'Step Into Liquid' A DVD Triumph; Over $12 Million in Sales and Rentals.

SAN DIEGO -- New Visual Corporation, (OTCBB:NVEI) a 50 percent owner of Top Secret Productions LLC, announces that since the release of the DVD for "Step Into Liquid" in April 2004, over $12 million have been spent by the North American public on purchases and rentals. The film's distributor has sold over 230,000 units to stores and DVD rental outlets in North America.

IMDB.com reported on July 11, 2004 DVD rental gross of $8.3 million, propelling the movie into the top ranks of rentals in the US. IMDB extrapolates the rental gross number from rental figures submitted by Blockbuster, Hollywood, and other major rental chains. Based on the run-rate of the rentals when imdb.com stopped reporting, rental revenues are likely to now be in excess of $9 million.

With the success of the DVD release, the North American gross revenues for Step Into Liquid are now estimated to be in excess of $17 million by New Visual's distributor. Foreign revenues are not included in this amount, and are not currently estimated by New Visual.

A two disc set, the feature-rich DVD offers something for surfer and non-surfer alike including a surfing glossary for the uninitiated, interviews with filmmakers and surfers, deleted scenes, a 3-D satellite flight through surf locations, virtual surfing lessons, the making of a surfboard, and a full-length video game. Step into Liquid is historically the first DVD to include a full-length video game. The video game retails independently of the DVD for a suggested retail price of $29.99.

DVD viewers can watch Step into Liquid in a widescreen format or the theatrical version playable on the PC in Windows, high-definition Media 9 with Dolby digital sound. The DVD retails on Amazon for $24.95. Surfdog Records has also released the sound track CD for a suggested retail price of $15.98.

"We are still early in the release schedule for the DVD; however, based on the theatrical success of Step Into Liquid and initial figures on the DVD, we expect ongoing revenue and longevity comparable to Endless Summer," Ray Willenberg, President of NV Entertainment commented. "The film will ultimately help build New Visual Corporation in the future by contributing a positive cash flow."

About Step Into Liquid

By using up-to-the-minute technology, sharp editing and awards-caliber cinematography to present extraordinary subjects in mind-boggling locations, "Step Into Liquid" embraces and celebrates the global surfing culture while managing to also deliver moments of real intimacy. The film takes viewers from the truly terrifying monstrous waves of Oahu's North Shore to the Texas waters of the Gulf of Mexico (where waves are created by massive oil supertankers) to the shores of Ireland and Rapa Nui. Along the way, viewers discover unforgettable human stories, from a man who's surfed every single day for the last 27 years to a young, inspirational surfer just getting back in the water in spite of a surfing accident that's left him paralyzed from the neck down. A true audience-pleaser, "Step Into Liquid" is at once profoundly moving and profoundly entertaining.

For more information about the film and the North American DVD release: www.stepintoliquid.com.

About New Visual Corporation

Based in San Diego, 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 includes forward-looking statements made under the "Safe Harbor" provisions 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.