GYRICON MEDIA, INC. FORMS STRATEGIC ALLIANCE WITH P.O.P LEADER THOMSON - LEEDS & PLANS FIRST INSTALLMENT OF ELECTRONIC PAPER SIGNS AT MACY'S SITE

XEROX PARC SPIN-OFF ALSO MAKES BIG IMPACT AT GLOBALSHOP IN CHICAGO

Palo Alto, CA (April 4, 2001) -- Gyricon Media, Inc. (gyriconmedia.com), a provider of SmartPaper technology and retail signage solutions, announced today strategic partnerships with Thomson-Leeds, a provider of point-of-purchase (P.O.P.) retail products and a division of Array Marketing Group, and Macy's East, a division of Federated Department Stores, for use of the company's SmartPaper technology and MaestroSign Systems retail solution. These initial partnerships follow the recent launch of the company, which was spun-off from the Xerox Corporation in December 2000. Gyricon has received a resounding welcome from the market in their first few months, garnering significant interest from some of the country's largest mass merchants, chain stores and department stores. The company introduced their groundbreaking product - MaestroSign Systems - at GlobalShop, the world's largest annual store design and in-store marketing show, in Chicago two weeks ago.

"As a new company in the retail marketplace we have exceeded our goals and expectations," says Bob Sprague, Interim CEO of Gyricon Media, Inc. "We are excited about our initial partnerships with Array's Thomson-Leeds and Macy's -- two of the most well-respected companies in the industry -- and we plan on moving forward on our course to revolutionize the world of retail signage solutions."

The strategic alliance between Gyricon and Array/Thomson Leeds is for P.O.P distribution of Gyricon's battery-operated, SmartPaper based signs in North America for two years. The leading provider of P.O.P. retail products in the world, Array/Thomson Leeds will work with leading worldwide brands to design unique P.O.P. displays -- signs that flash, tell stories, and draw attention - with SmartPaper signs. The SmartPaper technology is part of a total retail solution developed by Gyricon Media, called MaestroSign Systems, which provides retailers with patented MaestroWare Software designed to enable them to change their SmartPaper based signs instantly from either a central location or individual stores. Array/Thomson Leeds will also use the MaestroWare Software and remotely controlled SmartPaper based signs on a smaller scale. Array/Thomson Leeds will work with Gyricon to provide in-store P.O.P. displays to exhibit sports scores, lottery numbers, weather forecasts and much more. Array/Thomson Leeds P.O.P. key customers include Microsoft, Phillip Morris, American Express, Coca-Cola and Kraft Foods.

"We rarely see a product like SmartPaper technology enter the P.O.P. market," said Doug Leeds, chairman and CEO Array's Thomson-Leeds. "It has the capability to have a profound impact on the industry and we are anxious to work with Gyricon Media to get it into the hands of our clients."

Gyricon Media has also formed an agreement with Macy's East, a division of Federated Department Stores, Inc. which will make the legendary store the first installation site for MaestroSign Systems. This program will implement the MaestroSign System solution, at Macy's department store in Bridgewater, New Jersey. Beginning June 1, 2001, the Bridgewater store will install 15 SmartPaper based signs within the new children's department, Kidz Zone. The initial in-store-testing period will last for approximately six months, running through Christmas 2001. Gyricon and Macy's East will work together to determine the success of the project through a series of measured metrics, which will be extrapolated, where applicable, to determine the effects on an entire store. The areas of measurement will include: positive customer experience (through regular customer interviews), pricing integrity, sales lift, in-store employee reaction (through employee interviews), material and supplies savings, direct sign labor savings, indirect labor savings (price checks, management time, etc.), and reliability of signs.

"We are interested to see how Gyricon Media's MaestroSign Systems solution will enhance the customer experience at our Bridgewater store," says Ben Diss, director of information systems. "We see this as an excellent opportunity to further secure pricing integrity and improve the overall aesthetic of the store."

Gyricon Media, Inc. has had great success for a four-month-old company and has already captured the interest of the retail marketplace. The company introduced the MaestroSign Solution at GlobalShop, a retail industry-leading tradeshow, where the response was overwhelming. Gyricon had nearly 5,000 visitors, including customers, press and investors at the booth during the three-day event, while conducting numerous personal interviews with interested parties.

About Gyricon Media, Inc.
Headquartered in Palo Alto, CA and with offices in Boston, MA, Gyricon Media Inc. was founded in 2000, after being spun off from Xerox. Gyricon Media, Inc. is comprised of former researchers, from Xerox Corporation's Palo Alto Research Center, who developed SmartPaperÔ technology and software professionals with expertise in the retail signage software business. Gyricon Media, Inc. is managed by a group of seasoned international executives.

About Array Marketing Group
Array Marketing Group is a privately held company that provides fully integrated in-store solutions to a diverse clientele including retailers and brand manufacturers worldwide. Array was formed in July 1999 by Los Angeles-based Brentwood Associates, a leading private equity investment firm; TAG Venture Partners, a leading investment and strategy consulting firm based in Boston; and the Array management team which is led by Rick De Herder, a former executive with Mattel and Sears, Roebuck and Co., who serves as Array's president and chief executive officer.

After an intensive study of the marketplace, Array was created to meet the growing demand by leading retailers and brand manufacturers for a full complement of in-store marketing strategies and solutions.

Array marshals, through acquisition, the very best companies in the industry. The Array family of companies employ more than 700 individuals and comprises American Manufacturing Company, acquired November 2000, based in Chattanooga, TN; IDMD Design and Manufacturing- whose acquisition was announced January 22, 2001, with offices in Chicago, New York, Toronto, Canada and Paris, France; KCS Industries, acquired July 2000, based in Wisconsin; and Thomson-Leeds Company, acquired September 2000, based in New York.