Brilliant Technologies Corporate Update
Brilliant Technologies Corporation (OTCBB: BLLN) today provided the following corporate update reviewing a range of noteworthy material developments since the start of Q4, 2006, and updating progress toward the launch of the world’s first legal ad-supported peer-to-peer music service, Qtrax.
On the personnel front, Brilliant has attracted three industry leaders to sign on to the Qtrax cause. Most recently Andrew Nibley, the Chairman and CEO of Marsteller, the successful New York-based advertising, interactive and promotions arm of Burston-Marsteller, agreed to lead the Company’s newly-formed Qtrax advisory board. Mr. Nibley and Qtrax were featured in an article in the February 10th issue of Billboard Magazine entitled “Revenue On Tap,” which also highlighted Qtrax in a list of top companies to watch in the ad-supported music arena (among Google, Yahoo, AOL, YouTube & Baidu).
Kenneth R. Parks joined Brilliant as Chief Operating Officer from EMI Music, where he had been serving as Senior Vice President, Strategy & Business Development, on a global basis. Mr. Parks’ comments on the ad-supported model and Qtrax were recently featured on the front page of the International Herald Tribune in an article entitled “Internet pushes the concept of ‘free’ content, supported by advertising.” (http://www.iht.com/articles/2007/01/17/yourmoney/media.php?page=1)
Rick Riccobono accepted the position of Executive Vice President Digital Rights Management at Brilliant. Riccobono is a rights expert and pioneer in digital distribution, establishing entertainment media licensing agreements in the US and the international market for a number of new mobile entertainment and digital distribution products.
“The music industry is clearly suffering significant distress. CD sales are falling rapidly, the selling of individual digital tracks is nowhere near making up for the losses. It seems to us the model we are pioneering – free ad-supported music – has the potential to be the core music model for the future and generate substantial revenue. The broad expertise and focused skill-sets that Andy, Ken and Rick have brought to Brilliant are invaluable in our drive to establish our model as the industry standard. With Qtrax we are seeking to help labels and artists monetize current online behavior without challenging users to pay for something they have viewed as free,” stated Allan Klepfisz, Chairman and CEO of Brilliant Technologies. “I am proud to be working with the thought and business leaders on the team we are assembling.”
In addition to the high-profile Qtrax articles mentioned above, Qtrax and Brilliant recently enjoyed positive references in the Wall Street Journal, the Guardian, the New York Times, Business Week and a host of other notable publications. “We are pleased with the steeply escalating interest in Qtrax from current and potential content partners, advertisers, prospective executives and the media,” said Mr. Klepfisz. “The music industry is on the cusp of a major revamp and Qtrax will play a vital role in that. If you look at the simple fact that there were two billion iTunes songs downloaded since 2003, and compare that to analyst estimates that last year over 15 billion songs were downloaded for free with no artist or label compensation at all, it is obvious that new approaches like Qtrax are required. Our new site provides comprehensive information on Qtrax for partners, advertisers and the media and we welcome your inquiries.”
The Company also announced new license agreements with publishing heavyweights Universal Music Publishing and Sony/ATV Publishing and with V2 Music UK. “We have spent more than 3 years assiduously focused on negotiating the requisite licenses,” said Mr. Klepfisz. “The investment in time and resources has been worthwhile as we now enjoy the status of being the most comprehensively licensed new music model.”
The Company also featured in research reports from Generator Research, Jupiter Research and Equitis (with the Equitis report being commissioned by Brilliant). Generator Research’s founder, Andrew Sheehy, commented: “…if a service like Qtrax is successful, we would see the underlying business as an ideal acquisition target for companies like Yahoo!.” Jupiter Research’s Mark Mulligan, as reported in the Guardian, suggested that: “…shortfalls in CD revenue will be countered by sales of mobile music and experiments with new ad-funded services such as QTrax.” Founder and CEO of Equitis’ US Operations Kama Krishna said: “Qtrax offers a powerful new distribution platform for music companies – one that captures new revenue from the enormous pool of advertising money being spent online and at the same time satisfies the appetite of users who crave a different way to experience their music from the ways offered by existing paid digital music services. Importantly, Qtrax’s P2P platform does all this in a way that respects copyright and ensures everyone gets paid.”
In response to accelerating interest in Qtrax, Brilliant recently announced the launch of a new front page press room at www.blln.net, which provides convenient access to the large volume of press focused on the company.
About Brilliant Technologies:
Brilliant Technologies Corporation is a technology holding company devoted to research and development leading to commercialization of innovative, proprietary technologies. Through its subsidiary, LTDnetwork, Inc., the Company owns a range of cutting edge proprietary software designed to facilitate and enhance ecommerce. The Company is currently preparing for the launch of Qtrax, the company’s innovative P2P file-sharing service, and has already signed deals with Universal Music Publishing, Sony/ATV, Warner Music Group, The Orchard, EMI Music Publishing and EMI Music, TVT Records, Go Digital, ASCAP and BMI. The Company is based in New York, New York and Melbourne, Australia. For more information about Brilliant go to www.blln.net and about Qtrax to www.qtrax.com.
Safe Harbor
This announcement contains express or implied forward-looking statements which involve known and unknown risks and uncertainties that could cause actual results to differ materially from those suggested, including but not limited to risks identified and discussed in company filings with the Securities and Exchange Commission. These forward-looking statements are based on information and management’s expectations as of the date hereof and future results may differ materially from expectations and the company disclaims any obligation to update them except as required by law.
