Settlement Release
PIXFUSION SETTLES PATENT COMPLAINT AGAINST FUNNYBIT STUDIOS;  FORGES LICENSING AGREEMENT

NEW YORK, Date --  PixFusion LLC, creators of customized video products and services and owner of a patent portfolio relating to personalized video and entertainment products, has settled its patent infringement claim against FunnyBit Studios LLC, it was announced today.  The U.S. Patents involved in the settlement include: Nos. 5,623,587 and 6,351,265, and patents issuing from U.S. Patent Application Serial No. 10/083,425. 

PixFusion also announced that it has granted FunnyBit a license to PixFusion’s portfolio. Other terms of the agreement were not disclosed. 

With PixFusion’s patents and their original video productions, FunnyBit offers consumers personalized entertainment products through its website www.funnybio.com. 

Brian Dowdall, President of PixFusion, commented, “We are pleased to add FunnyBit to our ever-growing list of licensees.  While, naturally, we vigorously defend our patents, we also selectively make our licenses available to develop the overall market for photo-personalized video products and services.  FunnyBit offers an imaginative product line that utilizes our technology in a very fresh way.  I have every confidence that we will have a long and fruitful relationship.”

In addition to its patent portfolio, PixFusion publishes an award-winning line of children’s DVDs through its Kideo™ brand.  A wide array of personalized titles are available from Kideo, including releases from such renowned brands as:

• Spiderman™
• Dora the Explorer©
• Barney™
• Care Bears™
• Baby Genius®
• Arthur©.  

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FOR MORE INFORMATION:
Susan Lietz, PixFusion
susanlietz@aol.com
917.499.5053

About PixFusion:
New York-based PixFusion LLC creates a wide range of personalized branded video products and services, and owns the patented technology that automates its products.   Winner of several product awards such as iParenting Media Award and The National Parenting Center award, the company’s Kideo division customizes children’s DVDs of existing, licensed content from some of the most prominent and respected children’s brands including Dora the Explorer©, Spider-Man™, Barney™, Arthur©  and Care Bears™, among others.   This line is distributed through a rapidly expanding network of outlets, including direct-to-consumers at www.kideo.com, numerous retail channels and through a variety of other indirect means.  In addition to its consumer entertainment division, PixFusion has entered into several licenses of its proprietary intellectual property platform based on the strength of its long-standing patent portfolio.

About FunnyBit:
FunnyBit Studios, LLC is a professional video production company that creates humorous gifts combining imagination with entertaining storylines, professional graphic artistry, and clever video production techniques.  The result is a humorous, personalized, and affordable video for any occasion where the laughter it creates will be as appreciated as the gift itself.

Imaging Insider
PIXFUSION SIGNS DISTRIBUTION DEAL WITH LIFEPICS / LifePics to Debut

PixFusion’s Photo-Personalized Videos at Photo Marketing Association Convention Published by PiranhaDailyNews.com February 26th, 2007 in Press Releases Imaging Insider +Piranha Daily News For Immediate Release – New York– PixFusion LLC , creator of photo-personalized, branded video products, has signed an agreement with LifePics, Inc. (<http://www.lifepics.com/>www.lifepics.com), a provider of online imaging solutions, to distribute PixFusion’s full line of audio and photo-personalized licensed cartoon adventure DVDs through LifePics and its network of affiliates. The program will enable consumers to get one of PixFusion’s Kideo brand DVD titles by submitting their digital photographs to LifePics either online or at one of LifePics’ 6,100 affiliated retail locations, including mass merchants, large food and drug chains, local camera shops and independent photofinishers.
LifePics will debut PixFusion’s photo-personalized Kideo products at booth # E241 at the Photo Marketing Association international convention and tradeshow in Las Vegas March 8-11, 2007. PixFusion’s current licensed titles include Spider-Man, Dora the Explorer, Arthur, Care Bears and Baby Genius.
“This is a key step in expanding the availability of our personalized children’s DVDs,” said Marc E. Jaffe, PixFusion CEO. “With LifePics and its network distributing all of our personalized DVDs, it will be easier than ever for parents to order their child a personalized video.”
“This is an incredibly fun and unique product that we are thrilled to offer to the 6,100 storefronts that use LifePics”, said Vahe Christianian, LifePics, Inc. VP
of Sales and Business Development. “We are very excited about offering this product. Finding creative, unique and high margin products like this are absolutely critical to our photo business”, said Bill Dungan, Photo Director at Reasors Foods in Tulsa, OK.

About PixFusion LLC
PixFusion LLC, established in 2001 with offices in both New York City and Palm Beach, Florida, creates personalized branded video products and services and uses its patented technology to automate the production of its finished products. PixFusion, recently awarded several iParenting Media Awards, has proprietary content agreements and is continuing to expand its distribution networks to offer its personalized products direct to consumers and through retailers, manufacturers and other indirect channels.
The company has commercialized children video products through its Kideo brand a successful enterprise selling DVD videos to parents and grandparents of children ages one to seven. Kideo’s existing content is licensed from some of the most prominent and respected pre-school brands including Spider-Man, Dora the Explorer, Care Bears, Baby Genius and Arthur. In addition to its consumer entertainment division, PixFusion has also entered into several licenses of its proprietary intellectual property platform based on the strength of its long standing patent portfolio.

About LifePics
LifePics is the market leader in online imaging solutions for photofinishers and
professional photographers. Using LifePics’ technology, photofinishers and professional photographers are able to accept orders from consumers via the Internet and send those orders directly to a photofinishing lab that is most convenient to the consumer. More retailers use LifePics than any other online imaging solution. LifePics’ customers range from mass merchants and large food and drug chains to local camera shops and
independent photofinishers. These retailers offer the service at more than 6,100 stores across the U.S. and Canada. LifePics works closely with these retailers to help them build their online photo businesses.
LifePics is an open solution that works with a variety of photo software providers and photo web sites. In addition, the service supports a number of different print options - orders can be sent directly to stores for 1 hour service or routed to major wholesalers, gift providers, photo book manufacturers or a variety of other printers.
For more information, visit LifePics at www.lifepics.com.
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Spider-Man fans can now star in their own video adventure - a photo-personalized video, "I Am the Amazing Spider-Man," - produced by PixFusion LLC (www.pixfusion.com), creator of personalized, branded video products, in collaboration with Marvel Entertainment and Spider-Man Merchandising L.P, using PixFusion's patented technology. "I Am the Amazing Spider-Man," available for $39.95 through PixFusion's Kideo brand Web site (www.kideo.com), joins current titles:

• Dora the Explorer
• Care Bears
• Baby Genius
• Arthur

PixFusion takes a child's color photo sent by e-mail or via
regular mail and transforms it into a 25-minute action-packed adventure based on Spider-Man and starring the featured child as the "web-slinger" himself, battling many of the legendary Spider-Man villains such as Electro and Lizard. The customized DVD also contains exciting bonus features, including educational content and a music video set to the classic theme song from the 1960s animated cartoon with the child swinging intoaction "Spidey Style." "With all of the attention on Spider-Man, we will be able to provide children and fans the unique opportunity to watch themselves star as Spider-Man," said Marc E. Jaffe, PixFusion CEO. "Every Spider-Man fan has dreamt of being the web-slinger, and our video allows that transformation to happen."

Pizza International News
Look It’s Me On TV Announces a Dora the Explorer Photo Personalized DVD Birthday Cartoon for Children

Delray Beach, FL: “Whose Birthday is It?” featuring Nickelodeon’s Dora the Explorer is a photo personalized DVD for pre-schoolers that is both entertaining and educational. The product announced by Look It’s Me On TV puts a child in the cartoon to join Dora, Boots and her friends as they go on an adventure to find out “Whose Birthday Is It?”
Through a partnership with PixFusion, Look It’s Me On TV, a Pizza International, Inc. (PZZL.PK) company, distributes, resells and retails a line of unique photo personalized products for children of all ages. The line includes DVD’s and Videos that range in price from $29.95 to $39.95.
Recommended for ages 1 through 6, this DVD lets a child join Dora, Map and Backpack as they climb over Cupcake Mountain, through Sneezing Snake Lake and finally to Play Park where the child’s birthday is revealed. Learning and problem solving skills are also part of the picture including visual and spatial skills through the identification of objects needed in Backpack; logic skills through counting the number of life jackets needed by Dora and Boots to cross the lake; and Spanish language skills that require saying “vamos” to make the elevator and tram go.
“Our market research with parents of young children ages 1 through 6 found that suitable educational DVD’s were at the top of their list for viewable products. We’re pleased to offer this unique and helpful DVD,” said Tim Simpson, Chief Executive Officer of Pizza International, Inc.

Pizza International, Inc. is also the parent company of Pizza.Net, the largest on-line search engine for restaurants that serve pizza. The unique search engine offers basic and premium listings that feature pizzerias and restaurants that serve pizza throughout the United States. It is also headquartered in Delray Beach, Florida.
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PIXFUSION’S SPIDER-MAN VIDEO PRODUCT WINS
NATIONAL PARENTING SEAL OF APPROVAL

Company’s Photo-Personalized Video Products Also Nab
iParenting Media and Family Choice Awards New York – PixFusion LLC
(www.pixfusion.com), creator of photo-personalized, branded video products,
has been honored with the National Parenting Seal of Approval for its
“I Am the Amazing Spider-Man” product. Awarded three times per year, the seal
identifies the finest products and services being marketed to the parent/child audience.
“It’s an honor to have the newest product in our catalog of personalized videos selected for this prestigious award,” said Marc E. Jaffe, PixFusion CEO. “This seal of approval communicates to fellow parents the quality and appeal of our product based on real-life testing by their peers and children.”
“I Am the Amazing Spider-Man” was also recently honored with an iParenting Media Award, which selects products through user, family, and expert product evaluations that provide parents with confidence regarding the products
they are purchasing for their families.
The company’s “Arthur’s New Friend” video was also honored with this
approval in last year’s round-up of products. Additionally, Family Magazine Group’s “2006 Family Choice Awards” highlighted PixFusion’s “Dora the Explorer – Whose Birthday Is It” personalized video as one of the best family products of the year for preschoolers. “All three of these prestigious honors demonstrate the appeal of our various personalized products to a wide audience,” added Jaffe.

About PixFusion LLC
PixFusion LLC (www.pixfusion.com), established in 2001 with offices in both New York City and Palm Beach, Florida, creates personalized branded video products and services and uses its patented technology to automate the production of its finished products. PixFusion, recently awarded several iParenting Media Awards, has proprietary content agreements and is
continuing to expand its distribution networks to offer its personalized products direct to consumers and through retailers, manufacturers and other indirect channels. The company has commercialized children video products through its Kideo brand (www.kideo.com), a successful enterprise selling DVD videos to parents and grandparents of children ages one to seven. Kideo’s existing content is licensed from some of the most prominent and respected pre-school brands including:

• Spider-Man
• Dora the Explorer
• Care Bears
• Baby Genius
• Arthur

In addition to its consumer entertainment division, PixFusion has also entered into several licenses of its proprietary intellectual property platform based on the strength of its long standing patent portfolio.
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