NME Denies Rumors

It has come to the attention of the NME that
stories have been emerging on the Internet and in the press that EU officials
have confiscated moneys from Sony and Microsoft and which have subsequently
been provided to NME to promote fair competition in the High Definition
optical disc market.

This coverage further goes on to state that "representatives from both
Sony and Microsoft denied any payoffs to each other, but it’s been rumored
that the money was confiscated by EU officials who wanted to promote fair
competition by subsidizing NME, makers of the HD-VMD format."

In response to this recent press coverage NME would like to stress that
it is not aware of, or party to any such activities by Sony, Microsoft or any
actions by the authorities within the European Union in this regard.

Geoff Russell, NME’s Acting CEO stated today, "We cannot be sure where
these rumors started or why, only to say that we have had no contact with EU
Authorities in this respect. However, the NME management team cannot deny
that we have watched the blue laser debate with interest and that Toshiba’s
withdrawal changes nothing for the majority of disc replicators and DVD based
OEMs in the world, since the capital cost and risk of migrating to blue laser
technologies in a market that has a finite life is nonsensical."

New Medium Enterprises Inc.