Following the attainment of the milestone, the Company signed an amendment to its development agreement with HelloSoft Inc. of San Jose, Calif., that defines and prices the next two phases of the technology development. The Company will expend $445,000 on Phase II and $350,000 on Phase III. Half of Phase II, or $222,500, was paid to HelloSoft on July 26, 2004, in the form of restricted common stock, and the other $222,500 will be paid to them in cash when they complete Phase II. When HelloSoft commences Phase III, the Company will issue to them $175,000 worth of restricted common stock, and the other $175,000 will be paid to them in cash when they complete Phase III. Phase III will be deemed complete when HelloSoft releases the completed product in its beta form to the Company. The Company projects that this will occur in the fourth quarter of 2005.
In July 2005 the Company declared that Phase I of the development process was complete and commenced Phase II. In accordance with its development agreement with HelloSoft, the Company paid them $92,500 in cash. This payment is in addition to $92,500 of restricted common stock that was issued when they began their work on Phase I.
"Based on our experience in telecom chipsets, we feel that this project is well within our ability to deliver on-time and on-budget," stated Ron Victor, General Manager of HelloSoft. HelloSoft, which currently employs 130 people, has recently dedicated a team of experienced digital signal processing hardware, software and management engineers both in San Jose, Calif., and in its development center in Hyderabad, India to the commercialization of Embarq(TM).
The most significant advantage of the Embarq(TM) technology is the ability to reach farther and faster on a single pair of unshielded twisted pair copper with a higher data throughput than the announced VDSL, VDSL2, ADSL, ADSL2 and ADSL2+ products from New Visual's competitors. Embarq(TM) is designed to deliver one hundred megabits per second of data across a single pair of the type of copper wire that telephone companies use to reach their residential and small business customers.
"HelloSoft and New Visual have just completed our first major, shared milestone," stated Brad Ketch, president and chief executive officer of New Visual Corporation. "I believe that this partnership will result in the release of a product on-time and on-budget that will improve the delivery of broadband multimedia into the homes and small businesses of the world."
About New Visual Corporation
Based in Portland, New Visual is a late-development-stage fabless communications semiconductor company. It is developing an advanced technology that allows data to be transmitted at greater speed and across extended distances over existing copper wire. For more information, visit www.newvisual.com.
With the exception of historical information contained in this press release, this press release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, including but not limited to the following: product development difficulties; market demand and acceptance of products; the impact of changing economic conditions; business conditions in the Internet and telecommunications industries; reliance on third parties, including potential suppliers, licensors and licensees; the impact of competitors and their products; risks concerning future technology; and other factors detailed in this press release and in the company's Securities and Exchange Commission filings. New Visual is under no obligation to revise or update any forward looking statement in order to reflect events or circumstances that may arise in the future.
Contact:
New Visual Corporation Brad Ketch, 503-257-6700 Email Contact