Commercial Pilot Finds SAFEAUDIO CD Protection Does Not Detract from Music Quality
NEW YORK--(BUSINESS WIRE)--Aug. 9, 2001--TTR TECHNOLOGIES, INC., a leading developer of digital anti-piracy technologies, today reported on developments at the Company during the second quarter of 2001.
Marc Tokayer, chairman and chief executive officer, commented, "TTR and our strategic alliance partner, Macrovision Corporation , made significant progress towards our goal of commercializing the SAFEAUDIO® copy protection system for audio CDs. All of the five major record labels are now in the process of evaluating SAFEAUDIO®. One label is in the midst of a major commercial pilot involving hundreds of thousands of discs and, we are pleased to report, has experienced no difference in return rates between SAFEAUDIO® discs and regularly issued, unprotected CDs. This result validates our goal of achieving the highest possible playability factor. The other major labels are also fully engaged in testing a solution to the CD piracy problem, and are in various stages of evaluating our product. In addition, we are continuing discussions with various independent labels that want to participate in field trials of SAFEAUDIO®. During the quarter we announced that SAFEAUDIO® copy protection technology has been adopted by the music industry's key CD encoder and testing equipment companies. This is a key infrastructure milestone that will allow for the rapid deployment of SAFEAUDIO® at CD manufacturing facilities globally."
Mr. Tokayer continued, "We are also pleased with the Company's progress in our other areas of business activity. We are working to leverage TTR's existing copy protection technology by developing a means of protecting against DVD-ROM piracy. We anticipate that we will have a product ready for demonstration to manufacturers by the fourth quarter."
Mr. Tokayer concluded, "ComSign Ltd, a 50% subsidiary of the Company, is also making progress in its business plan. ComSign is the exclusive Israeli marketer of VeriSign Inc.'s (Nasdaq: VRSN - news) digital authentication certificates for business, governmental and other entities that need to undertake secure transactions over the Internet. ComSign recently upgraded its status to a full VeriSign processing center and will become a non-VeriSign Issuing Authority within the VeriSign Public Certification Services. ComSign's existing service center has already delivered hundreds of Web certificates to customers and the company recently signed a number of pilot programs for Onsite Enterprise systems with major government
For the three months ended June 30, 2001, the Company reported an operating loss (not including non-cash stock based compensation charges) of $979,000 compared to an operating loss $1.07 million for the same period in 2000.
Cash and short-term investments at June 30, 2001 were $6.83 million. The Company had no long-term debt.
Conference Call Information
TTR will host a conference call at 9:00 a.m. Eastern Daylight Time today, August 9, 2001, to review second quarter developments. The dial-in number for the call is (212) 676-5627. A live webcast of the conference call will be available to all investors at the TTR Technologies web site located at www.ttrtech.com. The call will also be simulcast at www.vcall.com. For those who cannot listen to the live broadcast, an audio replay of the call will be available on these web sites for 90 days. A replay via telephone will be available until August 16 at 11:00 a.m. EDT and can be accessed by dialing 800-633-8284 (858-812-6440 outside the U.S.), reservation #19363267.
TTR Technologies, Inc.
TTR designs, markets and sells proprietary anti-piracy products. The company has developed and commercialized products for the software and entertainment industries and is expanding its product range and reach through in-house development and joint ventures. In addition to developing SAFEAUDIO®, TTR is investing in infrastructure and security solutions for the DVD market. TTR has a joint development and marketing agreement for music CD copy protection with Macrovision Corporation. The Company also owns 50% of ComSign Ltd., the exclusive Israeli affiliate of VeriSign, Inc.. TTR's shares are listed on the Berlin Stock Exchange (TEJ) and the Nasdaq National Market (TTRE).