Front Porch Digital Announces New Additions to Management, Strategy & Business Partners.

Business Editors

CHERRY HILL, N.J.--(BUSINESS WIRE)--Nov. 8, 2000

Front Porch Digital Inc. (OTC BB:FPDI) today announced four new executive appointments, its near term strategy, and planned business partners.

The Company is seeking to position itself as an industry leader in the emerging market for the conversion and formatting of text, images, audio, graphics and video, from any format to any other format, for access via any digital platform, including broadband Internet, DVD and HDTV. The Company also plans to capitalize on its first mover status as the leading provider of offline data conversion services to Fortune 1000 companies that need to migrate tape and optical assets from legacy formats to state-of-the-art data storage technology.

FPDI will hold a Webcast today at 1 PM EST to explain these developments. Go to www.vcall.com and click FPDI under "Today's Vcalls" or go directly to http://www.vcall.com/NASApp/VCall/EventPage?ID=52080. Investors should go to www.vcall.com at least fifteen minutes before the event to register and download and install any necessary audio software. For those unable to attend the live broadcast, a replay will be available for 24 hours via phone by dialing 800-633-8284 (use reservation number 16841898). A replay also will be available for 90 days at www.vcall.com. There is no charge to access the live event or the replay.

'A Tremendous Opportunity'

The Company named Saeed Karim as President and Chief Operating Officer, Dr. Giancarlo Gaggero as Senior Vice President Media Technologies, Ken Beaudry as Senior Vice President Sales & Services, and Ed Ladd as Chief Engineer. They join Jean Reiczyk, recently named as Chairman and Chief Executive Officer; Tim Petry as Chief Financial Officer; Dr. Jay Yogeshwar as Chief Technology Officer; and Melanie Fendt as Chief Administrative Officer.

"We believe we now have a truly `world class' management, technology and marketing team to maximize Front Porch Digital shareholder value," Mr. Reiczyk explained. "About 85 percent of the data in the world today is analog in the form of paper, film, microfiche, or analog tape. This creates a tremendous opportunity for converting, indexing, managing and making analog data available to the digitized world of networks and Internet B2B applications."

"With the new management team in place, we are merging the original Front Porch Digital operations and the Media Services operations we acquired October 11th from Storage Technology Corp (NYSE: STK)," Mr. Reiczyk explained. "Front Porch Digital is developing proprietary technology that can convert in a single capture analog video to any kind of format in the digital video space, such as MPEG2, MPEG4 or Real. With the arrival of Advanced Digital TV, including HDTV, broadcasters have a tremendous amount of legacy analog video to be digitized. On the other hand, the Media Services operations has more than 10 years of experience in performing analog conversion from text, document, microfiche and image to digitized data on tape and disk."

"By combining these two entities, we believe we have a unique suite of software, products and services that enable us to convert from 'anything' to `anything'. We now have the ability to digitize paper documents, microfiches, microfilms, and analog video, as well as to migrate digital data from legacy optical storage systems (from companies such as FileNet, FileTek and Kodak) or legacy magnetic tapes, to new digital storage media. We are able to digitize and index this data, and make it available to our clients and their providers, suppliers and customers. That is the mission of the new Front Porch Digital."

"Our target customers are Fortune 1000 companies and government agencies," Mr. Reiczyk said. "Many large banks and insurance companies still have all their legacy data stored on old-technology optical disks, which are very expensive to maintain and rapidly becoming obsolete because there were no industry standards for that technology. These companies are required by law to keep this data for years. The Federal Government is another large potential customer that has literally tons of paper and optical disks that have to be converted. We believe we have the intellectual property, the technology and the expertise to convert this data to new digital media with minimal human intervention."

"We are now in the process of negotiating a series of agreements with a wide range of systems integrators, hardware manufacturers, and entertainment, media, distribution, storage and software companies to market and distribute our technology and services both domestically and abroad," said Mr. Reiczyk. "We expect to begin announcing these relationships later this month. Our objective is to rapidly build our revenues on a low cost basis while we develop Front Porch Digital into an industry leader. We expect to maintain a controlled cost rate in the months ahead, while increasing revenues and profitability. Understanding the need to make Front Porch Digital a more appealing investment, we are contemplating a move to the NASDAQ market as soon as possible."

This news release contains forward-looking statements that involve risks and uncertainties. The Company's actual results may differ materially from the results discussed in these forward-looking statements. Factors that might cause such differences include, among others, availability, terms and deployment of capital; general economic and business conditions; industry trends; changes in demand for the Company's products; the timing of orders received from customers; announcements or changes in pricing policies by the Company or its competitors and availability of management.