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VMD High Definition Disc Format Debuts

New Medium Enterprises, Inc. Unveils First Full Length Bollywood Movie ‘Shabd’, In Stunning High-Definition, On Its Red Laser 20GB and 40GB Versatile MultiLayer Disc -VMD-

NEW YORK, May 2, 2005 — New Medium Enterprises Inc. (OTCBB: NMEN) — US Presentation to be led by the first 3 hour Bollywood feature film, Shabd, in Brilliant True High Definition, (HD), along with film features and sporting events on New Medium Enterprises’ proprietary cost-effective VMD player, bringing razor sharp HD IMAGE QUALITY to mass market consumers, priced in the range of current Standard Definition discs and players.

New Medium Enterprises Inc. (OTCBB: NMEN) today announced it will unveil its highly anticipated pre-industrial VMD (Versatile MultiLayer Disc), the next generation HD Disc and Drive containing 20GB of storage capacity on the current red laser technology platform, before investors and news media in the United States. The HD content will be shown in genuine HD formats (MPEG-2, 1920×1080 interlaced and progressive scan).

The company plans to launch production and sales of 20GB and 40GB Discs and Drives in the fourth quarter of 2005. The drives will be inherently backward compatible with existing pre-recorded and recordable DVD and CD formats.

New Medium will demonstrate and describe this revolutionary new technology before significant investment bankers, portfolio managers, research analysts, retail brokers and special situation investors in New York City. In addition to one-on-one meetings with the financial community, New Medium will preview its technology for content providers and members of the news media during showings at 10:30 a.m., 12:30 p.m., 2:30 p.m., and 4:30 p.m. in Mid-Town Manhattan at the Broadway Screening Room located at The Brill Building, 1619 Broadway, 5th floor (between 49th & 50th) on Thursday, May 5, 2005.

VMD was recently demonstrated to enthusiastic groups of industry leaders in several countries and at CeBit in Hannover, Germany where it was hailed and embraced as a breakthrough and compelling solution for cost-effective High Definition pre-recorded discs and players.

“We are thrilled with the opportunity of unveiling this remarkable technology to the public,” says Mahesh K. Jayanarayan, spokesman on behalf of New Medium Enterprises, Inc., “We anticipate a similar resounding response from the attendees in the US as we have seen from the enthusiastic industry leaders that have already viewed our VMD products demonstration.”

The pre-recorded VMD has four layers on one side for an initial capacity of 20 GB and is entirely based on the current red laser DVD industrial infrastructure. VMD is designed for viewing High Definition content requiring high storage capacity and high bit rate (up to 40 Mbs), such as full-motion pictures, sports entertainment and other demanding video content and data. Pre-recorded VMDs are capable of playing next-generation, High Definition movies and other video content, catering to the vast consumer base of owners of HDTV television and large screen sets.

New Medium Enterprises, Inc. is positioned in the Optical Disc Storage sector, a huge and growing segment of the data storage market, of which DVD formats have an effective monopoly presently. This sector of the storage market is currently undergoing a cycle of change precipitated by the emergence of High Definition TV into the marketplace. New Medium Enterprises’ proprietary technology known as “Versatile MultiLayer Disc” (VMD) is a next-generation High-Definition successor to the current Standard Definition DVD technology and is based almost entirely on the existing, cost-effective current red laser DVD components and manufacturing technology platforms.

A DVD can only carry data on a maximum of two layers since an increase in the number of layers in the disc increases the interlayer cross talks and the data cannot be read properly. Today a standard 120 mm single layer disc is limited to its current capacity of 4.7GB single layer or 8.5 GB dual layer. A standard DVD only contains sufficient storage capacity to store a full movie in Standard Definition format, but not High Definition format.

The existing CD-DVD infrastructure is based on red laser components, which are highly cost- effective. They are easily manufactured by hundreds of firms all over the world. The entire manufacturing infrastructure including mastering and replicating processes have been created to accommodate red laser, with investments of billions by the industry and consumers to date.

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Competing High Definition formats currently proposed are attempting to change to a new technology based on blue laser. However, blue laser, while far more costly by itself to the entire value chain, will additionally necessitate the disc and player manufacturing industry – one of the largest consumer good branches of the Global economy – to refurbish their entire infrastructure.

VMD discs are scientifically very different from DVD discs, but are manufactured using exactly the same equipment as DVD discs at similar cost. VMD players based on the existing red laser industrial infrastructure are almost in all respects similar to DVD players. In particular VMD players are inherently backward compatible with DVDs and CDs that will enable viewing and listening of HD discs as well as current DVDs and CDs on VMD players. The anticipated player price for the end user will be approximately $250 USD, a price that NME believes will encourage mass acceptance of VMD technology.

VMD is a high quality format with unparalleled built-in copyright protection that offers the most cost- effective solution for next generation optical media. The size of the market for VMD technology is substantial, since VMD can be adapted to many optical storage formats proposed, adding substantial capacity, and versatility of applications and ease of manufacturing to many of the formats that become VMD capable. VMD technology is easily adaptable to blue laser once the cost of blue laser and associated manufacturing processes become competitive in consumer electronics markets.

Forward Looking Statements:
The information contained in this press release, including any “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 contained herein, should be reviewed in conjunction with the Company’s Annual Report on Form 10-KSB, 8k Reports and other publicly available information regarding the Company, copies of which are available from the Company upon request. Such publicly available information sets forth many risks and uncertainties related to the Company’s business and such statements, including risks and uncertainties related to that are unpredictable and outside of the influence and/or control of the Company.

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