US Stock Market - Stock Profile of the Week

Symbol: CYPM Market: OTCBB Sector: 3D Animation

BREAKING NEWS - CYPM Acquires Profitable Joongang Movie Entertainment...CYPM To Compete With Pixar & Disney

NEW YORK---PRIMEZONE---Cyper Media, Inc. (OTCBB: CYPM), a 3D animation studio currently producing ``The 5th Glacial Epoch,'' a 15 million dollar feature, has acquired Joongang Movie Entertainment Co., Ltd., a producer of animated content for the world-famous Pokemon series. Joongang is a profitable 13-year-old animation company with more than 60 different clients among OEM Japanese TV shows, and which also has numerous clients in Europe.

Duk Jin Jang, CEO of Cyper said, ``Cyper will now be able to offer our combined clients traditional 2D along with 3D animation content, enabling the Company to compete profitably with world class animators such as Pixar and Disney.''

STOCK PROFILE OF THE WEEK

We are very excited about our newest stock profile, Cyper Media, Inc. (OTCBB: CYPM). Not only has CYPM received a conditional commitment letter for 4 million of the 15 million dollar production budget for its CGI Animation Feature, "The 5th Glacial Epoch," it has also entered into a commitment for a 5 million dollar advance from an electronic game publisher. The money for its latest venture seems to be pouring in, but mere financing is just the beginning.

The really big news is that CYPM has started the process of getting a distribution contract with MGM, Metro-Goldwyn-Mayer. The 4 million dollar commitment letter from Global Marine is subject to a letter of a conditional Distribution Letter from a major distributor, which CYPM has now secured.

Cyper Media is looking to become a leading producer of 3D digital animation entertainment products for the world broadcast entertainment market.

Cyper Media develops and produces 3D digital animation for television, short films, CGI feature films, home video, music video and multi-media applications such as video games. Cyper Media produces 3D digital animation by applying advanced hardware and software technology using computer systems throughout the production process.

LICENSING & MERCHANDISING RIGHTS

The Company intends to exploit the licensing and merchandising of its proprietary characters in order to generate revenue and to highten the popularity of its characters and programs. By licensing its proprietary characters to select manufacturers and distributors of consumer products such as toys, apparel, school supplies, house wares and books, the Company seeks to capture a portion of the growing licensing and merchandising market which features entertainment properties, such as animated characters. In 1995, this segment of the merchandising and licensing market had retail sales in the United States and Canada in excess of 16 billion dollars.

OUTLINING THE THE OPPORTUNITIES

The demand for animation programming and the business of animation production have expanded dramatically over the past decade. The revival of Disney's feature animation production in the 1990s, and the advent of new entrants like Paramount and DreamWorks SKG, have produced some of the biggest ever box office hits.

The television market has also expanded, offering producers a voracious and lucrative market. Thanks to programs like The Simpsons and South Park, animation has started to become a staple element of prime-time television programming. Animation is an attractive investment because of its longevity, its ability to travel, and the potential to create ancillary revenue streams from home video, publishing, toys and other licensing activities.

As well, the Academy Awards now recognizes Animation in a major category all its own.

COMPETITIVE ENVIRONMENT

Typically a US made 22-minute television show costs between 300,000 to 800,000 dollars to produce. Cyper can produce the same for a minimum of 80,000. This means many U.S.-based producers of animated programming such as Film Roman now have to subcontract some of the less creative and more labor-intensive components of its production process to animation studios located in low-cost labor countries, such as Korea. As the number of animated feature films and animated television programs expands, the demand for the services of overseas studios has expanded likewise. This demand may lead overseas studios to raise their fees, which may result in a rise in production costs, or an inability to contract with the Company's preferred overseas studios.

HOW MUCH MONEY IS IN THIS INDUSTRY?

The list of Top Ten grossing animated movies is impressive. The Lion King is at number one with a total gross of 312.8 million dollars. Shrek brings up second place with a whopping 267.6 million, and Monsters, Inc. takes third with 255.3 million. The other seven rounding out the list post an impressive Billion-plus.

But the most recent animated feature that comes to mind is playing in theaters now. "Finding Nemo," sold about 70.6 million worth of tickets in its first three days, setting a new opening record for a cartoon, surpassing the 62.5 million bow of "Monsters, Inc." in November 2001. And although Nemo is a Walt Disney production, Disney no longer has a monopoly on animated features. In fact, of the Top 10 grossing animated features of all time, 4 are Walt Disney productions while Pixar, a newcomer in comparison, also has 4, with Fox and DreamWorks rounding out the list.

But earnings for such movies don't stop at the box office. Just the opposite--they are only beginning. Merchandising from these movies, everything from lunch boxes to video games to DVD sales, from Wal-mart to McDonald's to Burger King, range in the billions of dollars--and never forget about the impending sequels. Sales are huge, and CYPM through Cyper (now with financing on the way and MGM on their side) is poised to make the climb to the top. It's only a matter of time.

Find out more about CYPM @ www.cypermedia.com.

Please note that Cyper Media had absolutley nothing to do with this report and is not a participant in any way.

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Stock Market Watcher is an independent research firm. This report is based on Stock Market Watcher's independent analysis but also relies on information supplied by sources believed to be reliable. This report may not be the opinion of CYPM management. Stock Market Watcher has also been retained to research and issue reports on CYPM. Stock Market Watcher may from time to time purchase or sell CYPM common shares in the open market without notice. The information contained in this report shall not constitute, an offer to sell or solicitation of any offer to purchase any security. It is intended for information only. Some statements may contain so-called "forward-looking statements". Many factors could cause actual results to differ. Investors should consult with their Investment Advisor concerning CYPM. Copyright 2003 © Stock Market Watcher Ltd. All Rights Reserved. This newsletter was distributed by MMS, Inc. MMS was paid one hundred fifty thousand shares CYPM stock to distribute this report. MMS is not affiiated with Stock Market Watcher and is not responsible for newsletter content.

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