True Click and Mortar: Freeflyr Automation to Unveil DVDPlay at VSDA Convention in Las Vegas, July 8-10.

Business Editors

NEWBURY PARK, Calif.--(BUSINESS WIRE)--June 27, 2000

Freeflyr Automation today announced that it will unveil the DVDPlay, fully automated, Web-connected video stores, at the VSDA convention in Las Vegas, July 8-10.

The DVDPlay consists of a central network hub that interacts with the www.dvdplay.net Web site in the virtual world, and with well- positioned automated interactive kiosks in the physical world. The incredible efficiency of the system means that it can operate at greater than 15 times the profit margins of traditional video stores with a minimal investment.

"We are taking advantage of the best features of e-commerce and brick-and-mortar retailing," said Bill Barber, president of Freeflyr Automation. "Most e-commerce companies need to physically interact with their customers, and most physical retailers beg for the efficiency that the Web should offer. We have married the concepts together in the most efficient, synergistic manner possible -- fully automated at the Web and fully automated at the low-cost physical stores.

"The DVDPlay system was designed to bring the term `profit margin' back into the video rental and sales market by providing an efficient alternative for expanding distribution within geographic territories. Minimal floor space and labor requirements allow for business expansion without the excessive capital investment," explained Barber.

"Systems can be placed in high-traffic locations to capture new business opportunities as stand-alones or as satellites to existing business. An optional integrated plasma display screen also provides a means to attract attention to new movies and additional revenue opportunities through advertising sales," said Barber.

"The low cost and small footprint of our interactive kiosks make it possible to profitably enter new markets in locations that are more convenient to consumers than traditional retail locations. Reductions in labor and real estate costs -- typically associated with traditional video-rental outlets -- result in tremendous margins. Internet connectivity makes it possible for customers to have the choice of shopping online or on-site, and for management to access a variety of real-time usage, stocking and security data," said Barber.

Customers also have access to real-time inventory and promotions via the www.dvdplay.net Web site.

The interactive kiosks' models have capacities ranging from 100 to 500 disks, are operated by simple graphical touch-screen commands, and take credit and select debit cards. The total time for a complete transaction can be as fast as 20 seconds. Returns are even faster and are done back at the kiosks.

Philip Tomasi, vice president and design chief, explained the management tools in the DVDPlay system: "Data from our university locations (USC and UCLA) allowed us to design an Internet-based interface that provides a great deal of transaction and system information in a scalable, efficient format. By strengthening the network hub, we were able to design and construct truly cost-effective hardware that can be placed absolutely anywhere. The reactions to the system have been overwhelmingly positive."

The company is currently addressing partnerships to facilitate a global presence. The company's facilities are located in Newbury Park. For additional information, contact Bill Barber at 888/933-4DVD, via the company's Web site at www.dvdplay.net, or visit the VSDA booth (No. 1362) in the DVD Festival area.