Japanese Corporation Files Lawsuit Againt Nutech Digital

Los Angeles, California

On May 20, 2005, Ken Groove, a Japanese Corporation filed a civil lawsuit against NuTech Digital, Inc., a California corporation in Los Angeles for breach of contract, accounting, conversion, breach of fiduciary duty, constructive trust, and for a temporary restraining order and preliminary injunction.

Ken Groove alleges that NuTech was in breach of its animation distribution agreement with Ken Groove by allegedly tendering payments in the sum of $292,000 on insufficient funds and failing to abide by Ken Groove's distribution agreement.

Ken Groove is also seeking payment of unpaid royalties on all titles distributed by NuTech and its distributors, as well as an injunction restraining NuTech Digital's conduct.

Ken Groove also alleges that NuTech has allowed its titles to be digitally distributed via streaming technology without Ken Groove's consent.

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