LONDON, February 28 /PRNewswire/ -- New Medium Enterprises, Inc.(NME) (OTC Bulletin Board: NMEN - News) reacts to the withdrawal of Toshiba's HD-DVD format from the market last week, effectively leaving two successors to DVD: Blu-ray and VMD.

Both formats offer the capacity required for High Definition film on a six inch optical disc; both formats have a pipeline of players and content hitting the market; however only one can be produced by the world's current manufacturing base at a consumer-sustainable price, and that is VMD as it is DVD based.

The blue laser format has struggled to gain a market foothold and very few manufacturers have acquired the equipment needed to produce 'blue' players and discs. With a market lifespan being shortened by satellite, cable and download, the significant investment required to produce them makes economic viability difficult for manufacturers, particularly in less affluent markets where the high street price will always have to be much lower.

In contrast, as NME's multilayer format is based on existing red laser DVD production technologies, it requires no such significant investment by OEMs, disc replicators and authoring houses. With production costs close to DVD, VMD is now coming to market and to provide a commercially viable High Definition product range for manufacturers and of course, their customers.

"The way is now clear for VMD to be embraced by the industry, our technology is robust and our format is clearly equal to the quality required to deliver a true HD experience for the consumer at a price they are prepared to afford" Said Interim CEO Geoff Russell.

Critically, a movie recorded on VMD (Versatile Multilayer Disc) will display a full High Definition format 1080p, namely a picture consisting of 1080 lines and 1920 pixels on each line. The VMD technology owners NME, Inc. have also created the necessary authoring and firmware tools to read VMD discs and yet still play DVDs and CDs.

With commentators starting to pick over the remains of HD-DVD, it is clear that Toshiba's strategy had been to target a wider market with lower pricing, but failed due to technical difficulties, delays and significant losses even on modest sales.

"NME, Inc. have developed the VMD technology independently and are poised to come to market in several territories in the next quarter. All indications are that VMD can fill the void left by HD-DVD for a hungry production industry and rapidly growing HD-screen enabled consumer market," says Michael Solomon, Chairman of NME, Inc.

About NME

New Medium Enterprises, Inc. is listed on the OTC BB exchange in the U.S. under the symbol NMEN. NME's HD VMD drives offer the world's first affordable format in true High Definition based on current red laser technology and the existing DVD industrial infrastructure. Incorporating break-through optical storage capacity, red laser-based players, the HD VMD file format, copyright encryption, authoring tools and compression technologies, NME is providing the only high-quality and high-value offering for the consumer electronics market. For additional information about NME, please visit: http://www.nmeinc.com

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The 'Press Release' contains forward-looking statements as defined by the federal securities laws which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may discuss our future expectations, contain projections of our future results of operations or of our financial position, or state other forward-looking information. However, there may be events in the future that we are not able to accurately predict or control. Forward-looking statements are only predictions that relate to future events or our future performance and are subject to substantial known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results, outcomes, levels of activity, performance, developments, or achievements to be materially different from any future results, outcomes, levels of activity, performance, developments, or achievements expressed, anticipated, or implied by these forward-looking statements. As a result, we cannot guarantee future results, outcomes, levels of activity, performance, developments, or achievements, and there can be no assurance that our expectations, intentions, anticipations, beliefs, or projections will result or be achieved or accomplished. In summary, you should not place undue reliance on any forward-looking statements.

For further information please contact: NME, Inc. Siok Chua VMD House 195 The Vale London, UK W3 7QS Tel: +44(0)208-749-9955 Email: siok@nmeinc.com

For further information please contact: NME, Inc., Siok Chua, VMD House, 195 The Vale, London, UK W3 7QS, Tel: +44(0)208-749-9955, Email: siok@nmeinc.com