NME To Exhibit HD VMD Available For All Popular Video Formats At The Marche Du Film Of The Cannes Film Festival, Riviera Hall - Stand B6

May 15, 2006

New Medium Enterprises Inc. (OTCBB:NMEN) (NME) will exhibit HD content on HD VMD at the world's most prestigious film festival in Cannes, France from May 17 to May 27, 2006. Further to the Company's very successful recent consumer electronics exhibition at CeBIT in Germany, NME continues their strong campaign with their presence at the Marche du Film, the largest content trade & distribution component of the festival. The Marche du Film is indeed the world's biggest "market-place" where motion-pictures are bought, sold and negotiated. Motion-pictures and content on the HD VMD standard create yet another means of revenue for content distributors, international sales agents and producers who will be numbering around 10,000 and hailing from more than 80 countries at this year's festival. Knowing that VMD is the only low-cost High Definition Solution for the international motion-picture trade further reinforces NME's goals of the "Home Video" and "Home Entertainment" divisions of distribution companies to adopt VMD as their HD content medium. HD VMD will be available to content providers for all popular video formats including MPEG1, MPEG2, XviD (MPEG4), DivX (MPEG4), H.264 (MPEG4), VC-1 (Windows), MP3, WMA , and DviD. The VMD technology will be on display in the Riviera Hall, Stand B6 where motion picture and content distributors may apply to adopt the HD VMD as their High Definition medium around the world. About New Medium Enterprises, Inc. (NME): HD VMD is the only low-cost true High Definition solution. It utilizes today's red laser DVD Technology and its industrial infrastructure. The HD VMD platform is meant for 1920X1080i/p High Definition up to 40 Mb/s bitrate playback using its 20 GB - 40 GB red laser optical discs. The HD VMD players & burners, stand alone and computer embedded are inherently backward compatible with DVD and CD. This is the only low-cost, high-end offering to the discerning consumer at market prices in the range of prevailing DVD players, burners and discs. For additional information about NME, please consult the Company's website at: http://www.nmeinc.com. For additional information about the Cannes Film Festival, please consult its website at: http://www.festival-cannes.org/

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