Pervasys and Lone Star Studios Partner with Quick Feather Productions on a Five Picture Deal


LOS ANGELES, August 1, 2001 (PRIMEZONE) -- Pervasys, Inc. (Pink Sheets:PVYS) announced that it has entered into a five picture production and distribution deal with Quick Feather Productions. Pervasys Chairman and Lone Star Studio CEO Martin Halfon (Pervasys' first partner for Convergence Studio applications) are already in discussions about attaching their more than 50,000 square feet of production stage facilities to the package.

Quick Feather Productions is dedicated to becoming a high quality, high profit producer and distributor of film, television and multimedia properties that glorify the human spirit by communicating family values, based on Michael Criscione's vision of quality entertainment for the family and youth-oriented special interest markets. Quick Feather is committed to providing progressive and enlightening and spiritually nourishing entertainment to the underserved family market with product featuring values, quality and integrity.

Quick Feather's first production, "One Chance," is tentatively scheduled to start filming late Fall. The development of the screenplay has been supervised by Criscione and Pervasys President, Michael Meyer. Criscione (as a producer, executive producer, line producer, creative participant and sales agent) and Meyer (as a producer, line producer, director, writer, editor and sales agent) have jointly participated in and supervised the development, pre-production, principal photography and marketing of a number of feature films.

In addition to participation in the development, production and marketing of the entire 5-film production package, Pervasys will handle all digital distribution rights in the film, focusing on several revenue models to generate income from Internet broadcast. During the initial videocassette release window, Pervasys will stream the pictures on a "pay-per-view" basis, using its proprietary FeLIX technology. During a second window, the pictures will be streamed on a "subscription basis," in the same way that pay subscription channels currently charge for cable television. Thereafter, the pictures will be available on advertising-oriented Web pages. Instead of commercials, the area around the 320 X 240 pixel window will be marketed as advertising space.

Pervasys Chairman Michael Meyer feels that this is a strong move towards his concept for the "Convergence Studio." "While our technology is very strong, we feel that our six years of experience in distribution of content make us an ideal partner to participate in digital content distribution. Companies such as Quick Feather recognize our unique value as the partner for distribution of their productions in digital and Internet format. We welcome the opportunity to become more involved in the established distribution venues (theatrical, foreign sales markets, VSDA, etc.) for the proven formats (videocassette, cable and free television, etc.). We believe that greater access to traditional film markets will simplify the process and increase market awareness, which should help us in acquiring and partnering increased content for ultimate distribution on the Internet."

Quick Feather President Michael Criscione notes, "I've worked with Michael Meyer in film production and distribution since 1991, and I welcome the opportunity not only to work with him again, but also to take advantage of the wealth of knowledge and experience that he has acquired about Internet promotion and content distribution. Pervasys has some very interesting ideas about using the Internet to promote films during pre-production. The executive producers will all have the opportunity to monitor every aspect of the film during pre-production and principal photography using Pervasys' remote viewing capability. We will be showing some live video of the set, while we are actually shooting the films. We will have live interactive press conferences with our stars on the Internet starting with pre-production, and running right through the pictures' release. We can embed the live video from the set in emails, and allow people to open their email and watch our movies while they're being made. The possibilities are fantastic.

"The greatest obstacle to independent film productions has been to attract the advertising, marketing and promotion money necessary to garner significant main stream market attention. We hope to brand our offerings at a price substantially below that which has stifled the independent market in the past. Moreover, using Pervasys technologies we can affordably form creative, interactive atmospheres to generate and retain fans and supporters prior to the release of a film. With our orientation to family audiences, we hope to be able to create Web sites that nurture a positive environment. Since everybody in our production group has a special appreciation, sensitivity and respect for family values, we will have the opportunity to imbue our little corner of the Internet with an appreciation for the human spirit and higher values. This sensitivity, combined with knowledge, responsible management, proven business skills and innovative digital marketing techniques should give us an opportunity to create profitability and enduring success in the family entertainment industry.

"Maybe not this year, but I believe that in the next two or three years, Internet distribution of movies will become a very significant market, and that the Internet is already a significant marketing tool. The innovation I have seen at Pervasys makes me feel that there can be a very positive future for the Internet."

Filming at Lone Star would afford Quick Feather built-in access to the digital broadcast capabilities being installed on their four stages. In less than a year since opening, Lone Star Studio has already played studio host to Warner Brothers, Columbia Pictures, Sony Entertainment and New Line Pictures.

Further information on Pervasys products can be obtained on www.pervasys.com, or by contacting:

Michael Meyer (U.S.) 1-323-571-3717, 1-818-365-1957, mike@pervasys.com Brian Sammartino (Canada), 1-604-732-1291, brian@pervasys.com Chan Son Jeon (Korea), 02-698-1279

For Financial Relations contact Glen Chazak, DeBenn Capital, 1-310-285-4602

Statements included within this press release that are not historical in nature constitute forward-looking statements for the purpose of the safe harbour provided by the Private Securities Litigation Reform Act of 1995. Investors are cautioned that this press release contains certain such forward-looking statements that involve substantial risks and uncertainties. When used, the words "anticipate," "believe," "estimate," "expect" and similar expressions as they relate to the Company or its management are intended to identify such forward-looking statements. There can be no assurance that the Company will be able to market, sell or deliver successfully its services inside or outside the United States, given risk factors including but not limited to unexpected changes in regulatory requirements, export restrictions, tariffs and other trade barriers, challenges in staffing and managing foreign operations, differing technology standards, employment laws and practices in foreign countries, longer payment cycles, problems in collecting accounts receivable, political instability, fluctuations in currency exchange rates, imposition of currency exchange controls, seasonal restrictions in business activity and potentially adverse tax consequences, any of which could adversely affect the Company's international operations. There can be no assurance that one or more of these factors will not have a material adverse affect on the Company's current or future international operations and consequently, on the Company's business, results of operations and financial condition.



            

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