Press Release

iPublish.com Enters into eBook Conversion and Logistics Agreement with Texterity

Uses TextCafe, Industry's Only Automated eBook Conversion and Logistics Service

August 29, 2001

Southborough, MA, and New York, NY, - Texterity, Inc., a leading provider of electronic publishing services, and iPublish.com at Time Warner Books, today announced the signing of an eBook conversion and logistics agreement. Under the agreement, iPublish.com will convert existing authors' works into multiple eBook formats and distribute the resulting eBook files to retailers using Texterity's automated TextCafe conversion and logistics service.

Texterity will provide automated conversion of existing files into Open eBook format, enabling distribution for the Microsoft Reader, Adobe eBook, Palm/Peanut Reader, Gemstar REB-1100 and REB-1200, and other eBook software and hardware. Texterity will also provide automated distribution of final "ready to sell" eBooks to distributors including amazon.com, bn.com, Lightning Source, Gemstar, Palm, and Reciprocal. This will enable iPublish.com to quickly, easily, and economically make its titles available in industry-standard formats to multiple distribution channels.

"Texterity will play a crucial role in helping iPublish.com make its eBooks available at the broadest range of retailers and in the broadest selection of formats," said Gregory Voynow, general manager of iPublish.com. "We're pleased to be working with a company like Texterity that shares our commitment to introducing more and more readers to the convenience of eBooks."

Texterity will provide conversion and distribution services for all Time Warner Trade Publishing imprints, including Warner Books and Little, Brown, as well as the novels that iPublish.com selects from submissions to iWrite, its online writing community. In partnership with AOL, iPublish.com is running an innovative promotion at http://newauthors.ipublish.com to promote these new authors and their novels.

"We are excited to see Greg and his team at iPublish.com using our eBook conversion and logistics services, and are pleased that they have selected us," said Texterity President Martin Hensel. "We believe that iPublish.com is one of the first truly integrated digital publishing companies, and their selection of Texterity confirms our industry leadership and technology-based solutions over labor-intensive approaches from the past."

The iPublish.com agreement adds to Texterity's premier list of publishing customers using Texterity's outsourced publishing services. TextCafe is the industry's first automated electronic publishing conversion and logistics system. The conversion engine is an expert system that discerns the hierarchical structure of documents based on visual cues, and combined with knowledge of document types results in richly-tagged, multi-purpose XML. The logistics solutions supports the full eBook lifecycle, including tracking, file receipt, conversion steps, quality control, and final distribution to file hubs.

About iPublish.com at Time Warner Books

Tapping the power of the Internet to discover new writing talent, iPublish.com (AOL Keyword: iPublish) is a groundbreaking online community where aspiring writers can submit their works directly for consideration for publication. Showcasing everything from online writing courses to a wide selection of published authors, iPublish.com represents the first fully integrated, end-to-end digital publishing business.

About Texterity, Inc.

Founded in 1991, Texterity (www.texterity.com) is a leading provider of electronic publishing services enabling fast, cost-effective automated transformation of published pages into multiple electronic formats. Texterity's electronic publishing solutions include the repurposing of PDF-based content and distribution of electronic files to multiple electronic retail channels. Texterity manages the ePublishing lifecycle, including automated conversion and distribution of existing content into XML, HTML, eBook, Wireless, and Print. Texterity provides services to leading publishing, catalog, eBook, portal, and corporate customers including Penguin Putnam, Time Warner, Prentice Hall, Houghton Mifflin, Harcourt General, World Book, Perot Systems, Lycos and Gartner Group.