Exhibit 99
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 LICENSES TECHNOLOGY TO PRO TECH IN EXCHANGE FOR 60% OF PRO
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TECH COMMON STOCK WORTH $15.5 MILLION AT CURRENT MARKET VALUE
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WESTPORT, Conn, September 13, 2000 -- NCT Group, Inc. (OTCBB: NCTI) today
announced that its subsidiary NCT Hearing Products, Inc. has granted an
exclusive license to Pro Tech Communications, Inc. (OTCBB: PCTU) for rights to
certain NCTI technologies for use in lightweight cellular, multimedia and
telephony headsets. In consideration for this license, NCTI has received 60% of
Pro Tech's common stock with a current market value of approximately $15.5
million, based on yesterday's closing price. NCTI technologies included in the
license are NoiseBuster(R) active noise reduction and ClearSpeech(R) noise and
echo cancellation.
Pro Tech currently sells high quality, lightweight headsets to high-profile
users, among them the NASA space program and McDonald's. Pro Tech founder Keith
Larkin previously founded Plantronics and ACS Wireless (now owned by GN Netcom),
two of the world's leading telephone headset companies with approximate combined
sales of $400 million. Pro Tech, with its current innovative product offerings
and planned products incorporating NCTI's advanced technologies, is poised to
offer differentiating features such as noise cancellation that are expected to
capture the attention of this growing market.
"Working with NCT will allow us to grow our business through the expansion of
our current product lines and the creation of new ones," said Richard Hennessey,
president, Pro Tech. "We look forward to providing the lightweight
communications headset market with the technological advances available in other
markets."
Keith Larkin, chairman and CEO, Pro Tech, added, "It is not often that you can
bring breakthrough technology into an established market and transform that
market. Our relationship with NCT affords us that opportunity and we believe
that NCT technology gives Pro Tech a major competitive advantage."
The present annual market for all applications of communications headsets is
estimated to be in excess of $700 million. The market for telephone headsets is
continually growing with the proliferation of telemarketing and call centers.
Industries where call centers are prevalent include airlines and hotels
(reservation agents), computers (tech support), financial trading, retail
catalogs and emergency services. As multimedia computer applications such as
voice recognition become more widely used by businesses and consumers, so too
will the use of multimedia headsets. The market for cellular telephone headsets
is expected to grow as further information becomes available about the health
threats of placing a cellular phone to one's ear. The U.S. Food and Drug
Administration recently announced that it will supervise an industry-funded
research project to examine whether cellular phone users may be harmed by the
energy emitted by the devices.
"This is a timely and highly strategic arrangement for both companies," said
Michael J. Parrella, chairman and CEO, NCTI. "Bringing together Pro Tech's
exceptional product knowledge and market reputation with NCT's technical
expertise creates a winning combination that is sure to result in Pro Tech's
getting its fair share of the rapidly-growing lightweight headset market."
Pro Tech will be responsible for all product development, sales and marketing
efforts in the designated markets. NCT Hearing will continue to develop
technology and products for its other markets of interest including consumer
audio, safety, two-way radio and hearing aids.
About Pro Tech Communications, Inc.
Pro Tech Communications, Inc. designs, develops and manufactures headsets and
new audio technologies for applications in fast-food, telephone and with the
National Aeronautical Space Administration (NASA). It currently has marketing
and strategic agreements with the McDonald's Corporation and The Boeing Company.
For more information, refer to the Company's World Wide Web site at
www.protechcom.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
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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
