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NuTech
Digital, Inc., (OTCBB: NTDL) |
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Dear Reader,
As the wheel of technology turns from 8-track to cassette, from
Beta to VHS and from vinyl to CD, it didn't take a great leap
of imagination to see VHS entertainment one day being supplanted
by potent DVD technology. Indeed it has happened and if you read
the industry information below, it will stagger your thinking
as to just how fast it has occurred.
The management at today's featured company acted just as fast
to capitalize on the technology change and has positioned itself
to take advantage of this new DVD explosion. At Stockupticks,
we like management groups that can move as fast as the trends
and better yet, move ahead of them. NuTech has accomplished both
these challenges and has already established itself with a stable
operation, a highly productive staff of 90 employees, and a very
respectable profit earned.
Lee Kasper, the founder and president of the company, has an
impressive background in the entertainment business and if you
look at whom he's negotiated licenses with, it is a veritable
“who's who” of content providers.
Take a few moments today to read about this business plan flying
high in the winds of change. After you’re done, you just might
even cross a name or two off your Christmas list with a purchase
of a slick DVD at their retail site.
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Breaking
News Today from NuTech Digital, Inc., (OTCBB: NTDL) |
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Press Release
Source: NuTech Digital, Inc.
Friday December 12, 5:06 pm ET
NuTech Digital Launches NuTech Platinum Concert
Series Music Division
New DVD Division to Capitalize on High Growth Concert Music
Industry
VAN NUYS, Calif.--(BUSINESS WIRE)--Dec. 12, 2003--NuTech Digital,
Inc. (OTCBB:NTDL - News), an emerging growth originator, licensee
and distributor of DVD home entertainment content, today announced
the formation of a dedicated music division. The new division,
known as NuTech Platinum Concert Series, was developed to capitalize
on the growing market for live musical performances on DVD and
the high return on investment possible with such product.
"NuTech has enjoyed a phenomenal year," stated Lee Kasper, President
and Chief Executive Officer of NuTech. "The company is profitable
and enjoys significant traction in its markets. We intend to replicate
our successful business model with NuTech Platinum Concert Series
and establish a presence in the DVD concert industry -- a high
growth market which we estimate will grow to $700 million by 2006.
"Our research indicates there are three distinct product types
in this market: super concerts, which can ship over 100,000 units
a year at an estimated wholesale cost; regular concerts, which
can ship over 50,000 units per year; and general concert footage,
which can ship over 20,000 units per year," continued Mr. Kasper.
"The wholesale range for these products is $9.99 to $14.95. Based
on these numbers and our low production costs, the revenue contribution
to NuTech can be very substantial, with the potential to increase
our top line as much as 50%."
NuTech's senior management has years of experience in the music
business. By leveraging these long-established relationships,
Mr. Kasper said that NuTech Platinum Concert Series is currently
securing rights to live performance footage of established, chart-topping
acts, as well as up-and-coming groups. Mr. Kasper continued, "We
are developing several strategies for penetrating this lucrative
market, from purchasing rights to existing but unpublished footage
to subsidizing performances in exchange for rights to produce
DVDs. Additionally, we believe there are other significant factors
that will aid in the success of NuTech Platinum Concert Series.
These include our competitors' ongoing struggles to meet distribution
demands, NuTech's deployment of revolutionary digital content
delivery systems, aggressive Internet-based marketing campaigns
and the opportunity to cross-market NuTech Platinum Concert Series
product to our existing customer base."
To read more, click
here
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About
NuTech Digital Inc. |
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NuTech is committed to capitalizing on the worldwide DVD revolution
as an originator, licensee and distributor of a broad range of
DVD content. NuTech engages in licensing and distributing DVD
(Digital Video Disc) entertainment programs for children through
adults in the home entertainment market.
With over 450 exclusive DVD titles in domestic release,
NuTech a stable distribution network and is currently profitable.
This foundation has
allowed NuTech to deploy revolutionary marketing technologies,
digital distribution channels and highly profitable affiliate
programs. These programs will
permit the Company to increase revenues and product line, maintain
or enhance profit margins, and further identify attractive opportunities.
Lee Kasper, the company’s founder and president, formed NuTech
in 1997 with the vision that DVD would become the chosen method
to view home entertainment. His entrepreneurial spirit and
experience, coupled with this vision, has enabled NuTech’s tremendous
growth and success over the past five years. Before launching
NuTech, Mr. Kasper was the key negotiator of licensing contracts
with over one hundred studios including Disney, Orion,
New Line, HBO, MCA, Twentieth Century Fox, and Playboy; developing
sales relationships with major retailers such as Circuit City,
Tower Records, Ingram, Wherehouse and Musicland.
NuTech is now extending its model into larger markets of the
estimated $11.6 billion industry. By leveraging NuTech's current
market position, leading-edge technology and low cost, high quality
products, management expects an exponential increase in revenue
over the next two-year period.
aINVESTMENT
HIGHLIGHTS
• Capitalize on the
explosive DVD market
• Profitable company
with repeatable business model
• Creative, focused management
team with industry leading experience
• Strategic relationships
that lower cost, add competitive advantage
• Revolutionary marketing
with DRM technology
• Sophisticated digital
content delivery augments proven distribution network
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The
NuTech Market |
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THE INTERNET
For the year end 2002, there were 55 billion searches on Google
alone! The #1 searched topic? Spiderman. Amazon.com, Inc.
(NASDAQ: AMZN) announced that its first quarter ended March 31,
2003 with Net sales of $1.084 billion, compared with $847 million
in the first quarter 2002, an increase of 28%.
June 2003 tracking data from Nielsen//NetRatings reveals that
the average global Internet user spent roughly 11 hours and 34
minutes online per month, while GLCensus found that the largest
percentage of respondents spent more than 25 hours online per
week. Moreover, the average monthly usage for a U.S. surfer
in June 2003 was 25 hours and 25 minutes at home, and 74 hours
and 26 minutes at work.
  
DVD SALES
The introduction of DVD has taken the home video market by storm.
Introduced in 1996, the DVD player is considered by many as the
most significant event in the consumer-electronics industry since
the audio compact disc. DVD video far surpasses the VHS
format in almost all respects.
The One Billionth DVD software unit is anticipated to
ship to retail in 2003. This milestone heralds DVD as the
most successful format launch in history for the industry, with
prerecorded videocassettes taking nearly 10 years to reach this
benchmark. By 2010, worldwide spending on DVD of $64.7 billion
versus $2.5 billion on VHS. In the third quarter of 2003, nearly
215 million DVD software units shipped to retail, a 40 percent
increase over the same period last year. The total number of
units shipped in North America has reached more than two billion
since the DVD format's launch in 1997.
a
Industry
Drivers
•
Consumer spending on DVDs grew 71% in 2002
•
Other licensees struggling to meet distribution challenges
•
Hentai market expected to grow to $70 million by 2006
•
Concert footage offers highest potential return on investment |
Current
Target Markets
•
Children's animation
•
Urban video, including extreme sports
•
Concert/interactive music
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Future
Markets
•
Libraries of existing concerts that have not yet been released
on DVD
•
Finance smaller, upcoming artists' performances in exchange
for distribution rights
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Purchase distribution rights to established, top-selling
artists' performances |
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The
NuTech Growth Strategy |
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NuTech intends to capitalize on the explosive DVD content and
distribution markets to drive growth and shareholder value. NuTech
intends to be on the cutting-edge of industry technology, maintaining
the highest quality product available, searching for profitable
opportunities to increase revenues and product line, maintaining
already high, profit margins and always searching for lower cost
production facilities and production alternatives.
NuTech expansion plans, simply put, include doing what the company
already does right, but on a larger-scale. With the explosive
growth of DVD, NuTech sees an opportunity to become one of
the leading distributors of DVD software. NuTech intends
to expand its film libraries, produce and buy music concerts for
worldwide rights, and mount an aggressive marketing campaign.
Included in the NuTech business model is the cost effective approach
of bringing product assembly and packaging fully in-house.
While
maintaining a stringent price structure,
NuTech’s
marketing includes:
| Exploit low-cost, high-return
niche content
Upstream/downstream affiliate
programs
Lower costs with better product
and increased sales
Increase technological leadership
through innovation
Increase market penetration
through cross-genre promotion
Create a dedicated high return
music division
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The continued establishment of
strategic alliances with major domestic and international
distributors.
Increase selling via the internet
Renting via the internet
Expand creative and extensive
distribution networks
Expand strategic licensing and
production alliances
Develop products driven by proven
consumer trends
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a
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The
NuTech Product Mix |
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 A A A A A
With distinct, exclusive, and high quality lines of products,
NuTech distributes products throughout the world via wholesale
distributors, retail stores, and the Internet. We also facilitate
authoring services to content providers in the entertainment industry.
The NuTech Web site, (Click
Here) is in full operation to offer DVD's to Web surfers and
entertainment fans.
NuTech has a diversified library in excess of 400 licensed titles,
which include Children’s Animation, Japanese Hentai Animation,
General, Action/Adventure, Horror, Late-Night Programming and
General Japanese Animation. NuTech is one of the largest producers
of Karaoke Music Video products in the United States and currently
has over 300 volumes with 4,000 songs published.
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NuTech
Selected Financial Highlights |
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a
52wk High-Low Range: $1.20 - $0.12
Avg Volume (3 months): 26,063
Share Price (11.6.03): $0.75
January 5, 2003- stocks open at $1.50 per share |
Fully Diluted Shares Outstanding: 12,716,875
Float: 4,000,000 (est.)
Market Cap: $9,537,656
Transfer Agent: Registrar And Transfer Company |
To view the SEC filings for NuTech, Click
Here
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For More Information On NuTech, Contact: |
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Corporate: Carmen Costillo
818.994.3831 ext.10, investors@nutechdvd.com
7900 Gloria Avenue, Van Nuys, California 91406
Investor Relations: Racquel Rivera
Trilogy Capital Partners, Inc., 800.330.6540, racquel@trilogy-capital.com
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has been compensated 21,322 shares of NTDL by NuTech Digital,
Inc. for preparation and distribution of this report and other
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