Unlocking Technology for the Multi-Billion Dollar Digital ContentMarket (adv)

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STOCK 
        PROFILE

      
Cipher 
        Multimedia, Inc.

        Symbol OTCBB: CIHR

        Shares Outstanding: 18,816,811

        Float (Estimate): 2,600,00

        

        CIHR: Cipher Multimedia, Inc.

        "Unlocking" Technology for the Multi-Billion Dollar Digital 
        Content Market

        

        The digital market for 
        video, software, audio, and institutional content has experienced exponential 
        growth. The Aberdeen Group predicted that digital content distribution 
        will grow from $1.33 billion in 2000 to $5.9 billion by 2005. CIHR, 
        with its proprietary "digital wrapper" technology has devised 
        a revolutionary method for content providers to mass market, protect, 
        and deliver product to a target/consumer market. CIHR 
        recently went public and is poised to grow and prosper in this 
        multi-billion dollar digital content distribution market.

      
UNIQUE TECHNOLOGY

        CIHR has devised an innovative 
        method for delivering video content to targeted consumers. Utilizing their 
        unique "digital wrapper", CIHR enables 
        content providers to place additional video content on the unused portion 
        of a DVD. The additional content can be purchased and viewed by placing 
        the DVD in a PC and unlocking the content via online payment. The consumer 
        can then view movies, videos, or participate in related games or merchandising 
        offerings on their personal computer.

      
EXAMPLE:

        Amazon.com has shipped the DVD The Godfather to Mr. Smith's home. He views 
        The Godfather, but then learns he may view The Godfather II on the very 
        same disc. He places the DVD in the computer and follows the easy to use 
        instructions on how to purchase The Godfather II online. After the online 
        transaction is complete, Mr. Smith has unlocked the content and can now 
        view The Godfather II from the very same DVD. Proceeds from this targeted 
        "upsale" are shared between Amazon.com, the publisher, and CIHR.

      
RECENT NEWS AND DEVELOPMENTS

        March 29, 2004 - (BUSINESS WIRE) -- Cipher Multimedia (Cipher Holding 
        Corp: CIHR) is pleased to announce an 
        agreement with a leading instructional hockey video publisher , Turcotte 
        Hockey.

      
March 16, 2004 -- (BUSINESS WIRE) -- Cipher Multimedia (Cipher Holding 
        Corp: CIHR) on Monday said it signed an 
        agreement with independent film publisher Dream World Productions to include 
        additional locked video(s) on all Dream World DVD releases.

        

        CORPORATE SNAPSHOT

        Cipher Multimedia, Inc. (OTCBB: CIHR) 
        is a Delaware Corporation headquartered in Oak Brook, Illinois. CIHR 
        is a digital distribution solution company, securing and allowing access 
        to digital content through proprietary encoding, encryption, and authorization 
        technology. CIHR enables publishers, distributors, 
        advertisers, and direct marketing companies to generate revenue from innovative 
        and direct marketing campaigns. 

      
MARKET POTENTIAL AND STRATEGY

        CIHR's initial focus is campaigns with 
        publishers and distributors that mass market and deliver secured full-featured 
        video content through existing channels. Cipher's targeted partners include 
        major and independent film studios, monthly magazines, online & offline 
        stores, ISP's, and digital content direct marketing companies. CIHR's 
        mass distribution campaigns allow publishers, retailers, and CIHR 
        to share in revenue generated from the purchase of locked digital content. 
        CIHR is the only company that can deliver 
        digital content as an introduction/promotional piece with complete product 
        fulfillment in that same piece of media.

      
FINAL CONSIDERATIONS

      
· CIHR management expects the 
        Company to be profitable in its first full year of operations.

      
· CIHR maintains an extremely 
        low overhead, and enjoys net margins of up to 50% and above.

      
· CIHR is the only company that 
        secures digital content creating a unique identification code from the 
        components of a consumer's PC

      
· The digital content distribution market is expected is expected 
        to grow to $5.9 billion in 2005.

      
· CIHR projects gross revenues 
        of up to $15,506,640 on an upcoming promotional campaign planned with 
        a major publisher.

      

      
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