FOR IMMEDIATE RELEASE:

VIRTUAL HIGHWAY - FIRST HIGH QUALITY INTERNET SHOWCASE FOR INDIE FILMS
GOES ON-LINE

BOON TO INDEPENDENT ARTISTS LOOKING FOR LOW-OVERHEAD DISTRIBUTION
CHANNEL TO REACH AUDIENCES

COLLECTION OF CLASSIC FILMS TO LAUNCH VIDEO-ON-DEMAND SERVICE

23 March, 2004 - Today, Virtual Highway, a Canadian start-up, launches
the first internet view-on-demand and subscription service that
showcases new independent films from around the world, and older,
high-quality "classic" (art-house) films. The service, called
"Independent Choice" opens with films by such directors as Eisenstein,
Dreyer, Murnau, Pasolini and Bunuel.

The brainchild of Vancouver-based film aficionados and hi-tech
professionals, Ed Folger and Ferdinand Ho, Virtual Highway's primary
goal is to help independent artists present their work directly to
their audience without the constraints imposed by conventional,
high-overhead distribution channels - there is no charge to indie
artists for this service.  In parallel, it caters to a niche audience
seeking films that may otherwise not be shown.

Ed Folger, co-founder of Virtual Highway and himself an independent
film director, said,  "Today, independent film producers are finding it
increasingly difficult to obtain distribution for movies. The massive
marketing of the blockbuster system has forced the smaller budget, more
thoughtful films out of the theatrical marketplace." Audiences for
these films and the historical 'classics' that have inspired modern
Indie filmmakers are finding it almost impossible to see these movies
in a theatre. Virtual Highway is the result of an outcry from both
producers and consumers for a better method of distribution.

According to Ferdinand Ho, Internet veteran and founder of Virtual
Highway, "Subscription video services are expected to grow from about
$900 million to $4.5 billion by 2007. The same demographic who use the
Internet for VOD - higher-income, better-educated households - are also
likely to be interested in Independent/Foreign/Classic films." Virtual
Highway offers a convenient service that allows subscribers to download
high-quality movies and view them on their computers or home
entertainment systems.

Films will be delivered as DVD quality encoded video on secure private
servers, encrypted and protected by DRM, and video watermarks. Users
download custom software, designed by ObjectCube, Inc, and register
with a username and password, which are required to view the films. The
software, allows users to download and manage their movie collection.

Initially, Virtual Highway will launch 16 films, with access to 1,800
more in the coming months. At US $4.99 per film, the viewer has 15
days' unlimited viewing, after which, the viewing period can be
extended by additional 15-day segments. Monthly subscriptions will be
available which will bring the cost to subscribers down to US $4.00 or
$3.00 per film.

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FOR FURTHER INFORMATION, PLEASE VISIT <http://www.vhighway.com>
TEL: (604) 988-4707; EMAIL: [log in to unmask]
<mailto:[log in to unmask]>;
FAX: (270)-837-5279

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