NS8 and Sova Digital Inc. Enter into Agreement to Enter Chinese on Demand Market and North American Product

NS8 Corporation announces that it has entered into a memorandum of understanding with Sova Digital Inc, a leading Asia based North American supplier of digital home and commercial electronic appliances, to offer internet on-demand services to Asia Pacific Markets. The first phase for China, Hong Kong, and Taiwan is planned for first quarter 2006. Based on the success of the initial first phase, market strategies to enter into Japan, Korea, Australia and Singapore will be developed.

In addition, Sova Digital has agreed to enter into a North American resale and distribution partnership with NS8, scheduled to complete before the end of its third quarter, to offer custom branded digital media appliances to NS8 customers providing direct to consumer on-demand interactive media services.

Under the terms of the deal, Sova Digital will provide for funding and the facilitation of personnel, offices and marketing resources to create a Sova-NS8 joint-venture company in China/Hong Kong before the beginning of fourth quarter 2005. NS8 will provide its iWave Interactive Systems under a multi-year licensing agreement to the joint-venture including technological and implementation support to their deployment and sales engineering teams. In addition to iWave, NS8 has also agreed to license to the Sova-NS8 joint-venture under a 2 year option, certain non-resident software applications for the Chinese education market. In addition to licensing revenues, NS8 will also participate in joint-venture revenues derived from content usage, and interactive merchant and advertising sales.

"We intend to offer access to iWave through our LCD home media products and the strategy of offering educational services to the Chinese population via the internet using our home computer and DVD products," said Yong Shen, President of Sova Digital Inc. "NS8 has the advanced technological sophistication in handling the Chinese and Asia Pacific markets from consumer experience flexibility to advanced security. We will be conducting a series of beta and pilot tests during the next few months in order to assess how much resources and support we will truly need for this undertaking. We believe this will open new opportunities to North American content and children game distributors in being able to safely and economically reach a mass population like China or Asia that is increasingly becoming more connected and advanced."

"Being selected by Sova Digital to become their interactive service enabler in China is a big win and validation for NS8," said Bryan Greear, SVP of Sales and Marketing for NS8. "Being offered to every consumer purchasing an LCD TV or Monitor is a great entry way for any digital service provider using our system. Now that we can offer PC or TV consumer portability with respect to the interactive on-demand experience, a service provider can have a greater assurance of keeping its consumer where ever that consumer goes in Asia. Furthermore, having a large manufacturer and distributor like Sova Digital as our North American partner for home media appliances gives NS8 greater flexibility to offer a private branded consumer solution to its customer base using iWave."

About NS8 Corporation

NS8 Corporation (www.ns8corp.net) is a Software Development Company based in Seattle, WA, USA with Research & Development facilities in Canada. NS8 Specializes in the development of server-based software technologies in the areas of smart encryption, content licensing and royalty distribution management, including interactive consumer experience viewing systems such as automated advertisement and catalogue merchandise management for Internet on-demand applications. NS8's products are built around a highly integrated and scalable IP technology platform to ensure end to end security distribution and revenue management of content from creation to consumer delivery using Personal Computers, IP Set-top box, PVR or any IP compatible portable media device.

iWave Interactive Systems is an NS8 product line that combines its proprietary security, software architecture and server based technologies for use by content owners, media distributors, digital storage facilities, digital asset management firms and interactive service providers such as streaming or still image advertisers, food delivery services and catalogue merchant retailers. iWave provides these business sectors with a cost efficient automation solution for processing distribution licenses, territorial viewing policies, consumer recording and transfer rights, payment collection and media usage auditing, service or merchandise ordering, and royalty management. iWave also offers an interactive consumer menu system that can integrate with existing middleware systems for on-demand functionality and provides automated private-label and brand management capabilities that can be accessed by a consumer from any PC, MAC, WiFi or digital set-top box environment.

About Sova Digital Inc.

Sova Digital Inc. is a Texas based corporation founded in 2003 to provide distribution for Asian made consumer electronic products under the Sova brand in North America. The Company is supplied by Asian based suppliers manufacturing OEM and ODM electronic products for various European and Asian based companies. The Company is funded by the Shanghai Industrial Investment Group, Ltd., the largest investment arm under the Shanghai municipal Foreign Cooperation Bureau which holds assets in various technology and electronic related manufacturing companies in China and throughout Asia. Shanghai Industrial holds a major interest in SVA, one of the largest Consumer Electronics Manufacturers in China.

Sova Digital Inc.'s mission is to provide economically affordable high quality consumer electronic products to North America through resellers, direct to consumer and commercial installation marketing channels. The company's main products, range from LCD TV's to home audio theatre systems and portable DVD's. Currently, its primary product line in North America are a wide range of affordable LCDTV's sold through regional retailers such as Fry's Electronics, and e-tailers such as Amazon.com and TigerDirect.com. Its LCDTV display products have also been introduced through major TV shopping networks such as ShopNBC, ShopatHome and Home Shopping Network.

Safe Harbor Statement

Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company's beliefs and the assumptions it made using information currently available to it. Because these statements reflect the Company's current views concerning future events, these statements involve risks, uncertainties and assumptions. The actual results could differ materially from the results discussed in the forward-looking statements. In any event, undue reliance should not be placed on any forward-looking statements, which apply only as of the date of this press release.

Trademarks

Consumer Program and Shopping Guide, CPG, Library Distribution Management System, LDMS, NS8, Secure Digital Content Distribution, Security Protocol Integration, SPI, and iWAVE Interactive Systems, are either registered trademarks or trademarks of NS8 Corporation or its subsidiaries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

NS8 Corporation (OTC Bulletin Board:NSEO - News)



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Contact:
NS8 Corporation
Brad Long
NS8 Investor Relations
Toll Free: 1-888-240-6736 or (360) 945-0757
Fax: (360) 945-2491
blong@ns8corp.net
www.ns8corp.net



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Source: NS8 Corporation

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