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DistributedMedia.com Formed As NCTI Subsidiary.

STAMFORD, Conn.--(BUSINESS WIRE)--Dec. 8, 1998--

Internet Used to Distribute Audio Programming and Targeted Advertising

IPO and Rights Offering to NCTI Stockholders Planned, President Named

Digital Audio Broadcast and Billboard Advertising Delivered Via

Gekko(TM) Flat Speakers and Printed Speaker Grilles

NCT Group, Inc. (NASDAQ: NCTI) announced today that it has formed a new subsidiary called "DistributedMedia.com, Inc." (DMC) to sell broadcast and billboard advertising to commercial venues nationwide through a distributed network of Sight and Sound(TM) audio systems linked via the Internet. The business will focus on providing advertisers with a way to reach consumers at commercial establishments such as restaurants, bars, waiting rooms, salons, malls, health clubs, airports, etc. in the Top 100 US markets and will utilize several of NCTI's patented and patent pending technologies. Digital delivery and Internet addressing allows advertisers to optimally target their media dollars.

It is NCTI's present intention to finance the new venture by means of a combination of an initial public offering of DMC's common stock and an offering to NCTI stockholders of rights to purchase DMC common stock. The specific terms and conditions of these offerings have yet to be determined and this news release is not to be deemed an offering of any such securities which, at the appropriate time, will be made only by means of a prospectus meeting the requirements of applicable securities laws.

James McManus, former President and CEO of Radio City Productions, the management company of Radio City Music Hall, has joined DMC as President and CEO. Mr. McManus helped revitalize the famous New York landmark, first as Chief Financial Officer and then for 10 years as President and CEO. Under his guidance Radio City Music Hall became the "Number One Venue" in the country, a position it has held for the last six years. Prior to joining Radio City Music Hall, Mr. McManus executed a financial turnaround plan for Great Adventure Park after having spent 10 years in various positions with the Disney Company.

Each DMC Sight and Sound(TM) system installation consists of an NCTI-developed and licensed Digital Broadcast Station(TM) delivering proprietor-selected preprogrammed music. Via the Internet, on a virtually on-demand basis, the Digital Broadcast Station(TM) receives advertising spots which will be automatically integrated into the music programming. The Digital Broadcast Station(TM) delivers CD-quality programming without any need for personnel involvement.

The DMC Sight and Sound(TM) system also consists of the company's wall-mounted Gekko(TM) flat speakers as output devices for the audio programming and broadcasting. The flat speakers' unique "sweet space" dispersion characteristics deliver the most comfortable listening environment to all patrons without creating audio dead spots. The speaker grilles installed over the speaker will be customized advertising billboards utilizing the company's digital high-resolution process to deliver printed advertisements of high quality without impeding the acoustic output of the speaker.

"The combination of sight and sound allows advertisers a unique opportunity to deliver messages with a heretofore unavailable combination of point of sale - broadcast advertising and billboard advertising at the same time, at the same venue," said Jim McManus, President and CEO of DMC. He continued, "The commercial establishments targeted by DistributedMedia.com will reach consumers in a captive situation where they are likely to spend a substantial block of time. The Sight and Sound(TM) solution is an opportunity for an advertiser to effectively target a market, expand reach, create awareness, and influence purchases at the time purchases can actually occur."

"DistributedMedia.com is a natural extension of NCTI's development efforts in flat panel speakers, sound dispersion techniques and Internet-related technologies, and one that will enable us to participate in the multi-billion dollar out-of-home advertising market," said Michael Parrella, President of NCTI and DMC's Chairman. "After two years of development, we are glad to have Jim McManus on board to establish Distributed Media.com as the newest, most innovative media form available to advertisers today."

NCTI is a leading technology developer with an extensive portfolio of proprietary algorithms and a wide variety of product offerings for consumer, commercial and industrial applications. The Company specializes in the utilization of sound and signal waves to reduce noise, improve signal-to-noise ratio and enhance sound quality. For more information, refer to the company's World Wide Web site at http://www.nct-active.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain information contained in this press release are forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 (the "Act"), which became law in December 1995. In order to obtain the benefits of the "safe harbor" provisions of the Act for any such forward-looking statements, the Company wishes to caution investors and prospective investors about significant factors, which among others, have in some cases affected the Company's actual results and are in the future likely to affect the Company's actual results and cause them to differ materially from those expressed in any such forward-looking statements. Investors and prospective investors should read this press release in conjunction with the Company's most recent Form 10-K and Forms 10-Q.

Visit our World Wide Web site at WWW.NCT-ACTIVE.COM
COPYRIGHT 1998 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1998, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Dec 8, 1998
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