EnXnet Inc.

EnXnet, Inc. (OTC: EXNT) ("the Company") is rapidly emerging as a leading edge provider of next generation digital technologies and products. EnXnet has developed a compelling pipeline of proprietary products, technologies and services, each of which addresses multi-billion dollar markets. EnXnet is positioned to have a high impact on the many uses and applications of digitized data across a broad spectrum of industries, by making it more flexible, practical and easy to use.

Digital MediaThe Digital Media industry encompasses a broad, multi-layered variety of products and services that cuts across the panorama of our lives, impacting both manner in which we conduct business and the products that we use on a daily basis. Several sources have conservatively valued the digital media industry as between $500 billion-$1.2 Trillion in annual product and service revenues.

EnXnet has developed one of the digital industry's most comprehensive portfolios of value-added technologies, products and services, attracting the increased attention of industry analysts and leading technology companies.

Products

• ThinDisc ©ThinDisc© was developed to satisfy the need for a flexible thin disc that could be easily read by existing CD and DVD equipment. A primary application of ThinDisc is in stored value cards. In this application, the ThinDisc stored value card is almost the same thickness as a standard credit card and is easily read by existing credit card readers. Combining traditional magnetic stripe and bar code data with enhanced optical media, the ThinDisc© stored value card can be produced in either Compact Disc (CD) or Digital Video Disc (DVD) in a shaped format similar in size to a standard gift card.
  
  A stored value card is a prepaid card, generally with a merchant logo or name. Stored value cards include, but are not limited to, prepaid phone, event tickets, debit, room key, gift, merchandise, promotion and incentive cards. ThinDisc© offers the card issuer an ideal method of providing its customers with value-added information about the issuer's products or services, as well as promotional information and exclusive offers by embedding media rich audio and video content directly on the stored value card.
  
  Stored Value Cards represent one of the most dynamic and rapidly growing products in the financial industry. It is estimated that more than $72 billion in stored value transactions will be completed during 2006, as compared with $42 billion in 2003, representing robust industry growth of more than 70% in just three years. The stored value card industry is still in the early stage of its product life cycle; with exponential growth projected in the years ahead.

• MoxyCard ®MoxyCard ® is the first patented Multimedia Gift Card™, combining the functionality of a magnetic stripe shaped gift card with the electronic capabilities of a CD or DVD. MoxyCard® offers the opportunity for merchants to establish new sources of revenue by selling the CD/DVD space to their own vendors or other companies trying to reach their customers. The value of the merchants' name brands are significantly enhanced by using MoxyCard®, together with the inclusion of a media advertisements directly on the card. By including special offers, printable coupons, or full video presentations and web link connections directly on the MoxyCard®, the consumer is provided with increased motivation and incentives to purchase the merchant's products.
  
  MoxyCard® represents a unique merger of two products and transforms today's dull static gift cards into a dynamic, interactive marketing and entertainment tool that both engages and informs consumers with compelling media presentations. MoxyCard® is certain to dramatically revolutionize the practice of gift giving, by redefining and adding value to the entire gift chain from the giver, to the recipient and finally the retailer.
  
  EnXnet, Inc's ThinDisc technology significantly enhances the marketability of the MoxyCard® .

• OneDisc™/DVDPlus ©OneDisc™/DVDPlus© is a dual-sided, optical disc that uniquely combines two distinct storage formats on a single disc; a DVD (Digital Video Disc) on one side and a CD (Compact Disc) on the other. Conventional media contains data (video, audio) and other forms of data on only one side of the disc. Even in the case of Dual Layer DVD, an extra layer of recording capacity is added, but only to a single side of the disc.
  
  OneDisc™/DVDPlus© allows content publishers to integrate their visual and audio products into a single distribution unit, such as presenting a feature movie on the DVD side and the soundtrack for the film on the CD side. No other competitive technology available on the market today can accomplish this with the level of performance and player compatibility as EnXnet's OneDisc™/DVDPlus© technology.
  
  OneDisc™/DVDPlus© is positioned to significantly impact the media recording industry, by allowing content providers to integrate their visual and audio products into a single disc which is readable and capable of playback in almost all conventional CD and DVD players and personal computers.

• EnXcase™The EnXcase™ was created specifically for use in retail outlets in conjunction with OneDisc™/DVDPlus© hybrid optical disc to help reduce in-store theft. The EnXcase™ was designed to make the enclosed disc visible at all times, unlike existing packaging which requires opening the case to make certain the disc is present. A patent application covering the EnXcase has been filed and is currently pending.

• ClearVideoClearVideo®© is a patented technology which enables the compression of digital video using fractal digitization and includes high quality audio compression to create files that are a fraction of their former size while duplicating the quality of the content to that of the original. ClearVideo®© can reduce video file sizes by approximately 95-99% while retaining the quality of the original source. ClearVideo®© is compatible with the NTSC, PAL or SECAM formats and can be used effectively for the compression and transmission of video files and is especially useful for the broadcast and related industries.

Security Products & Technologies:Almost $30,000,000 dollars per day is lost across North America due to shoplifting and employee theft. This translates more than $10 billion lost as a result of product theft in 2004. This is a problem that affects not only retailers, since the costs related to theft are directly transferred to consumers and are reflected in the price paid for goods and services.

As a deterrent to shoplifting, and employee theft and other related problems, industry has adopted a number of methods for tagging products, tracing their movement through the use of electronic devices, and providing an alert in the event of their attempted removal from the store. The AM (" Acousto-Magnetic ") Tag is the most commonly deployed electronic surveillance device by retailers. The RFID (" Radio Frequency Identification ") Tag is widely used in tracking products in the distribution chain; however, due to privacy and other issues it currently sees limited use at the retail level.

EnXnet has developed a series of proprietary technologies and is currently developing products that significantly enhances the usability, effectiveness and accuracy of both AM and RFID based surveillance tagging devices, while resolving the problems and limitations associated with each technology

• DSTag™DSTag™ (disc security tag), is an proprietary, patent pending device which utilizes existing EAS (Electronic Article Surveillance) tag technology embedded into the hub ring of a CD or DVD during the injection molding phase of the manufacturing process, making them irremovable from the product without severe damage.
  
  The DSTag™ provides manufacturers with the opportunity to enhance the integrity of their products while providing added value to their retail customers by significantly reducing losses resulting from employee and retail theft. Additionally, it provides content developers, manufacturers and distributors an efficient means to authenticate legitimate products and the ability to protect their investment.
  
  EnXnet is not aware of any other patented technology which embeds an electronic tag within the disc media, such the DSTag™. The DSTag™ was developed for specific use in CD and DVD's and may be incorporated into a wide variety of consumer products.

• EAMTagThe Electronic AMTag (EAMT) is a patent pending security device which allows the tagging of highly valuable products previously difficult or impossible to effectively tag such as pharmaceuticals, cosmetics. In most of these products currently used AM tags cannot be readily applied because of their size and risk of damage to the product. The EAMTag provides an effective and efficient theft deterrent to any product into which it can be embedded during manufacture.
  
  The EAMTag does not require the installation of new surveillance systems or modifications to existing equipment in order to read the tag, and therefore can be utilized by AM security systems all currently in operation. Many leading retailers, including Wal-Mart, Target, Lowes, and Home Depot currently deploy AM theft deterrent systems in their retail locations and plan to expand their deployment in the future. Millions of tagged items pass through these systems every day.

• HyTagHyTag is a patent pending tag that combines the benefits of both the Acousto-Magnetic (AM) and Radio Frequency Identification Device (RFID) in a single product. It is designed to be placed on or embedded within consumer products. The RFID portion of the HyTag can be remotely programmed and can be readily used by any retail location, regardless of whether it uses an AM or RFID tag recognition device.

• aRFIDThe aRFID is a patent pending Electronic Radio Frequency Identification Device that is activated by electro-magnetic pulse or electro-magnetic radiation. The electronic RFID security tags once activated may be adjusted to a range of desired frequencies and externally programmed providing the retailer with enhanced flexibility in inventory tracking and product identification

• RFID Deactivation DeviceThe RFID Deactivation Device is a patent pending technology that resolves the major problem of personal privacy that often arises with the use of RFID tagging of consumer products. Current RFID tags remain readable until physically destroyed, thus allowing the tracking of one's purchases beyond the store or retail outlet and into the home and business, which is considered by many groups as representing an invasion of personal privacy. The RFID Deactivation Device permanently disables the RFID tag at the point of sale, thus effectively alleviating all privacy concerns, which have seriously impeded the widespread use of RFID technology in the retail environment. The RFID Deactivation Device technology can be economically incorporated into a DSTag™ or other RFID product and is a viable alternative for any product with a value of more than several dollars.