New Visual Moves to Commercialize Embarq(TM) -- Enters into Amended Agreement with Adaptive Networks; $5 Million Contribution to Profits Foreseen -- SAN DIEGO, Calif., Jan. 18 /PRNewswire-FirstCall/ -- New Visual Corporation (OTC:NVEI) (BULLETIN BOARD: NVEI) , an emerging provider of semiconductors to the broadband telecommunications industry, announced today that on November 26, 2004, the Company entered into an amended development and licensing agreement with Adaptive Networks, Inc. (ANI), experts in communications products. Under the Amended Agreement, ANI is waiving its right to receive the first five million dollars in royalty payments that it would otherwise be entitled to. ANI has provided New Visual with final delivery of the source code, the intellectual property rights and other materials that make up Embarq(TM). With the original agreement dated April 17, 2002, New Visual acquired a worldwide, perpetual license to ANI's PowerStream(TM) technology. The Agreement also called for New Visual to define, pay for, and jointly co-own significant enhancements to this technology. Together, PowerStream(TM) and its enhancements provide the core technology for New Visual's semiconductor technologies, known as the Embarq(TM) family of transport processors. Embarq(TM) allows telephone companies to transmit data at greater speeds and over extended distances across a single pair of copper wires than other commercially available technologies. The high-speed technology will significantly enhance the telcos efforts to serve high-definition (HDTV) signals, voice over internet protocol (VoIP), and high-speed internet to homes and small businesses. Dr. Michael Propp, Founder and President of ANI stated, "ANI has invested more than 20 years and more than ten million dollars toward the development of this powerful technology. We are pleased to benefit from New Visual's expert management team to commercialize it for the global DSL marketplace." President and Chief Executive Officer of New Visual Corporation Brad Ketch stated, "Embarq(TM) is out of the development starting gate and is now entering its exciting commercialization phase. Our new partner, HelloSoft, has begun the work that we believe will deliver Embarq(TM) to market." About Adaptive Networks, Inc. Based in Boston, Massachusetts, Adaptive Networks is a leading developer of enabling high-speed powerline networking technology. Using patented technological advances, the technology offers such features as multi-megabit speed, integral support for QoS, multiple-node home-wide connectivity, and low cost. With these features, the diverse requirements of applications such as multimedia (streaming audio & video including broadcast and multicast), telephony, high-speed Internet access sharing, and PC networking can all be satisfied. Adaptive's lower-speed commercial/industrial powerline communications technology, on which the high-speed version is based, was selected by the International Standards Organization as the standard for powerline communications aboard refrigerated container ships for the monitoring of perishable cargo. It has also been selected by the IEC for its standards for automated meter reading. Adaptive's technology is recognized for meeting the strict criteria for reliability and speed of response required by such applications as factory automation and credit card transactions. For more information, visit http://www.adaptivenetworks.com/. About New Visual Corporation Based in San Diego, California, New Visual Corporation is a late- development-stage fabless communications semiconductor company. New Visual is developing an advanced technology that allows data to be transmitted at greater speed and across extended distances over existing copper wire. For more information, visit http://www.newvisual.com/. With the exception of historical information contained in this press release, this press release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, including but not limited to the following: product development difficulties; market demand and acceptance of products; the impact of changing economic conditions; business conditions in the Internet and telecommunications industries; reliance on third parties, including potential suppliers, licensors, and licensees; the impact of competitors and their products; risks concerning future technology; and other factors detailed in this press release and in the company's Securities and Exchange Commission filings. New Visual is under no obligation to revise or update any forward looking statement in order to reflect events or circumstances that may arise in the future. For more information contact: At the Company New Visual Corporation Brad Ketch, 619-692-0333 Or At OTC Financial Network Rick McCaffrey Investor Relations 781-444-6100 x621 DATASOURCE: New Visual Corporation CONTACT: Brad Ketch of New Visual Corporation, +1-619-692-0333, ; or Investor Relations, Rick McCaffrey of OTC Financial Network, +1-781-444-6100, ext. 621, Web site: http://www.adaptivenetworks.com/ http://www.newvisual.com/

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