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Deployment Demonstrates New Method for Content Providers to Promote VoD to Select Audiences Through Distribution of Low-Cost Media Center Hardware FORT LAUDERDALE, Fla., Jan. 21 /PRNewswire-FirstCall/ -- Video Without Boundaries(TM), Inc. (OTC Bulletin Board: VDWB) with its MediaREADY(TM) 4000 convergent digital media center device, and the Hardware designer and manufacturer Lung Hwa Electronics Co. Ltd. (TSEC: 2424) today announced they have entered into an agreement of a $1,000,000 licensing deal that will place MediaREADY's Operating System in a new, scaled-down version of VWB's MediaREADY 4000. This agreement also leverages a contract by Lung Hwa and one of China's largest public education ministries, and also heralds a new and novel distribution strategy for Internet-based Video-on-Demand (VoD) content providers. Licensing of the MediaREADY Operating System to 3rd party OEMs is part of a joint venture between VWB and CAC Media. Lung Hwa Electronics' licensing agreement with VWB will allow it to supply MediaREADY series products to the TAIWAN EDUCATION SYSTEM, the administrative body that oversees primary and secondary schools in China. The TAIWAN EDUCATION SYSTEM plans to place one of the MediaREADY Series 400 products in each school for the purposes of providing continuing video education courses to teachers. The MediaREADY series products will ship with a library of MPEG-4 high-quality Video courses, and the units will synchronize its library and automatically download new courses over the Internet utilizing the MediaREADY Remote File Synchronization Module. The second phase of deployment is expected to begin Q3 2004, whereby the TAIWAN EDUCATION SYSTEM will extend and promote this program to the students of its schools, with deployment of 100,000 units within the first 12 months. The MediaREADY 400 is the value-priced sibling to VWB's MediaREADY 4000 convergent Internet/DVD player. Like the MediaREADY 4000, the MediaREADY 400 consumer set-top unit connects to any television and offers feature-rich TV as well as convergent entertainment/communications functions like email, web surfing, MPEG-1/MPEG-2/MPEG-4/MP3 playback and more. Slightly smaller than the MediaREADY 4000, the MediaREADY 400 differs only in the lack of a DVD player. LHE's agreement demonstrates how deployment of media playback hardware can facilitate the use of VoD and Video-over-Internet Protocol content. Although Education and corporate audiences are likely to be the first to benefit from this strategy, VWB is excited to offer this technology to our current content providers to deliver high-quality music and movies to all MediaREADY devices. Manufacturing Partner Lung Hwa Electronics (LHE) manufactures both the MediaREADY 4000 and 400 under contract for Video Without Boundaries; in addition, LHE is authorized to sell MediaREADY powered products directly to retail and corporate customers worldwide. "By extending the MediaREADY Operating System to the TAIWAN EDUCATIONAL SYSTEM, this enables teachers to achieve their training goals of school e-learning systems," added Peter Pai, Chairman and CEO of Lung Hwa Electronics. "This is an exciting deployment that demonstrates the increasing value and viability of Internet-based VoD and one-way video distribution using next-generation hardware." "The MediaREADY 400 is an ideal enabler for content distribution due to its low cost and advanced technology," said Jeffrey Harrell, President of Video Without Boundaries, Inc. "With The MediaREADY 400, content can be updated or synchronized easily and cost-effectively. As seen from our sales activity at CES, we believe this education deployment is the beginning of a broad new range of enterprise-class uses for our products, not only in China, but also in the U.S. and elsewhere." VWB's MediaREADY 4000 is expected to reach U.S. retail shelves in early February, 2004. A formal announcement for the MediaREADY 400 will be made by VWB in the U.S. in coming days. Strong Growth According to In-Stat/MDR, an industry research group, professional Video-over-Internet Protocol (IP) services will exhibit a Compound Annual Growth Rate (CAGR) of 45.3% between 2003 and 2007. Estimates point to a worldwide market of $2.2 Billion (USD) in 2007. In-Stat/MDR's just-released report, "Professional Video Services Over IP Networks - Ethernet & IP Creep Into The Broadcast Industry," states that North America will be the strongest overall regional market for Professional Video- over-IP Services during this period. "Store & Forward" Content Delivery Networks (CDNs) used by corporations to deliver streaming video services are expected to experience a strong CAGR of 36%. VWB have embraced the content provider movement via their MediaREADY Content Partner Program, an effort designed to increase potential revenue from distribution of MediaREADY units. A number of leading providers have already signed on, including Blastro, Live 365, INgrooves, VegTv, and Adventures in OZ. The MediaREADY 4000 Interactive DVD Player is also one of the first Linux-based consumer electronics devices to embed RealNetworks' Helix(TM) DNA Client, the media engine powering the RealNetworks' RealPlayer. About Video Without Boundaries: Video Without Boundaries (OTC Bulletin Board: VDWB) is a leader in the converging digital media on demand, enhanced home entertainment, and emerging interactive consumer electronics markets. VWB is focused on home entertainment media products and solutions that enhance the consumer experience, while providing new revenue opportunities for online music and movie content providers. VWB, and its subsidiaries, are leading suppliers of broadband products, services and content including its ability to deliver broadcast quality digital video and web interactivity at transfer rates as low as 56K. Website: www.vwbinc.com. About Lung Hwa Electronics: Lung Hwa Electronics Co. Ltd., established in 1973, is a public company listed on the Taiwan Stock Market (TSEC: 2424) with a current market capitalization of $28 million (USD). Lung Hwa, an ISO 9001 certified manufacturer, consistently provides the most qualified professional products to the market and has become one of the leading 3C manufacturers in Taiwan. Foreseeing rapid business growth, Lung Hwa invested in a new factory, Expert Electronics (Wujiang) Co. Ltd., in Shanghai, China. The 45,000-square-meter factory produces 600,000 PCBA pieces and 200,000 Box Build sets each month. The huge capacity of the China factory enables Lung Hwa to bring to market more cost-effective products. With 30 years of innovation, Lung Hwa is expanding its product lines into two categories: EMS (Electronics Manufacturing Services) and DMS (Design Manufacturing Services). Lung Hwa's vision, "Customer Satisfaction is Our Greatest Achievement," allows it to reach the zenith of professional manufacturing standards, providing more reliable products and timely delivery in the worldwide market. Yet Lung Hwa still remains very flexible and has adopted a non-compete policy to mutually benefit OEMs who join in long-term partnership. For more information about Lung Hwa Electronics Co. Ltd., visit www.lunghwa.com.tw. Forward-Looking Statements: Forward-looking statements and comments in this document are made pursuant to the safe harbor provision of Section 21E of the Securities Exchange Act of 1934. Such statements relating to, among other things, the prospects for the company to increase the level of sales, maintain current sales levels, add new products and services and develop new Web sites are necessarily subject to risks and uncertainties, some of which are significant in scope and nature, including risks related to the demand for the company's products and services competition, and availability of capital. MediaREADY is a trademark of Video Without Boundaries, Inc. All other trademarks or registered trademarks are the property of their respective owners. VWB CONTACT: Katie Eakins S&S Public Relations, Inc. Tel: (858) 549-0581 katie@sspr.com This release was issued through eReleases(TM). For more information, visit http://www.ereleases.com. SOURCE Video Without Boundaries, Inc. -0- 01/21/2004 /CONTACT: Katie Eakins, S&S Public Relations, Inc., +1-858-549-0581, katie@sspr.com, for Video Without Boundaries, Inc./ /Web site: http://www.lunghwa.com.tw / /Web site: http://www.vwbinc.com / (VDWB) CO: Video Without Boundaries, Inc.; Lung Hwa Electronics Co. Ltd.; In-Stat/MDR; Taiwan Education System ST: Florida, Taiwan IN: CPR HRD CSE MLM OTC SU: LIC CON PDT SVY ECO

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