GYRICON MEDIA, INC. ANSWERS MARKET DEMAND FOR REMOTE CONTROLLED DYNAMIC SIGNAGE WITH S.A.M. - THE SHOPPER'S ANSWER MACHINE

CREATOR OF SMARTPAPER TECHNOLOGY ALSO BEGINS SYNCHRONOUS ENGINEERING OF DYNAMIC SHELF RAILS & LABELS FOR GROCERY, DRUG & DEPARTMENT STORES AT RETAIL SYSTEMS 2001 AT CHICAGO'S MCCORMICK PLACE JUNE 25

Palo Alto, CA (June 26, 2001) -- Gyricon Media, Inc. (gyriconmedia.com), the leading innovator in SmartPaper technology and retail signage solutions, announced today that due to the tremendous reception and demand by the retail market for remotely-controlled, dynamic signs, they will begin offering S.A.M. - Shopper's Answer Machine - to the retail industry. Simultaneously, the SmartPaper technology company will continue to focus their efforts on the production of SmartPaper based signs. At Retail Systems 2001, Gyricon will begin the synchronous engineering of remotely controlled, instantly updateable shelf rails and labels.

"We have been thrilled with the market demand for MaestroSign Systems," said Geert de Haas, Gyricon CEO. "And we are happy to answer that excitement with S.A.M. -- a state-of-the-art scan station -- that will not only assist retailers with sales lift but will make shopping more convenient for customers. Meanwhile, we will continue our research and production of SmartPaper based signs as a cost effective, environmentally-sound and dynamic alternative to traditional retail signs."

S.A.M. presents retailers with a solution for the independent, on-the-move customer craving product information. It will offer them instant answers on any item, anywhere in the store and responds with customized upsell/cross-sell messages at the same time. These LCD-based customer service devices, optimized in store departments, will scan the bar code of any item and display the correct price on the screen, along with detailed product information. The display can also be customized to include visuals, such as moving video images of the product in action or messages about compatible products, encouraging added sales. When not scanning a specific product, the device can function as a dynamic display sign showing in-store promotions, full motion video or even a store map.

Simultaneously, Gyricon Media is developing applications for their SmartPaper technology or MaestroSign displays. Most recently, Gyricon has begun to focus on shelf rails and labels, another breakthrough application for grocery, drug and department stores, which is cost effective and environmentally sound. The current benefits and functionality of shelf rails and labels currently mimic the other MaestroSign System applications, including:

• ?The ability to change the signs remotely from any location,
  
  
• ?The ability to view the layout of all the signs in the stores using MaestroWare software,
  
  
• ?Synching of signs with central databases to ensure price integrity and stocked inventory, and
  
  
• ?Significant cost savings due to reduction in paper signs, labor, and missed promotions.

Gyricon Media will be displaying their product at Retail Systems 2001 at McCormick Place in Chicago June 25-28, (Booth #119) and hosting multiple focus groups there to ensure that the shelf rail application for SmartPaper becomes the global standard for dynamic signage in drug, grocery and department stores, customizable for each and every retail situation. Company executives will be hosting potential partners and customers in their Hyatt Regency McCormick Place suite to determine what functionality and pricing will make SmartPaper-based shelf rails a singular solution for their retail business.

Gyricon Media, spun off from the Xerox Corporation's Palo Alto Research Center in late 2000, introduced their total solution for the retail industry in March at GlobalShop 2001 in Chicago, to a strong reception from the marketplace. The solution includes their patented SmartPaper technology or other display media and their patented MaestroWare software, an innovative, scalable client-server technology for the design, wireless transmission and real-time management of dynamic screen display and advertising content. Initial customers for the total solution -- MaestroSign Systems -- include Macy's East, part of Federated Department Stores, and Thomson Leeds, part of the Array Marketing Group, and the leading global P.O.P. provider.

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 the Xerox Corporation. Gyricon Media, Inc. is comprised of former researchers, from Xerox's Palo Alto Research Center, who developed SmartPaper" technology and software professionals with expertise in the retail signage software business. Gyricon Media, Inc. is managed by a group of seasoned international executives.