Press Release

MOBILE DIGITAL VIDEO LAUNCHES MO–DV PLAYER WITH 100–MINUTE–MOVIE–ON–CARD TECHNOLOGY FOR PALM POWERED HANDHELDS AND SMARTPHONES

Press Contact:
Jessica H. Fullmer, CEO
408 374 7235
408.348.3201 (cell)
408.374.7233 (fax)
jfullmer@mo–dv.com
www.mo–dv.com

SAN JOSE, Calif., PalmSource Mobile Summit and DevCon, May 24, 2005 — Mobile Digital Video, a technology and media company, today announced MO–DV Player, the mobile digital video player based on Mobile Digital Video's new entertainment technology. MO–DV Player enables users of Palm Powered™ handhelds and smartphones to play, store and protect mobile multimedia content while on–the–go. Packaged with video and music content on storage cards, MO–DV Player is the first patented, "one card fits all" solution with the ability to play, store, and secure digital content for current smart mobile devices with an expansion slot.

Mobile Digital Video's MMC/SD memory card technology turns Palm Powered devices into full–service video players for entertainment, training, and viewing of multimedia content.

By combining audio and video content along with the MO–DV Player on the memory card, multimedia content can be played across a wide variety of Palm Powered devices. The Mo–DV Player also provides a high level of digital rights management (DRM) and anti–copy protection. The Mobile Digital Video technology secures content via industry–approved security methods including, the Advanced Encryption Standard (AES) and card sequencing. This results in assurances that content remains protected and that artists, entertainment providers, developers and owners of the intellectual property remain confident in proper revenue return.

"We believe that the MO–DV Player extends the functionality of Palm Powered™ smart mobile devices by delivering an, all–in–one, DRM protected, high–quality mobile video experience," said Larry Berkin, director developer marketing, PalmSource. "By combining video content, a media player and DRM protection all onto a single SD/MMC card, Palm OS® users can instantly experience a whole new world of mobile content previously unavailable in one complete package."

50 Million Potential Users today, 500 Million installed base by 2008 (source: Zelos Group. Inc., 2004) Competing mobile video solutions in the global marketplace depend on the infrastructure to deliver content. This requires utilizing the currently undeveloped 3G networks with unreliable area coverage and high data error rates. Internet downloads can be very slow and real time streaming quality varies greatly with the quality of connection. The resulting carriers' costs for the airtime delivery of content therefore cannot compete with the cost of content delivered on storage cards. Trends indicated by industry experts see the rapid emergence of full featured mobile devices at inexpensive prices integrating all the functionality and features of current high–end mobile devices. However, the millions of existing Palm Powered users can begin to utilize this technology today. While the current population of smart mobile devices capable of utilizing the Mobile Digital Video technology is currently over 50 million, the annual number of devices sold in 2008 is predicted to be nearly 300 million annually according to the Zelos Group, Inc. Seamus McAteer from the Zelos Group projects the sales of multimedia capable smart mobile devices to be over 42% of the total mobile device market in 2008. Currently, the world population of smart mobile devices is predicted to exceed 500 million units by the end of 2008.

Enabling A Wide Spectrum of Digital Content for Viewing on Mobile Devices Mobile Digital Video plans to distribute music, movies, music video albums, TV shows, personal enrichment, and training videos on memory cards. Cards featuring mobile multimedia content with be available for sale through retailers and via in–store kiosks.

Key features:

• Player/decoder and audio/video data reside together and provide basis for DRM security.
• One card fits all devices with compatible SD/MMC expansion slots.
• Security: Content stays secure with encryption and anti–copy serialization.
• Utilizes existing device configuration and infrastructure currently in place
• MO–DV Player accommodates different screen resolutions and is compatible with Palm OS Garnet. and above
• Based on patent pending technology

Mo–DV Technology will Revolutionize Access to Media
"Mo–DV's technology will revolutionize how people access media content. Consumers will love the flexibility and convenience of carrying a small card with them everywhere they go that lets them choose what content – entertainment, ring tones, games, training – to store and what platform to play it on and when to play it. Content owners will love the security features that open up a huge market without loss of content ownership." Dr. Cliff Reader, co–founder of the MPEG–4 video standard and China's AVS video standard.

The New Way to Distribute Digital Content
"I like the fact that I was able to view the content immediately without any modification. All I had to do is just place the card inside the phone's slot and the movie just started playing. The picture and sound quality are exceptional. My son loves it and could not put it down. Mo–DV is enabling a new way to distribute digital content to the customer and allowing the entry of new business models to the market," said Takashi Kameda, Vice President of Venture Investment of ITOCHU Technology, after experiencing the mobile movie.

Availability:
At the PalmSource show , sample beta video cards will be available for the press and select individuals. The sample cards will contain video tracks of "Run for the Roses" and "Deal" from the upcoming JGarcia/Rhino records release of the Jerry Garcia Band from the Shoreline Amphitheater show of September 9, 1990. Cards with video entertainment titles are scheduled to be on sale for $ 23.95 soon.

About MO–DV:
Mo–DV Makes Mobile Movies. Mo–DV is the premiere innovator and provider of world–class technologies for storing, playing, protecting and distributing mobile content on storage cards. We continually strive to engage our partners and customers with integrity, high quality and sustainable business practices. Mo–DV is headquartered in Campbell, CA. and founded in 2002.

See www.mo–dv.com for more information.

PalmSource, Inc. PalmSource, Palm OS, Palm Powered, and certain other trademarks and logos appearing on this press release are trademarks or registered trademarks of PalmSource, Inc. or its affiliate in the United States, France, Germany, Japan, the United Kingdom, and other countries. These marks may not be used in connection with any product or service that does not belong to PalmSource, Inc. (except as expressly permitted by a license with PalmSource, Inc.), in any manner that is likely to cause confusion among customers, or in any manner that disparages or discredits PalmSource, Inc., its licensor, its subsidiaries or affiliates. All rights reserved.