy is quickly becoming one of the top economic issues for movie studios. This week, the Motion Picture Association of America warned against a growing global epidemic, citing a survey of Internet users in which nearly one in four respondents had illegally downloaded a movie online. The increasing ease of downloading movies, through broadband and compression technologies and the wide availability of films online were cited as factors driving consumers to download.

To combat this growing and costly - $3 billion a year - epidemic, movie studios and content distributors are turning to NS8's cinema distribution solution to enforce the length of release per specific theater, monitor and report in real-time the audience seating per screen and enforce digital rights throughout the movie viewing lifecycle. Movie distributors are now empowered to distribute worldwide without duplicating expensive and vulnerable 35mm film stock or risking piracy while also reducing insurance costs. The NS8 technologies enable theater operators to earn more revenue during the limited time allotted them for each movie run.

"Studios can avoid costly litigation and prosecution of piracy rings by using a secure, integrated system for managing movie releases," said Anthony J. Alda, Co-Founder and Chief Executive Officer. "Protecting content from piracy and managing sophisticated distribution requirements streamlines ownership and distribution costs by eliminating many of the inefficiencies that occur in today's complex movie distribution system. This is the first real step to secured end-to-end digital movie distribution and management from content owner to the entertainment venue operator."

By using NS8 content distribution servers and creating robust distribution policies according to theatrical distribution agreements, full-length movies are protected from the content source and delivered overnight to theaters housing the NS8 cinema distribution platform. Movies studios and distributors can render the content unusable within the specified policies of the distribution license agreements, eliminating the need to recall the film once the release window has expired.

NS8 also plans to offer an advertising management system that seamlessly integrates pre-delivered digital advertising to the theater thereby providing new channels for advertisers and increased revenue opportunity to theater operators.

About NS8 Corporation

NS8 Corporation (www.ns8corp.net) is a Delaware registered corporation specializing in the development of leading edge smart-encryption and server-based software technologies applied to content on-demand over IP-based networks including Internet Protocol Television (IPTV).

NS8 Corporation offers a digital content Library Distribution Management System(TM) (NS8-LDMS(TM)), Security Protocol Integration(TM) (NS8-SPI(TM)), a digital security management application, and the NS8 Consumer Program and Shopping Guide(TM) (NS8-CPG(TM)) as part of its IPTV and On-Demand Digital Distribution Network (NS8-DDN(TM)) solution for owners of digital movies, television programming, retail merchandising and advertising content. These products and solutions enable content owners to more efficiently and cost-effectively protect and manage the distribution of their digital libraries, retail merchandise and advertising placements within IP-based networks for telecommunication and direct broadcast satellite environments.

Safe Harbor Statement

Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company's beliefs and the assumptions it made using information currently available to it. Because these statements reflect the Company's current views concerning future events, these statements involve risks, uncertainties and assumptions. The actual results could differ materially from the results discussed in the forward-looking statements. In any event, undue reliance should not be placed on any forward-looking statements, which apply only as of the date of this press release.

Trademarks

Consumer Program and Shopping Guide, CPG, Library Distribution Management System, LDMS, NS8, Secure Digital Content Distribution, Security Protocol Integration, and SPI are either registered trademarks or trademarks of NS8 Corporation. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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