ConfirMedia Broadcast Monitoring Service Validated by JASRAC and RIAJ in Japanese Market Trials.

Entertainment Editors/Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--April 8, 2003

Verance Corp., the leading provider of content use management and media information services, today announced the successful conclusion of market tests of its ConfirMedia broadcast monitoring service in Japan by the Japanese Society for Rights of Authors, Composers, and Publishers (JASRAC) and the Recording Industry Association of Japan (RIAJ).

The tests were conducted to establish the ConfirMedia system's effectiveness for providing complete and accurate information on the broadcast usage of copyrighted musical works in radio broadcasts throughout Japan. The tests were coordinated by ConfirMedia Inc., a joint venture between Verance, Video Research Inc. and Constellation Ventures that was formed in May 2002 to provide the ConfirMedia service to broadcasters, advertisers and copyright owners and administrators in Japan.

The two-week market trial, which was conducted with the cooperation of the Japanese government as well as the National Association of Commercial Broadcasters in Japan (NAB), was held in Tokyo and Osaka during the summer of 2002. Music recordings provided by RIAJ were embedded with unique identification codes using Verance's proprietary digital audio watermark technology and distributed to various commercial broadcasters. Broadcast monitoring systems provided by Verance were deployed and operated by ConfirMedia Inc. to automatically identify every use of the watermarked content by broadcasters during the trial. Daily electronic reports showing the usage of the watermarked content were then provided to JASRAC and RIAJ for analysis.

Following the conclusion of the trial and the analysis of the detection data provided by the ConfirMedia system, JASRAC and RIAJ issued a joint statement to announce that the ConfirMedia technology fully meets their commercial requirements as a broadcast monitoring information service.

"JASRAC and RIAJ have been cooperating in the evaluation of watermark technologies since late 2001, when we together developed the Audio-watermarking Technology Investigation Consortium (ATIC)," said Junichi (John) Tanaka, technology center director of the RIAJ. "Establishing the commercial viability of new technologies for copyright management is a critical aspect of our organizations' missions. These tests have shown ConfirMedia to be an effective tool for addressing some of our central copyright management challenges and we look forward to seeing the service move forward to commercial availability."

According to Hitoshi Miyazaki, CEO of ConfirMedia Inc., "The results of this field trial with JASRAC and RIAJ provide important validation to our efforts to bring the ConfirMedia broadcast information service to the Japanese marketplace. We look forward to initiating the service on a nationwide basis later this year and facilitating dramatic improvements in the accuracy and efficiency with which participants in the broadcast and copyright industries manage their businesses."

"This achievement represents a groundbreaking step in making the ConfirMedia system a worldwide information service," said Bob Cerasoli, president and COO of Verance. "We remain dedicated to supporting the rapid development and growth of ConfirMedia Inc."

Verance currently operates the ConfirMedia service in the United States, where monitoring information is collected from over 2,000 radio, television, satellite and cable broadcasters in 100 markets nationwide.

ConfirMedia Inc. recently secured $2 million in financing from current investors Video Research Inc., Verance, Constellation Ventures and new joint venture partners, Toshiba and Video Research Comhouse Ltd. The funds will be used for the nationwide commercial deployment of the ConfirMedia broadcast information service in Japan.

About Verance:

Based in San Diego, Verance provides patented audio watermarking technology solutions for broadcast monitoring and airplay verification, as well as for audio and audio-visual content use management and copy protection. ConfirMedia broadcast verification customers include major advertisers, advertising agencies and entertainment companies. Verance content use management licensees include major worldwide recording companies, consumer electronics companies and information technology industry leaders. Additional information about Verance and ConfirMedia can be found at www.verance.com or www.confirmedia.com.