Media Analyst Paul Kagan Announces Launch of PK Worldmedia; Research/Consulting Company Will Track Growth and Value of Digital Media & Communications.

CARMEL, Calif. -- Media analyst Paul Kagan announced today the launch of PK Worldmedia, Inc., to provide information, research and consulting services to operating executives, financiers and investors in digital entertainment and communications media technologies and services.

With its first products -- the weekly PK REPORT, consulting and valuation services -- PKWM will focus on the growth potential of increasingly competitive media industries, leveraging Paul Kagan's analytical skills, research and investing experience to interpret fast-moving events, predict the direction of changing trends and value public and private enterprises.

Kagan's original companies -- led by Paul Kagan Associates, Inc. -- maintained offices in Carmel, CA, Denver, London and Hong Kong. They published 38 newsletters, 95 databooks, conducted a dozen high-level conferences annually, valued hundreds of billions of dollars worth of companies, provided expert witness testimony and consulted for leading companies and government agencies. The group was sold to Primedia in 2000, and in 2004 from Primedia to MCG Capital, which renamed it Kagan Research LLC. Since 2001, Paul Kagan has continued to invest in media, has consulted on valuation assignments and has contributed twice-monthly columns to Cable World magazine. The consulting contract from his sale to Primedia in 2000 expired on Nov. 9, 2005.

"In the past five years," Kagan says, "the media landscape has somewhat changed, but perceptions of its future are radically different.

"New competitors and technologies have generated fear and excitement about old and new business models, thanks to advances in digital video recording (DVR), voice-over-internet-protocol (VOIP), wireless networks, higher speeds of internet access (cable modem, DSL, power lines, wireless), video-on-demand (VOD), interactive TV (ITV), internet media, streaming video downloads to computers, home networking, media centers, satellite TV and radio, podcasting, console and networked videogaming, 3-D movies/TV, and multiple platforms of portable media (MP3, mini-DVD, PDA, cellphone)."

According to Paul Kagan, "the needs of advertisers and technology developers, consumer electronics manufacturers, content owners, operators of delivery systems, consumers, financiers, investors and government regulators are all in a new state of agitation. But even as solutions take shape, the timing of competitive rollouts, capital requirements and asset valuations remain elusive elements in the media picture.

"In this atmosphere," Kagan says, "PK Worldmedia has a unique ability to overlay the lessons of history on projections of the future. Despite the rapid escalation of media sources, consumer demand remains greater than the supply. It is that salient truth that feeds the growth of new media technology and program concepts."

PKWM's website is in development. Paul Kagan's first website, launched in 1995, was the first to offer pay-per-view information. His Internet Media Investor newsletter in 1996 was the first publication to recognize the role of internet search engines as media companies. Earlier breakthroughs from Paul Kagan included the first analyses of public stocks using cash flow metrics, later known as EBITDA, and computations of the private value of public media companies. The studies revealed the inherent value of businesses, which frequently surface in acquisitions as a private premium over a company's public trading price. Kagan also published the first newsletters on cable TV investment, pay TV programming, TV-radio finance and investment, broadband technology, cellular telephone, interactive TV and valuation of European, Latin American and Asian cable, satellite and pay TV. He also co-founded and solely financed the startup of Cable World magazine, created Euromedia, the first pan-European media business magazine and published Asia Cable & Satellite World and Asia Broadband magazines.

More information about Paul Kagan's new venture can be obtained by emailing [e-mail]. PKWM's offices are at 126 Clock Tower Place, Suite 200, Carmel, CA 93923. Telephone [phone]. Fax [phone].