ClearPlay Raises $1 Million in Private Placement

Funding will cover legal costs of Nissim litigation.

Salt Lake City, January 4, 2005 – ClearPlay Inc., the leader in parental control filtering technology for movies, has secured a round of funding to cover the legal costs necessary to defend its technology from frivolous patent litigation. Half of the round filled within the first two weeks of the offering, with the balance expected to close in January.

ClearPlay has been the target of a Florida company which has claimed patent infringement. The suit is expected to continue into the latter half of 2005. “ClearPlay technology works on fundamentally different principles than those claimed in Nissim’s patents. We simply do not infringe.” stated ClearPlay CEO Bill Aho. “In fact, we think it is unlikely that the patents Nissim has asserted will even be found applicable to DVD technology. We look forward to seeing this case to its conclusion.”

The private placement was made only to institutional and accredited investors in a transaction exempt from the registration requirements of the Securities Act of 1933, as amended.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities

About ClearPlay:

ClearPlay develops advanced parental control technologies for consumer electronic products, including DVD players and recorders, TV’s, cable and set-top boxes, digital video recorders, etc. The company’s first product allows consumers to view DVDs, purchased or rented through conventional retailers, free of unwanted content. It gives consumers the ability to skip and mute over graphic violence, sex, nudity and profanity as desired. ClearPlay can be purchased at selected retail locations and at the company website at www.clearplay.com.