Desert Winds Entertainment Corporation Acquires SunnComm, Inc.; Assets Include Proprietary Software That Copy-Protects Digital Media.Business/Technology Editors PHOENIX, Ariz.--(BUSINESS WIRE)--July 17, 2000 Desert Winds Entertainment Corporation (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: DESW) announced today the acquisition of 100% of SunnComm, Inc. - a Nevada corporation A Nevada Corporation is a corporation chartered under the laws of the U.S. state of Nevada. Nevada, like the state of Delaware (See Delaware corporation), is well known as a corporate haven. which is the owner of multiple patents (pending) to a proprietary technology which allows the music industry to copy-protect its digital audio products. Desert Winds agreed to purchase SunnComm, Inc. along with its technology for 7 million shares of SunnComm convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". under undisclosed terms. The technology was developed jointly between SunnComm and two other Phoenix-based companies. Also, in a majority vote of stockholders, Desert Winds Entertainment Corporation has changed its name to SunnComm, Inc. Accordingly its stock symbol has changed from DESW to SUNX and its business strategy has shifted from entertainment content "provider" to one of content "protector." SUNX continues to trade over the counter (OTC). Peter H. Jacobs will remain as the company's president and chief executive officer. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Mr. Jacobs, "We think we've found the missing link in the fight to keep digital music and video piracy piracy, robbery committed or attempted on the high seas. It is distinguished from privateering in that the pirate holds no commission from and receives the protection of no nation but usually attacks vessels of all nations. from running rampant throughout the world, and provide a permanent solution to court battles currently being fought in this arena such as those between recording artists, Napster, MP3, and the RIAA (Recording Industry Association of America, Washington, DC, www.riaa.com) A membership association of music recording companies. Its goal is to promote the record label industry and protect the rights of copyright owners. It was a major contributor to the SDMI digital distribution system. . Artists, record companies, producers and publishers alike are in dire need for a reliable copy-protection process designed to curtail cur·tail tr.v. cur·tailed, cur·tail·ing, cur·tails To cut short or reduce. See Synonyms at shorten. [Middle English curtailen, to restrict unauthorized (and unpaid-for) duplication of their intellectual property over the Internet and on commercially available compact discs and custom CDs created by the consumer." Jacobs continued "This encrypted en·crypt tr.v. en·crypt·ed, en·crypt·ing, en·crypts 1. To put into code or cipher. 2. Computer Science technology allows record companies to distribute their digital content over the Internet in a completely secure manner, while allowing the consumer the ability to write that content to any computer-based CD writer at 16-bit, 44.1K (the music industry standard) without any loss of sound quality or the necessity to purchase any additional hardware or software. Once the music is "burned" onto a CD, additional security measures Noun 1. security measures - measures taken as a precaution against theft or espionage or sabotage etc.; "military security has been stepped up since the recent uprising" security have been designed to prevent the user from copying the data from one CD to another, or to any other form of writeable storage medium." John Aquilino, Executive Vice President and head of product development for SunnComm says, "Our process, the SunnComm Sentinel(R), allows record companies to copy-protect their products without sacrificing sound quality. A major advantage to our process is that the Sentinel is not `format specific.' Manufacturers are free to utilize any current digital format available that they may deem appropriate for the distribution of their product. The SunnComm Sentinel process can be combined with any digital input. When played, the output is identical and transparent to the end-user. Once secured with our process, the discs can be played on any consumer car or home audio system, as well as on personal computers. The only difference is that the disc or digital stream cannot be digitally copied." The company has also announced that it will unveil its working demonstration model of the SunnComm Sentinel within 30 days, and has begun plans to involve artists and publishers in the effort to "get the word out" that there now exists a way to protect their products, whether that property is recorded on CD or is made available to them on the Internet. SunnComm plans also include the involvement of selected recording companies in the SunnComm Sentinel licensing process as soon as possible. The SunnComm acquisition by Desert Winds Entertainment marks the Company's transition from an entertainment "content provider" toward a more relevant and timely role as a "content protector." Further evidence of this change in strategy has been reflected in the company's name change from Desert Winds Entertainment Corp. to SunnComm, Inc. SunnComm, Inc. (OTC: SUNX) protects digital content product by copy-protecting it whether that product is found on compact discs or the Internet. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The statements contained herein which are not historical are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. |
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