New Visual Developing Cu@OCx Transmission Technology.

Business Editors & High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--June 19, 2001

New Last-Mile Technology First to Use Existing Copper

Infrastructure to Provide Speed and Range Similar to Fiber Optics 

New Visual Entertainment Inc. (OTCBB:NVEI) Tuesday announced that its wholly-owned subsidiary, New Wheel Technology, has shifted its focus from research to product development of its proprietary transmission technology.

Cu@OCx (pronounced "copper at OCX") is the first technology to use the ubiquitous installed-base of copper wire throughout the world to transmit data at speeds equal to or better than VDSL or fiber optics. This technology has the potential to solve the last mile dilemma by delivering broadband services to business and residential customers that are beyond the range of current copper-based technologies.

Cu@OCx uses a patent-pending multi-channel modulation technique that the company has named Group Frequency Modulation (GFM). The technique addresses the problems that have typically limited effective bandwidth and distance capability of other high-speed transmission technologies, such as Discrete Multitone (DMT) or Single Carrier Modulation (SCM). GFM combines transmission characteristics of telephone cable with technology advancements from a number of fields including signal processing and information theory. The result is a more robustly transmitted signal and a unique method for recovering data from received signals that are severely attenuated.

In February of 2001, an independent global networking services organization verified Cu@OCx's ability to transmit and receive raw data at a rate of 52 Mbps over 9,000 feet using a single pair of 26 gauge telephone wire -- a 900% distance improvement over competing technologies in the residential marketplace, such as VDSL, and an alternative to expensive fiber optic cabling for businesses.

Cu@OCx will serve multiple business class markets, including small and medium sized enterprise, wide and metro area networking, and multi-tenant unit sectors that are now being served by local exchange carriers, regional Bell operating companies and Internet service providers. After initial production of Cu@OCx equipment for field trials and sales, this layer one technology will be incorporated into new products that allow equipment and chip makers to create new sources of revenue and service providers to reliably and cost-effectively offer voice, video and data content, using the existing telephone network.

"The desire to easily, affordably and quickly access voice, data and video has increased as applications for media rich content, such as video-on-demand, have become more widely available," explained Ray Willenberg Jr., president and CEO of New Visual. "While wireless and Ethernet in the first mile will no doubt find some level of success, we believe Cu@OCx holds enormous competitive advantages -- economical production of equipment and chipsets and the ability to use the existing copper infrastructure -- avoiding the time consuming and expensive delays of building a new infrastructure or deploying massive changes to the existing infrastructure."

About New Visual

New Visual is pioneering the development of a proprietary broadband transmission technology with the mission to utilize existing copper telecommunications infrastructure to deliver data and content to the office or home at fiber optic transfer rates. Through its New Wheel Technology Inc. subsidiary, New Visual is developing technology which will allow the bundling of voice, video, and data over existing copper telephone wires, potentially eliminating the need for fiber optic cable to the home or office. New Visual's common stock is traded on the Over-The-Counter Bulletin Board under the symbol NVEI.

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.