GYRICON MEDIA, INC. UNVEILS PLAN FOR SmartPaper^TM' DEVELOPED AT LEGENDARY PALO ALTO RESEARCH CENTER (PARC)

Solution for Retail Signage and Displays - MaestroSign^TM Systems' -At GlobalShop 2001 Tradeshow in Chicago March 22 - 24

Palo Alto, CA (March 1, 2001) -- Gyricon Media, Inc., a Xerox spin-off, today announced that the electronic, reusable paper that has been in development for several years at the legendary PARC facility, will be marketed as SmartPaper^TM technology in conjunction with a uniform software solution - MaestroSign^TM Systems. This application will enable retailers to electronically and instantaneously change point-of-sale sign displays, while synchronizing prices with those at store cash registers. Retail experts say Gyricon's total solution will empower the retail industry to save considerable money on the cost of paper, to make better use of the industry's workforce, and to eliminate pricing inconsistencies.

In addition, timely discounting opportunities previously unachievable with paper signs will lead to additional sales uplift. The environmental benefits of SmartPaper^TM technology are exceedingly clear, as this reusable product will replace the millions of cardboard signs that are discarded in the retail industry each day. Gyricon Media, Inc. will present and demonstrate MaestroSign^TM Systems at GlobalShop, the world's largest annual store design and in-store marketing show, in Chicago March 22-24.

"Pricing inconsistencies are a significant problem for the retail industry," said Robert Sprague, CEO of Gyricon Media, Inc. "Last year only 12% of stores checked by the state of Arizona Department of Weights and Measures had 100% accurate prices at checkout scanners."

While this breakthrough technology is expected to save the retail industry a substantial amount of money, it will also present retailers with the opportunity to capitalize on sudden market changes with instant promotions.

"With electronic reusable paper signs, store shelves can be as dynamic as an Internet page," said industry analyst Amy Wohl, president of Wohl Associates, Narberth, PA. "Now, retailers can create new promotions on the fly - changing prices and advertising content to capitalize on inventory positions, competitive situations, weather, or other market dynamics."