Digital Valley and Spectra Systems Produce First Optical Discs with Play Side Messaging

Providence, R.I. - October 26, 2004 - For the first time ever, the play side of optical discs will carry text and graphic images. MediaCoat™, the breakthrough system from Spectra Systems Corporation, allows for the application of high-resolution graphics, text, alpha-numerics and barcodes on the play side of discs. Digital Valley, one of Europe's technology leaders in media replication, is producing the first MediaCoated discs using equipment from Singulus Technologies AG, proprietary MediaCoat materials from Spectra Systems Corporation and Advanced Reproductions Corporation's photo-masks. Vidéo Futur, France's largest DVD rental franchise will be Digital Valley's first customer to MediaCoat their logo on the play side of their discs.

MediaCoat unlocks the potential for placing targeted advertising messages that are certain to be noticed on the play side of motion picture, music, gaming and software discs. For the first time, artists and recording studios will be able to mark both sides of the DVD Plus and DualDisc formats with pictures, text and graphics. In addition to providing pictures and words for discs, MediaCoat has been found to improve the durability of discs, creating superior scratch resistance. MediaCoat is compatible with all pre-recorded optical media formats and industry specifications, including DualDiscs, DVD Plus, and all CD and DVD formats.

The MediaCoat system consists of Spectra Systems' proprietary formulations for disc coating, Singulus Technologies MediaCoat module equipment designed for seamless machine integration, and Advance Reproductions' high quality quartz photo-masks for capturing images and placing high resolution images, graphics and text on the discs.

Spectra Systems will sell proprietary MediaCoat coatings and licensing opportunities to Digital Valley and Singulus Technologies will supply replication machines modified for MediaCoat application on both DVD Plus discs and other CD and DVD formats. Dr. Nabil Lawandy, Spectra's CEO, said, "Digital Valley represents the ideal first adopter of this technology as they have already demonstrated the ability to successfully market new disc technologies. MediaCoat now allows for full labeling on each side which will be much more favorable to recording artists and consumers. Along with labeling, MediaCoat creates an array of new opportunities for content owners including advertising and marketing on the previously unused play sides. We are excited to see what further opportunities this cutting-edge technology will inevitably bring to Spectra."

Mr. Al Fetouhi, President of Digital Valley, commented on the relationship saying, "We are very excited to have a new play side feature that adds further value to our existing products and offers our customers full labeling options and unique marketing capabilities, particularly for double sided media where no alternatives exist today."

About Digital Valley

Digital Valley was the first replicator in Europe to produce DVD Plus discs commercially. Now in high demand, DVD Plus discs are being manufactured exclusively by Digital Valley at their manufacturing plant in Val de Reuil, France.

Originally a VHS duplicator, Digital Valley produced their first DVD discs in September 2003. A solid base of quality products coupled with a strong management team and the courage to develop innovative production processes, Digital Valley has grown rapidly in the last year to become a significant player in the European market.

For more information about Digital Valley visit: www.digitalvalley.fr

About Spectra Systems

Spectra Systems Corporation, headquartered in Providence, RI is a market driven company that is changing the way businesses mark, sense, track and authenticate their products from production line to point of purchase. Its cross-platform technologies, based on advanced materials and proprietary hardware and software systems, offer an integrated approach that provides customers with complete solutions.

For more information about Spectra visit: www.spsy.com

Contact:
Spectra Systems Corporation
Scott Tillotson
Phone: 401-274-4700
stillotson@spsy.com

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