New Visual Inks Distribution Deal with Artisan Entertainment; ``Step Into Liquid'' To Hit US Theaters This Summer.

Entertainment Editors/Business Editors

SAN DIEGO--(BUSINESS WIRE)--May 21, 2003

NV Entertainment, Inc., a wholly owned subsidiary of New Visual Corporation (OTCBB:NVEI) and Top Secret Productions, LLC are pleased to announce that Artisan Entertainment has acquired exclusive distribution rights in the US and Canada to "Step Into Liquid." The distribution agreement applies to all media, including theatrical, home video/DVD, and cable and broadcast television.

The deal comes on the heels of the film's successful screenings and glowing publicity in New York at the Tribeca Film Festival and precedes other planned festival screenings at the LA Film Festival and the Maui Film Festival, both in June. Highlights of the sale include a substantial print and advertising promotional commitment for the theatrical release, distribution fees, performance-driven minimum guarantees for both the theatrical and video/DVD releases, a modest cash advance and a 10 year license.

Adopting a platform release strategy, Artisan expects to open "Step Into Liquid" in New York City, Los Angeles and Newport Beach, California, and Hawaii on August 8, 2003 and widen to national audiences through the remainder of August and September. "With all of the great efforts put into this film working with Dana, Bruce, JP Beeghly, Scotty Waugh, and many others it is such a rewarding moment to now know that `Step Into Liquid' will be shared with national audiences on the big screen this summer," states Ray Willenberg, Jr. Chairman of New Visual and Executive Producer.

Steve Beeks, President, Artisan Home Entertainment stated, "`Step Into Liquid' is an outstanding film that really captures the essence of surfing from both a sporting and cultural perspective. Given the immense popularity of action sports around the world, we believe that audiences will embrace the high adrenaline action that drives the film from beginning to end."

Additionally, a Microsoft-encoded HiDef DVD is planned for the home video release. New Visual previously announced that Microsoft had licensed a trailer of "Step Into Liquid" for the launch of Microsoft's Windows Media 9(TM) Player.

"We are thrilled to be working with the Artisan team to make sure a film that we are so passionate about reaches audiences throughout the US and Canada. The recent non-fiction successes `Buena Vista Social Club' and `Standing in The Shadows of Motown' in both theatrical and home video releases, combined with their past fiction runaways, like `The Blair Witch Project', made Artisan a compelling home for `Step Into Liquid'," stated Rich Wilson, New Visual's Vice President and the film's associate producer. "Now that we have secured distribution for US theatrical, home video, and TV releases, we will turn our attention to foreign sales and other ancillary areas of value, such as sales of the soundtrack and merchandising opportunities."

To read Artisan's press announcement made by Steve Beeks, President, Artisan Home Entertainment and Steve Rothenberg, President, Artisan Entertainment, Domestic Theatrical Distribution, see: www.artisanent.com/Company/PressReleases/pr030520.html.

Artisan Entertainment Inc. is the leading independent producer and distributor of theatrical, television and home entertainment product. The Company coordinates its business activities through two wholly owned operating divisions, Artisan Pictures and Artisan Home Entertainment.

The Artisan Pictures division is responsible for the development, production, marketing and distribution of the Company's annual slate of theatrical films. The Artisan Home Entertainment division has an extensive library of over 7,000 titles which includes its own properties, as well as a wide spectrum of films from Academy Award(R) winning classics to blockbusters and cult favorites.

About "Step Into Liquid"

By using up-to-the-minute technology, sharp editing and awards-caliber cinematography to present extraordinary subjects in mind-boggling locations, "Step Into Liquid" embraces and celebrates the global surfing culture while managing to also deliver moments of real intimacy. The film takes viewers from the truly terrifying monstrous waves of Oahu's North Shore to the Texas waters of the Gulf of Mexico (where waves are created by massive oil supertankers) to the shores of Ireland and Rapa Nui. Along the way, viewers discover unforgettable human stories, from a man who's surfed every single day for the last 27 years to a young, inspirational surfer just getting back in the water in spite of a surfing accident that's left him paralyzed from the neck down. A true audience-pleaser, "Step Into Liquid" is at once profoundly moving and profoundly entertaining. "Step Into Liquid" is produced by Top Secret Productions LLC, a 50%-owned subsidiary of New Visual. For more information and release dates and venues, see: www.steptintoliquid.com, or www.artisanent.com.

About New Visual Corporation

Based in San Diego, New Visual is a late-development-stage fabless communications semiconductor company. It is developing an advanced technology that allows data to be transmitted at greater speed and across extended distances over existing copper wire. For more information, visit www.newvisual.com.

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: matters relating to the theatrical, home video and television release of "Step Into Liquid," foreign distribution of the film, and ancillary opportunities for the film, market demand; the impact of changing economic conditions; business conditions in the entertainment industry; reliance on third parties, including potential suppliers, licensors, and licensees; the impact of competitors and other factors detailed in this press release and in the company's Securities and Exchange Commission filings.