Technology Update

20th Feb, 2001

Forbidden Technologies plc, which is creating new technology for video distribution over the Internet, is pleased to report continued progress in line with its stated objectives. The company's aim is to be recognised as the leading provider of video compression technology using its unique system which should ultimately enable any video material to be viewed on the Internet.

Since the interim report was published in September, the data compression rate has been improved by an average of around 2.5% per week. Playback is now achievable across a full range of home computers using a standard 56k modem.

The first product is now available enabling video playback over the Internet at high resolution, full frame rate and large screen size. Furthermore, the company has set up a new website at http://www.forbidden.co.uk/ including a demonstration video, using Forbidden's unique technology.

Stephen Streater, Chief Executive, commented:

"In September we expected we would have a product ready for market at the end of the year, and this is now available. Anyone who wants to make videos for their website using our compression technology can now contact us. In the mean time, our team continues to develop the technology further - day by day and week by week, taking us along the path to more and more complex video content.

As broadband stumbles with the reported 97% cut in Government spending, the significance of our technology, which does not require broadband, becomes more and more apparent."