Exhibit 99
[NCT Group, Inc. Letterhead]
CONTACTS:
Media: Joanna Lipper Investor: Robert Onesti
----- --------
NCT Group, Inc. NCT Group, Inc.
(203) 226-4447 ext. 3506 (203) 226-4447 ext. 3502
(203) 226-3123 (fax) (203) 226-3123 (fax)
[email protected] [email protected]
FOR IMMEDIATE RELEASE
NCTI SUBSIDIARY DISTRIBUTEDMEDIA.COM COMPLETES ACQUISITION
OF THEATER RADIO NETWORK
$3.3 Million In Annual Revenues From Advertising In Multiplex Cinemas Nationwide
WESTPORT, Conn, August 23, 2000 - NCT Group, Inc. (OTCBB: NCTI) subsidiary
DistributedMedia.com, Inc. (DMC) today announced the completion of the
acquisition of Theater Radio Network (TRN) in a stock swap transaction. TRN is a
provider of entertainment audio programming in multiplex cinemas nationwide with
annual revenues of approximately $3.3 million. TRN is now a wholly-owned
subsidiary of DMC called DMC Cinema, Inc. and will be run by current TRN
management. "The Sight & Sound(TM) system will immediately increase our
revenue-generating capacity because it will expand our current programming from
primarily the screening areas of the theater into theater lobbies, concession
and waiting areas," said Allan Martin, chief executive officer, Theater Radio
Network. "Additionally, the Sight & Sound system adds a visual billboard
component to our current audio-only programming. We expect to make great strides
in market penetration with this larger multimedia presence." The current TRN
programming is delivered to each theater via compact disk. Conversion to the
digital Sight & Sound system will allow for remote delivery of programming and
advertising to all sites, improving efficiency and enabling the quick execution
of programming changes. The patent pending system also continually adjusts
volume based on background noise so that the audio is always maintained at a
foreground level. "This acquisition provides us with a ready-made network of
9,000 screens which is a substantial base on which to build DMC Cinema, a
cinema-focused advertising network. We believe that this focus has tremendous
advertising potential," said James A. McManus, chief executive officer and
president, DistributedMedia.com, Inc. "Every month, TRN reaches more than 40
million listeners on behalf of its advertisers. Now, those advertisers can
deliver visual impressions to their theater-going audience as well as audio
programming. In addition, because a large number of TRN theaters are mall-based,
advertisers will be able to take advantage of synergies such as cross promoting
with mall-based retailers that are also a part of our other networks. " DMC
Cinema is a synergistic expansion to DMC's entertainment-focused retail networks
which include Barnes & Noble college stores with 380 locations; Wherehouse
Entertainment stores with 600 locations; and Trans World Entertainment stores
with 1,000 locations. U.S. consumers spent approximately $3 trillion at retail
in 1999 and retailers are devising ways to keep shoppers in the store longer by
delivering entertainment value to the shopping experience. The Sight & Sound
system is attractive to retailers because it delivers CD-quality music which
truly enhances the ambience of the retail environment, and is attractive to
consumers because the audio advertisements and printed billboard messages are
delivered in the context of entertaining music programming.
About Theater Radio Network
Theater Radio Network produces a radio show that is broadcast in movie theaters
nationwide. Its program is an entertaining mix of contemporary music, celebrity
interviews and trivia. Theaters that are part of the TRN network include Sony,
Loews, Cineplex Odeon, Regal, United Artists and others. Advertisers include
America Online, ABC Television, DreamWorks, Warner Bros., IBM, and Amoco, among
others.
About DistributedMedia.com, Inc.
DistributedMedia.com, Inc., a subsidiary of NCT Group, Inc., sells place-based
broadcast and billboard advertising through its innovative microbroadcasting
network of Sight & Sound(TM) systems deployed to a wide array of out-of-home
environments. For more information refer to www.distributedmedia.com.
About NCT Group, Inc.
NCT Group, Inc. is a publicly-traded, high-tech company. Having historically
specialized in the utilization of sound and signal waves to electronically
reduce noise, improve signal-to-noise ratio and enhance sound quality, the
Company of today is applying its technological innovations to the areas of
media, through its DistributedMedia.com, Inc. subsidiary, and communications,
with a specific concentration on IP telephony applications. The Company's
emerging technology incubation strategy nurtures development of NCT technologies
and complimentary technologies from outside developers. Current offerings
include the proprietary Sight & Sound(TM) system, a place-based advertising
medium installed in retail and commercial locations; ClearSpeech(R), a suite of
software algorithms for integrated Internet telephony and enhanced speech-driven
applications; silicon micromachined microphone chips for use in communications
products; and Java(TM) chip technology targeted to developers of smartcards,
appliances and communications applications. The Company's award-winning brands
include Gekko(TM) flat audio speakers and NoiseBuster(R) and ProActive(R) active
noise reduction headsets. For more information, refer to 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.
