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MSU Devices Sells MSU V5TV to Gruppo Editoriale Motta Italy

MSU Devices Sells MSU V5TV to Gruppo Editoriale Motta Italy

MSU Devices Inc. has announced that its strategic distribution partner in Italy, Eknoware SRL, has signed an agreement with Gruppo Editoriale Motta to sell 1,500 units of the MSU V5TV Internet computer.

Gruppo Editoriale Motta signed an initial order for 500 units, which are already in manufacturing with expected delivery in May 2002. A further 1,000 units will be delivered in June 2002. Gruppo Editoriale Motta forecasts they will purchase an additional 5,000 units during calendar year 2002.

The MSU V5TV has been fully localized for Gruppo Editoriale Motta and the Italian market by Eknoware and the appearance of the MSU V5 was customized to meet Gruppo Editoriale Motta's OEM specifications by MSU's development team.

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The MSU V5TV will also feature MSU's new Secure V5 Smart Card software technology.

Gruppo Editoriale Motta has been promoting the sale and usage of their Motta encyclopedias for a number of years by offering access to their library of proprietary content to customers via set-top boxes, which they make available at no cost to their customers other than a regular "ISP" monthly subscription fee. Gruppo Editoriale Motta decided in 2001 to undertake a complete review of available Internet access devices. Gruppo Editoriale Motta completed their review in April 2002, and they chose the MSU V5TV with Secure V5 Smart Card software technology.

Gruppo Editoriale Motta is MSU Devices' first customer for its new MSU Secure V5 Smart Card software technology deployed in the MSU V5TV, which features a built-in GEMPLUS Smart Card reader. Gruppo Editoriale Motta's end users will use specified Smart Cards to lock and unlock the MSU V5TV made available to them at no cost based on a monthly subscription fee basis.

When the customer's Smart Card is not present or it is deemed "invalid" because the customer did not pay their monthly subscription fee, the MSU V5 keyboard and mouse are automatically disabled. The content of the Smart Card will be encrypted using 3DES (Data Encryption Standard), the encryption method commonly used in bank cards.

"MSU Devices is thrilled to have Gruppo Editoriale Motta as its first significant customer in Italy and to have worked so closely with Eknoware to make this sale possible. Gruppo Editoriale Motta's incredible experience in the Internet access device market makes this win all the more satisfying for MSU Devices," said Mr. Bruce Walter, President and CEO of MSU Devices Inc. "We are particularly pleased that Gruppo Editoriale Motta and Eknoware have been so instrumental in helping us localize our products for the Italian market and in helping us develop the specifications for our new Secure V5 Smart Card software technology."

"Eknoware is particularly pleased to have signed this distribution agreement and starting our relationship with MSU Devices so positively with the order for V5TV," stated Stefano Zoni, Eknoware SRL Sales and Marketing Director. "We have considerable experience in this market and were one of the first companies to launch into the Information Appliance market just over four years ago in Italy. With the relationships we have with our customers, it is important that we sell and market product that at a minimum meets expectations. With the MSU V5 incorporating the latest technology, such as the Secure V5 Smart Card technology, it enables us to meet our customer expectations. We look forward to this being the start of a very productive relationship."
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