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Appeared on: Wednesday, July 25, 2001
Profilo Telr and C3D Sign Preliminary Agreement for the Incorporation of C3D's FMD Technology Into Profilo's Television Sets and Digital Video Recorders

Constellation 3D and Profilo Telr announced today Profilo's intention to incorporate C3D's technology in its next generation televisions and digital video recorders (DVRs).

Profilo estimates that 50% of the TVs it manufactures shall incorporate FMD devices by 2003, increasing to approximately 65% by 2005.

It is expected that the FMD WORM & ROM devices to be incorporated into Profilo's TV sets will initially have minimum storage capacities of 25 Gigabytes and read/write speeds of up to 20 Mbit/sec and 10 Mbit/sec respectively. It is anticipated that the consumer FMD players will be compatible with DVD ROM. The next generation of FMD devices should have double the capacity and twice the write speed as compared to initial models, in order to satisfy the requirements of High Definition TV.

Profilo Telr@ is a part of Profilo Group with sales approaching $2 billion in 2000. Profilo Telr@ is one of the largest manufacturers of televisions and consumer electronics in Europe. Profilo Telr@ produced 1,800,000 televisions in 2001, which is forecasted to grow to 2,500,000 - 3,000,000 units for 2003. The company sells its televisions under its own brand name as well as others.

Dr. Eugene Levich, Chairman and CEO of C3D stated, "Profilo's European market strength and its willingness to be an early adopter of FMD technology for its new generation of televisions and digital video recorders is a significant indication of the world wide market potential for FMD technology in the consumer electronics market. This agreement represents the first large scale commercial application for utilizing Constellation's unprecedented removable data storage capacities.''

Mr. Farzad Kuchani, President of Profilo Telr@ stated, "The opportunity to adopt C3D's FMD into our product line should help Profilo secure and expand its market share in the high definition television and digital video recorder markets. With C3D's anticipated ability to record high definition television and digital cinema, our early commitment should give us a competitive edge in the consumer electronics marketplace. We look forward to the joint effort associated with commercializing and introducing such an exciting technology.''

In a June 2001 report, the Yankee Group projected the United States alone to have an installed base of 20 million DVR units by 2005. One clear hurdle to market acceptance of Digital Video Recorders has been the lack of inexpensive removable, archival storage for these hard disc drive-based units. The high capacity offered by removable FMD media in conjunction with hard discs is anticipated to meet those requirements.


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