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Stockprowler’s pick this week...


eSynch Corporation (OTC BB: ESYN)
29 Hubble
Irvine , Ca. 92618
Phone: (949) 727-3233
Corporate Web Site: http://www.esynch.com/
Shares Outstanding: 28.9 million
Public Float: 17.1 million
Insider Ownership: 41%
Market Capitalization: $ 2.3 million
Closing Price Friday 1/25/2002: 8 cents

On January 11, 2002 eSynch Corporation announced that its Oxford Media Division has succeeded in compressing/recording 4 full length movies, about 7 hours in total length, onto a single DVD-ROM using eSynch's DRM technology in conjunction with Microsoft® Windows Media DRM technology and Microsoft® Windows Media ™ Encoder. The company’s EnhancedDVD-ROM ™ technology will enable content owners to consolidate their DVD-ROM replication by substantially increasing the amount of information on one DVD-ROM thereby decreasing replication costs. In addition the technology delivers protected video that can be unlocked on-demand via a transaction on the Internet and viewed using eSynch's MediaOffice ™, a Digital Rights Management solution.

Typically, a single DVD holds about 2 hours of programming. Unlike the common DVD, DVD-ROMs are designed to operate within your computer. The new Enhanced DVD-ROM ™, designed by Oxford Media, incorporates many new technologies into a super hybrid disc that may contain up to 8 hours of high quality video and audio, interactive menus, digital rights management, encryption and transaction capabilities.

David Lyons, president of eSynch Corporation stated, “The response to last week's press release introducing EnhancedDVD was overwhelmingly favorable… The telephone calls have not stopped since the release last week with interest spanning from the technology itself to the licensing and sales of the product. An article in The Hollywood Reporter on January 17 discussed the future of DVD and the Internet, mentioning that several major Hollywood studios are looking at the incorporation of the two. The article by Brent Sporich mentions eSynch's new EnhancedDVD-ROM ™ technology as “...enabling the incorporation of the DVD disc and the Internet, allowing a consumer to purchase a DVD video that also could unlock streaming media content on the Web or additional content from the disc. That content could be available for an additional price or as added-value bonus materials on the disc or from an Internet server.” The complete article is available at http://www.hollywoodreporter.com/

eSynch Corporation designs, develops, markets and supports intelligent digital media solutions and services, including audio and video encryption, delivery, tracking and measurement tools and media rights management software technology for the streaming media market. The company has developed a suite of software and related components designed for the delivery of live and on-demand audio and video through cable, satellite and the Internet.

On January 18, eSynch announced it had entered into a reciprocal marketing agreement with BuyMicro, an online ecommerce computer products distribution company. eSynch’s Kissco™ branded software utilities are focused on ease of use in enhancing computer performance and interaction with the Internet. BuyMicro sells and distributes over 110,000 computer and computer related products worldwide through its full service website at http://www.buymicro.com Just last month, eSynch announced that it had inked a Business Partner Agreement with TEC-Networks to market eSynch's products. The agreement allows TEC-Network's to offer business enterprise solutions using eSynch technology and products to its more than 5,000 corporate clients in California and Florida.

eSynch (OTC BB: ESYN) closed Friday at 8 cents on volume of 509,700 shares. Shares of ESYN are up over 80% on the month. Last week in an e-mail released on the Internet, eSynch CEO Tom Hemingway is quoted as saying, “We have only begun to release our new product line for the video industry. As we progress through the company's redevelopment we will shock this market with what our capabilities are.” He went on to say that the company is in a much stronger position financially than it was a year ago. Regarding rumors circulating about a possible buyout of the company, Hemingway is quoted as stating, “I will tell you that management has been approached and is entertaining several offers that we hope will be in the near future.”

Recently, Donner Corp. International issued a “Speculative Buy Recommendation” on eSynch Corporation highlighting the company's expansion of its product and service offerings and its new aggressive strategic growth plan. Donner stated in the report: “We believe eSynch is undervalued considering the large and growing demand for the Company's products and its key strategic alliances. These factors in combination with the Company's strong management team leading the way to successful implementation of its solid strategic growth plan, inevitably eSynch will meet its goals of expanding its marketing focus and most importantly shareholder value.” The full report is available at www.donnercorp.com

Stockprowler.com readers are encouraged to visit the eSynch company web site for further information. Stockprowler.com did not receive compensation of any kind from the company or third parties for writing this report. Stockprowler.com views ESYN as a high risk/reward speculation. Readers are urged to read the company SEC filings and do their own due diligence before investing in this or any other stock.

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