ClearPlay Settles Nissim Lawsuit; Licensing Arrangement Reopens Door to Consumer Electronics Integration

SALT LAKE CITY--(BUSINESS WIRE)--Nov. 30, 2005--After 18 months of litigation, ClearPlay Inc. has resolved its patent dispute with Nissim Corporation. As part of a settlement agreement, ClearPlay has agreed to license certain patent rights from Nissim, and both ClearPlay and Nissim have dismissed all claims against each other.

ClearPlay is the leader in parental control technology for consumer electronics. The company has been impacted by litigation for the past three years -- first from Hollywood over copyright issues and most recently the Nissim patent lawsuit. All Hollywood claims were dismissed in August 2005 as a result of the Family Movie Act. With this Nissim settlement, the company is free and clear of any legal entanglements for the first time since 2002.

ClearPlay's movie product filters violence, sex and profanity from DVD movies. Prior to the Nissim litigation, it was introduced as a feature on RCA players and carried in Wal-Mart and other retailers. Despite extensive press coverage and very positive consumer reaction, the RCA product was temporarily halted due to the lawsuit, although ClearPlay has continued to market its feature under other brands.

"It is great to have this behind us," said ClearPlay CEO Bill Aho. "There has been a tremendous amount of pent-up demand, and we look forward to featuring ClearPlay in a variety of consumer electronic products in 2006, including DVD, PVR and cable and satellite set-tops."

In addition to ClearPlay for movies, the company will also launch ClearPlay TV in 2006. ClearPlay TV filters offensive language from broadcast television and can be implemented in TVs, set-tops or as a standalone device. ClearPlay TV's technology is substantially different and vastly superior to early entries in the market.

About ClearPlay

ClearPlay Inc., incorporated in 2001, develops advanced parental control technologies for consumer electronic products, including DVD players and recorders, TVs, cable and set-top boxes, digital video recorders, etc. ClearPlay DVD players and Filters can be purchased at retail outlets and at www.ClearPlay.com.