Teletouch Announces Signing of Exclusive Three-Year Master Distributor Agreement for Retail and Third-Party Distribution in Nor
22 June 2006 - 6:08AM
Business Wire
Patented SD-Memory Card Compression and Digital Rights Management
(DRM) Technology Allows Users to Watch Movies, TV Shows, Play Games
and Enjoy a Variety of Content on Their Cellular and Other Mobile
Devices Teletouch Communications, Inc. (AMEX:TLL) today announced
that it signed an exclusive, three-year Master Distributor
Agreement for North America with Los Angeles, CA-based ROK
Entertainment US, Inc., a majority-owned affiliate of United
Kingdom-based ROK Corporation, Ltd., a maker of technology that
allows people to watch movies and TV shows, play games and enjoy a
variety of content on their cellular handsets and other portable
devices. Although confidential financial terms were not disclosed,
the comprehensive Master Agreement grants Teletouch the exclusive
right to distribute ROK's patented ROK Player, related intellectual
property, products and licensed content directly to retailers,
third-party distributors and wholesalers in the United States,
Mexico and Canada. The ROK software provides full Digital Rights
Management, or "DRM" protection for content compressed by the
patented technology, and is especially designed for portable
devices, including cell phones and other devices that use commonly
available SD-chip cards and similar storage media. Jonathan
Kendrick, CEO of ROK Corporation stated, "The patented ROK Player
technology does four key things. It compresses rich content onto SD
memory cards in a proprietary manner, reducing a two-hour movie to
fit onto a single 64MB card for use on portable devices.
Uncompressed, that same movie would take at least a 500MB card,
which of course is much more expensive. Secondly, the ROK Player is
built to be "plug-and-play," for ease of use in compatible devices.
Third, it plays full-frame high-resolution video at 24 frames per
second (full motion), creating a more satisfactory user
experience." Kendrick continued, "But perhaps most important to
content owners such as studios, record labels and game developers
is that their content will be delivered with full DRM protections
built right in. Frankly, it's far easier for a hacker to rip a DVD
than one of our ROK Player loaded chips." John-Paul DeJoria, CEO of
John Paul Mitchell Systems and Patron Tequila, among other
holdings, said this, "As an early, significant investor in ROK
Entertainment, I believe in this technology. My eight-year-old son
can easily work the player, and watching movies or playing games on
mobile devices is the future. With ROK's recently granted patents,
I think movie studios, mobile game developers, advertisers and
other content providers will want the protections afforded by these
patented ROK technologies." Kendrick added, "We chose Teletouch as
our North American distributor because of its long history in the
wireless market, for its help desk and call center capabilities,
for its executives' extensive retail experience and for its deep
relationships in the wireless and consumer electronics business,
both directly and through its commonly controlled affiliate,
Progressive Concepts, Inc. This relationship will increase our
speed to market, and will also allow us to better concentrate our
own resources on establishing large content licensing deals,
continued software-to-handset utilization development and on
completing our U.S. Internet-based white-label Media Store. We are
very excited to work with the Teletouch team." Teletouch CEO, T. A.
"Kip" Hyde, Jr., stated, "Last month, we announced a fundamental
strategic shift 'back' towards the business of mobile. By
establishing this exclusive retail and wholesale distribution
agreement for an entirely new portable multimedia content medium in
North America, the Company is taking the first steps toward
directly participating in the high-growth, multi-billion dollar
cellular handset and content download markets. ROK's patented
technologies, which provide the ability to watch movies, TV shows,
music videos and play casual games, are at the forefront of this
revolutionary change in the mobile industry." Hyde concluded,
"Specifically, ROK's ability to provide DRM content protection for
rich-media downloaded directly from the Internet, Over-the-Air, or
through retail kiosks for use on a cell phone -- the most widely
available consumer electronic portable device today -- represents
an enormous new sales opportunity for retailers of many kinds,
including big-box and chain consumer electronics stores, theaters,
music and book stores, as well as various cellular and emerging
WiFi carriers, MVNO's and others. The opportunity for Teletouch to
become an exclusive distributor of a DVD-replacement technology
that fits in the palm of your hand is a once-in-a-generation
business opportunity, and we are pleased that ROK has selected us
for the task." About ROK Entertainment US, Inc. Formed in 2004 by
noted UK entrepreneur Jonathan Kendrick and John-Paul DeJoria, CEO
of John Paul Mitchell Systems and Patron Tequila, ROK Entertainment
is privately-owned with a mandate to create original and innovative
technologies to deliver full-length content and entertainment to
mobile phones and other portable devices. ROK was awarded a primary
patent in January 2006 for the storage of DRM-protected
audio-visual content on memory cards for play on mobile phones and
other mobile devices. ROK Entertainment is a subsidiary of ROK
Corporation, which provides technologies such as content-loaded
memory cards and multi-channel mobile TV over 2.5G and above GPRS
networks. With more than 100 staff worldwide, ROK has offices in
the UK, Los Angeles and Beijing with Joint Venture partnerships in
Brazil, Russia and Taiwan. More information about these companies
and leading edge technologies is available at www.rokcorp.com,
www.rokent.com, www.rokplayer.com, www.rok.tv and www.rokent.com.
About Progressive Concepts, Inc. In continuous operation for over
30-years, privately-held PCI is a leading provider of cellular
voice, data, and entertainment products and branded wireless
services to individuals, businesses, and government agencies
through its chain of retail stores (Hawk Electronics), branded
sub-agents and direct sales force throughout Texas and Arkansas.
PCI provides the cellular services on the Cingular Wireless
network, and maintains its own billing, data and customer service
operations for its nearly 100,000 subscribers, businesses and other
licensed clients. PCI also operates a significant wholesale
distribution business serving smaller cellular and automotive
retailers, car dealers and cellular service providers throughout
the country. More information about PCI and Hawk Electronics can be
found at www.hawkelectronics.com. About Teletouch Communications
Teletouch offers a comprehensive suite of telecommunications
services, including cellular, two-way radio communications,
GPS-telemetry and wireless messaging services throughout the United
States. TLL acquires, bills and supports a large, primarily
commercial business and government base of subscribers, under its
own network of FCC licensed spectrum in Texas, Louisiana, Arkansas,
Oklahoma, Alabama, Missouri, Mississippi, Tennessee, and Florida.
Teletouch's common stock is traded on the American Stock Exchange
under stock symbol: TLL. Additional information about Teletouch can
be found at: www.teletouch.com. All statements in this news release
that are not based on historical fact are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and the provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended (which Sections were
adopted as part of the Private Securities Litigation Reform Act of
1995). While management has based any forward-looking statements
contained herein on its current expectations, the information on
which such expectations were based may change. These
forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of risks,
uncertainties, and other factors, many of which are outside of our
control, that could cause actual results to materially differ from
such statements. Such risks, uncertainties, and other factors
include, but are not necessarily limited to, those set forth under
the caption "Additional Factors That May Affect Our Business" in
the Company's most recent Form 10-K and 10-Q filings, and
amendments thereto. In addition, we operate in a highly competitive
and rapidly changing environment, and new risks may arise.
Accordingly, investors should not place any reliance on
forward-looking statements as a prediction of actual results. We
disclaim any intention to, and undertake no obligation to, update
or revise any forward-looking statement.
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