XVD Announces New Company Structure to Address Global Business Opportunities in Digital Media Communication; Supports Increased Technology Licensing, Innovative Product Solutions and Continuation of XVD's Superior Service

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New web site, http://www. xvdth.com coincides with announcement.

XVD, the company that pioneered XVD™ digital compression -- the most advanced real-time video compression technology -- has undergone a corporate restructuring designed to better enable the organization to meet the growing demand for its technologies and products.

Effective April 1, 2007, the company has been restructured into separate entities under a new corporate entity XVD Technology Holdings, LTD.

In the new business structure, XVD Technology Holdings, LTD (XVDTH) located at Shannon, Ireland, is responsible for global licensing of XVD™ technology and for the acquisition of new technologies, that can increase the effectiveness and value of Internet commerce. A wholly owned US subsidiary, XVD Technology Holdings, Inc. (XVDTH-USA) based at San Jose, CA, is responsible for new and innovative product design, technology integration into OEM products, and implementation of hardware and software projects.

XVDTH has also formed a strategic relationship with two independent licensees; XVD Corporation in San Diego, CA, and XVD Japan in Tokyo. These entities are responsible for the sales, marketing and distribution of XVD™ products in their respective regions.

XVDTH presently serves the professional and enterprise markets for encoding and decoding technology in digital media applications, including products that address the growing needs of major global television networks, institutional and corporate media, telemedicine, distance education, security, surveillance and government/defense market sectors. Major television networks in the U.S. and Japan have tested and endorsed XVD™ technology and are using its unmatched capability in regional and global operations.

XVD™ technology has become widely recognized for its application to innovative products and solutions that deliver high-quality digital video and audio at the lowest possible encoded data rate, making better use of available network capacity at significantly reduced cost, with simplicity and operational reliability. The organization's present focus is on digital media processing and transmission based on the advanced XVD™ and XVD™ Plus technologies that have some 20 patents issued.

Announcing the new company structure, Keith Dunford, President and CEO of XVD Technology Holdings, LTD, said, "The rapid acceptance of XVD™ codec and related technologies has been so outstanding, that it quickly became necessary for us to adjust our organization to meet the demand for licensing of XVD™ technology to others and to better support the demand for our innovative products and systems enabled by XVD™ technology. Our new business structure is designed to ensure that we are able to meet our customers' needs today and far into the future, "To put it simply," Mr. Dunford continued, "XVD™ technology has changed the rules of the game in delivering higher performance, operational flexibility, value and exceptional customer service."

About XVDTH
XVD Technology Holdings LTD. (XVDTH) is a high-technology enterprise having its corporate headquarters at Shannon, Ireland, with associated entities, technology partners, representatives and distribution channels in the USA, and Japan. The company is well-positioned to leverage its technology assets into global business opportunities that use the public Internet as the primary method of information acquisition, exchange and delivery. This includes the fast-growing market for digital media technology, solutions, products and services, in which XVDTH has significant core technology and intellectual property.

About the new website: http://www. xvdth.com
Concurrent with announcing the new company structure, XVD Technology Holdings LTD. launched its new website, which presents comprehensive information on the company and its affiliates, partners, products and licensing opportunities for a wide range of applications. Also included is an in-depth look at all XVD products, including XVD NewsHound II lightweight HD-SD wireless encoder and DVB-T/COFDM transmitter system that makes the "go anywhere" news gathering concept an immediate reality.

For complete information, visit http://www. xvdth.com.

Contact information:
For technology licensing, technology development partnerships and investment opportunities:

XVD Technology Holdings, LTD.
Universal House,
Shannon Business Park,
Shannon, Co. Clare
IRELAND
Tel: +353-61-718517
Fax: +353-61-703441
Tel: +353-61-718517
Fax: +353-61-703441
US Office: 408-325-8803
Intl Cell: 408-505-5803
kdunford @xvdth.com
http://www. xvdth.com

For product design, technology integration and implementation projects:
XVD Technology Holdings, Inc. (USA)
71A Vista Montana
San Jose, CA 95134
Tel: +1 408 325-8801
Fax: +1 408 325-8838
General inquiries: info @xvdth.com

For XVD™ Digital Media Products and Systems:
XVD Corporation (USA)
10636 Scripps Summit Court
Suite126
San Diego, CA 92131
Tel: +1 858 635-9363
Fax: +1 858 635-9606
Sales inquiries: sales @xvdcorp.com
General inquiries: info @xvdcorp.com

For Product Inquiries and Technology Licensing in Japan:
DEFTA Technologies (Japan)
4-21 Yotsuya
Shinjuku-ku
Tokyo, Japan
Tel +83-03-5369-2384
Sales inquiries: sales @xvdcorp.com
General inquiries: info @xvdcorp.com

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ROBERT SCHAEFER
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