Young Minds, Inc. Completes Reorganization

Streamlines Operations, Releases New Products, and Regains Profitability

Press Release

Redlands, California, January 14, 2000 - Young Minds, Inc. announced today that the company has emerged from bankruptcy effective January 14, 2000. David Cote, Young Minds’ CEO, states:

“The reorganization plan that has been implemented features a 100% payback to the creditors. It represents many hours of hard work by both the management and the creditors committee.  In the past year, the company has reorganized to streamline operations, cuts costs, refocus product development. The bottom line is that we are now profitable and well-positioned to build the company into a market leader.”

“We are poised to recapture our technical leadership in disc storage solutions.  Our existing CD Recording products have received significant enhancements and we are now in the process of rolling them out to our resellers and customers.  We are in beta testing with DVD Studio, which promises to be a huge seller for the company. We have already introduced a Java-based GUI for our MakeDisc software, and have additional Java products that are being added to the product line.  We have just released support across all product lines for Linux.  And we now have a unified product family that features an easy upgrade path, allowing customers to move from CD to DVD, and to scale gradually from one-off operation to a fully functional disc production environment.”

The five year product development plan that Young Minds has put in place is designed to ensure that customers will be able to simply, easily, and economically upgrade to incorporate the newest CD and DVD technology. Entry level systems (basic CD Studio systems) will continue to cost less as the technology declines in price.

Matthew B. Hornbeck, President of Young Minds, pointed out the many benefits that customers will be able to derive from the company’s new Java-based products.

“Building on Java’s ‘write-once/run anywhere’ capabilities, allows us to spend more time adding features and improving ease of use, and less time on porting issues.  We will be accelerating our product development and software release cycles so we can offer greater utility and functionality across the product line. In addition, we can build new add-ons and tool kits that will help end users and integrators.”

About Young Minds, Inc.
Founded in 1989, Young Minds, Inc. (YMi) provides a complete line of network capable DVD and CD Recording solutions for UNIX, Linux, and Windows NT.  YMi pioneered CD-Recording and CD-ROM mass storage in the UNIX market, and continues to deliver the most innovative solutions that are reliable, cost-effective and easy to use.  Andrew Young, Chairman and co-founder of the company, authored the Rock Ridge Interchange Protocols which define additional functionality for ISO 9660 standard discs used in UNIX environments.

Thousands of YMi systems are in use throughout the world in business, industry, government agencies and educational institutions.  Young Minds can be reached on the Internet at http://www.ymi.com, or email marketing@ymi.com.