Message from Irene Nesbit, President Nesbit Systems Inc.

I hope that you had a wonderful summer (in spite of the weather). We enjoyed a great summer at NSi, and have been encouraged by the upswing in our core Media Library System business as well as our WebMLS. And our strategic venture with Fort Lee Film and Storage, Modern Media Services, has really begun to take off. In summary, we have had a very busy summer.

A number of new and interesting clients joined our installed base this summer (see below). We have also completed a number of system upgrades to our SQL version of MLS and have been extremely busy with our customization work for existing clients. This has included our first link with a traffic system, and other interfaces to production based systems. During the summer we have also performed extensive testing and certification of MLS with Microsoft XP – not an easy job but many of our clients have been upgrading to XP.

Our clients are increasingly integrating Internet access (WebMLS) into their asset management strategies using our Media Library System. Most of our new clients are including Web access as part of their MLS system design and package. This seamless integration is a compelling tool for broadcast and production operations. WebMLS serves as an extension to our MLS product and allows Internet access to an MLS database residing on a web server. In addition, some of our clients are using WebMLS to provide a commercial aspect to their business by using it to sell owned footage to interested third parties.

Modern Media Services has proven to be a successful merger of storage services and NSi technology. We have had vast interest in this business and it has exceeded our expectations for this quarter. Companies we have spoken with have provided us with positive feedback on the MMS business model. Having real time access to their media assets at Fort Lee Film and Storage, with the service aspects of logging, capturing metadata and bar coding is a value added package with a real return on investment.

Best wishes for an enjoyable end to the summer and we look forward to hearing from you in the fall.

New Clients

We would like to welcome two outstanding technology clients, Oracle and Computer Associates/. They join the ranks of our business clients who use MLS for their in house production operations. In addition, Fox Digital is the newest user of our WebMLS system, providing Internet access to their Media Library System in Houston.

We have also added to our European base by selling our Media Library System to Origin, a post production house in Madrid.

Our relationship with Fox continues to expand as well. We are pleased to announce that additional Media Library installations are planned for four Fox Regional networks: West, Southwest, South and Rocky Mountain.

USA Networks and Nesbit Systems at the US Open Tennis Championships

NSi has enjoyed a long and successful relationship with USA Networks. USA has been a user of our Media Library System for 12 years and deploys an interesting configuration of the system every year at the US Open Tennis Championships in Flushing Meadows, New York.

During their broadcast of the US Open USA runs a T1 line from their data processing center to a truck on site at the Open. In the truck are PC’s connected back to the MLS system via the T1 and users access MLS on site. The system is used to enter all new tapes that are created on site during the broadcast. In addition, the location is tracked of all video that is sent and created using MLS bar code technology. And perhaps most importantly, USA uses MLS to handle endless requests from producers who are constantly looking for specific footage requests that they user to create pieces which often air later that same day.

USA uses MLS at the Open in a very similar manner that NBC and CBS used it in broadcasting the Olympics.