GenuOne Launches Company and Security Incubator

New Balance Opting for Global Brand Security
Boston, MA - June 05, 2002

GenuOne, Inc., a provider of strategic proactive, brand security solutions today announced the launch of the company and the presentation of a key customer, New Balance Athletic Shoe, Inc., a leading international sports shoe manufacturer. GenuOne also announced the debut of its security-based technology incubator, GenuOne Technology Capital (GTC).

GenuOne develops, implements and maintains long-term brand security strategies that fight counterfeiting, gray market diversion, licensing/royalty fraud and brand exploitation both in the physical world and on the Internet. GTC is designed to provide applications, integration, implementation, capital and corporate development counsel for new companies developing brand security products.

GenuOne provided New Balance with an instant authentication program, which enables New Balance to obtain instant authentication of their products anywhere in the world.

"GenuOne offered us a total solution that incorporated technology-based products and expert services. Other companies were only offering us technologies with no help on the implementation side," said Jim Davis, chairman and CEO of New Balance. "Now, we can track counterfeiting and fraud violations both on and off the Internet -- all over the world, at a variety of points in the manufacturing and distribution cycle. We are very encouraged that our overhead due to counterfeiting and fraud will decrease significantly."

GenuOne Methodology

GenuOne's brand security solutions are based on a clear set of strategic objectives that ensure a deep understanding of a client's needs and objectives. GenuOne's delivery model is a proactive methodology entitled the Brandsecure™ Solution. This solution is divided into four segments: GenAssist™, GenuGuard™, GenuNet.com™ and GenuTrack™.

• GenAssist - GenuOne's recommended entry to a Brand Protection Strategy. A GenAssist consulting team evaluates the technical, financial and practical impacts of integrating your business with one or many GenuOne control or authentication/tracking solutions for physical products or online intelligence.

  Supply Chain Security (SCS) - An assessment is conducted to identify key susceptibilities in a company's overall supply chain security level. These assessments enhance the client's control of their supply chain. An integration plan is devised to incorporate GenuGuard, our Brandsecure technology portfolio and GenuTrack, our database tracking system, to protect your products from pilferage, diversion and counterfeiting.

• GenuGuard - GenuOne's portfolio of machine-readable authentication and tracking technologies. GenuGuard brings our clients the most advanced, machine-readable, covert systems available today. The GenuGuard portfolio includes ink-based, dye, photonic and digital watermark solutions. The inherent flexibility of these cutting edge technologies provide for robust applications that protect documents, packaging, product or content.

  GenuOne's experience in product development, quality control methodology and implementation make us uniquely qualified to deliver integrated solutions for authentication, tracking and controls.

• GenuNet.com - GenuNet.com helps companies control online business risks. GenuNet.com provides clients with competitive intelligence needed to identify unauthorized activity occurring on the Internet. GenuNet.com's proprietary enabling technology allows us to probe far beyond the reach of shallow commercial search engines, deep into the Internet. Enabling technology is programmed and calibrated to systematically report the intelligence needed to develop comprehensive e-commerce brand protection strategies.
• GenuTrack - GenuOne's management reports are the key to policy driven Brandsecure strategies. GenuOne can build a secure database to view tracked data driven from machine-readable GenuGuard technologies on client products. A GenuTrack solution can streamline a company's brand protection intelligence for centralized distribution, project collaboration and reporting.

  "With GenuOne and GTC we are breaking new ground," said Jeffrey Unger, president and chief executive officer of GenuOne. " With our strategic, innovative approach to brand security issues, we offer the business world a long term, total security solution based on our advanced technology and proven methodologies."

GenuOne Technology Capital (GTC) GenuOne Technology Capital is a security-focused technology incubator, designed to offer technology development companies access to GenuOne's applications, integration, capital and business development. GTC is driven towards security technology companies who posses a mission to build advanced machine-readable solutions for authentication, tracking and control, in both the physical world and online. GTC is the source for GenuOne's current and future technology needs. Current technology investment projects include:

• Pitkit Technologies: An Israeli based technology incubator, which develops leading brand security solutions to control counterfeiting, diversion and product authentication, specializing in secure printing and fiber optic technologies.
• OPTID Tech: An Israeli based company, which develops leading optical solutions for the access control, brand name security and product authentication markets, through utilizing its unique technologies and integrated capabilities in the fields of non-conventional micro-optics, electro-optics and image processing.

Strategic Alliances

GenuOne's strategic alliance partners currently include:

• TD International: A Washington, DC based international corporate intelligence company that provides GenuOne with Business Intelligence/Field Monitoring - coordinating a worldwide network of "feet on the street". TDI expertise includes investigation and monitoring programs that utilize GenuGuard technologies to authenticate and track client products.
• Bell Labels: A Maine based manufacturer of quality woven and printed label products for the apparel, retail, shoe and home furnishing industries for over fifty years. Together with GenuOne, Bell Labels is now able to offer a Brandsecure program to their extensive client base.

Markets

GenuOne is targeting a number of markets with its solutions. These markets include sporting goods and equipment, brand name apparel, cosmetics, business consumables and luxury brands.

About GenuOne
GenuOne is an innovative provider of comprehensive brand security solutions, offering a fully integrated approach to intellectual property protection. Its technology and integration services maximize brand dominance and minimize counterfeiting, product diversion, licensing/royalty fraud and intellectual property theft in the physical world and on the Internet. GenuOne's authentication, tracking and control technologies combined with its integration services allow companies to monitor products throughout the supply chain cycle, from the initial manufacturing process to the retailers' shelves, as well as on the Internet. GenuOne has developed strategic, BrandsecureTM solutions for companies including New Balance Athletic Shoe, Titleist and Footjoy Worldwide and Xerox Corporation. Its solutions have empowered these companies to protect the integrity of their brands. Visit the GenuOne website at www.genuone.com.

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. The Company assumes no obligation to update the information contained in this press release.