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Flix on Stix Gets Ready to Rock and Roll

Flix on Stix announced that the company plans to begin a national roll out of its digital content delivery kiosks within the next 90 days.

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Unedited press release follows:

Flix on Stix Announces Deployment of World’s First Studio-Controlled System to Securely Provide Movies, Music and TV Shows From a Self-Serve Kiosk Direct to Portable Flash Drives

Company Recently Received the “Highest Grade” Security Certification

CORONA, CA–(November 23, 2010) – Flix on Stix announced today that their breakthrough proprietary system that securely delivers digital entertainment content has received the highest level of security certification, and that the company will begin a national roll out of their specially designed kiosks within the next 90 days.

Flix on Stix has developed a revolutionary encryption technology and interface, designed to allow consumers to download movies, music, and television programs from a self-serve kiosk to a portable memory stick. In addition to offering an almost limitless array of titles, this unique system also provides first-run movies well before they are available on DVD or Blu-ray, through internet subscription services or vending machines.

The Flix on Stix Kiosk utilizes a secure internet connection and proprietary download encryption technology to transfer content onto any portable flash drive in a matter of seconds. The digital content can be viewed on any PC or Mac, or through a set-top box to a television.

The Flix on Stix patent-pending encryption technology is the first of its kind to provide end-to-end security — from the studio through to the consumer. Moreover, the Flix on Stix system is the world’s first and only method that allows the studios to completely control the transfer and distribution of their content in a secure, real-time environment.

For consumers, the system is ingenious because it is untethered and totally portable — so they don’t need an internet connection. Plus, it eliminates the need for returning an item to the store or to the DVD vending machine. And there are never any late fees because the customer can choose how long they wish to keep each title — from one day to forever, and at the expiration date, the title simply disappears.

For studios, the Flix on Stix system is a true breakthrough. Now for the first time, the studio can securely upload whatever titles they choose, remove any titles at a moment’s notice, and receive instant, real-time, secure and accurate reports on sales and rentals. And with the new Flix on Stix encryption technology, piracy becomes virtually non-existent.

Flix on Stix was started several years ago by a group of engineers and entrepreneurs who saw the need for a more user and environmentally friendly method to deliver movies and entertainment programming to consumers.

“We looked at all the ways that people were obtaining content, and studied the problems inherent in each system,” according to Robert Bienias, Flix on Stix Managing Partner. “For example, renting movies from a source such as chain store or a vending machine requires that customers return the items, and face potential late fees. Plus, there can be frequent out-of-stock issues, and in the case of the vending machines, there is a very limited selection that can be stocked into the unit.”

The company also studied the Internet based model, which either requires the customer to continually return DVDs in the mail, or use a computer to order and/or view selections.

The engineers at Flix on Stix solved those problems by developing new encryption technology and designing a compact, yet attractive kiosk (about half the size of the DVD vending machine), which allows for easy placement in virtually any location. The unit’s graphics are enticing and encourage consumer use. There are no late fees, and since content is downloaded to a small flash drive or memory stick, it is completely portable — allowing the consumer to view the content on whatever device they desire.

Research has shown that consumer acceptance will be high. A recent survey of movie rental consumers shows that 65% identify themselves as digital users familiar with downloading content.

The Flix on Stix Kiosk also appeals to retailers. “DVDs and Blu-rays can be easily stolen or damaged, which is why our system will not only appeal to consumers, but to retailers as well,” Bienias commented. “The Flix on Stix system allows retailers to offer a virtually unlimited selection of titles, with no shelf space or shrinkage.”

The Flix on Stix patent-pending encryption technology was recently certified by Dieko Corporation, a leading independent IT security company. Dieko co-founder and security chief Benjamin Huey is a noted expert in the industry and has developed IT security protocols for many Fortune 500 corporations, government agencies, banks, and technology companies. Huey led the Dieko team and completed a 6-month long analysis and refinement of the Flix system so that it is 100% secure at every point of the distribution. Even in the remote instance that an entire kiosk is stolen, the content is 100% secure. Not only is all content dual-encrypted, but the system becomes permanently locked at the moment of disconnection from the main server. Furthermore, each system has a GPS locator device built-in so that it will be quickly and easily recovered.

Dieko further certified that the Flix on Stix encryption technology exceeds the most stringent federal compliance standards — a first in the entertainment industry.

Flix on Stix has partnered with AVT, Inc. (AVTC), a leading manufacturer of automated retailing systems, to build the units. AVT founder Shannon Illingworth stated, “We are thrilled to have been selected the manufacturer of choice by Flix on Stix. We have worked closely with them in the design and development stage, and are now gearing up to meet their rollout schedule.”

Flix on Stix plans to place their kiosks in malls, grocery stores, airports, hotels, and other high-traffic areas. Initial projections are for 20,000 units to be deployed within the next year.