MOD Systems and Warren Lieberfarb Settle Litigation

May 27th, 2009 - Seattle and Los Angeles

MOD Systems^®, Inc., an industry-leading provider of digital media delivery systems for retailers, and former consultant and board member Warren Lieberfarb, today announced they have settled their pending litigation. The terms of the settlement are confidential.

"Mr. Lieberfarb is a respected industry veteran, and was a valued contributor to MOD Systems' development," said Anthony Bay, Chairman and CEO of MOD Systems. "We are pleased to resolve this matter and to continue to devote our resources and attention to the enhancement of our technology and business model."

"While this litigation was unfortunate, it has now been resolved," said Warren Lieberfarb. "I am happy to be putting this matter behind us."

About MOD Systems

MOD Systems provides retailers with a complete digital media system for delivering content to consumers. The MOD Retail Enterprise System enables consumers to fill portable devices and storage media, or burn content to an optical format (CD/DVD). The system also supports hybrid "multi-channel" online and in-store solutions. With an extensive entertainment catalog of video and music, and an interactive touch-screen kiosk, the system allows consumers to shop for and buy the entertainment they want in the places they already shop. http://www.modsystems.com/