LINTHICUM, Md.--(BUSINESS WIRE)--May 24, 1999-- Revenue Adjustment Taken for DistributedMedia.com Related-Party Transaction NCT Group, Inc. (OTCBB: NCTI) reported adjusted total revenue for the first quarter of 1999 was $4.2 million compared to $0.7 million in the first quarter of 1998. The Company had reported first quarter 1999 revenue of $5.8 million on April 7, 1999. During the first quarter of 1999, the Company signed a license agreement pursuant to which the Company exchanged 3,600 shares of the Company's Series E Convertible Preferred Stock ("Series E Stock") for four (4) DistributedMedia.com, Inc. Network Affiliate licenses. The exchange of shares of Series E Stock was in lieu of cash consideration. The Company anticipates the future sale of Network Affiliate licenses to approximate $1.0 million each based on defined territories. The Company has realized revenue of only $2.0 million on the issuance of such licenses in the consideration of the receipt of 3,600 shares of its Series E Stock in this, a related-party transaction. Accordingly, earlier reported results of revenue were reduced by $1.6 million from $3.6 million to $2.0 million to reflect such exchange. The Company reported an adjusted net loss of $1.5 million for the first quarter of 1999, compared to a net loss of $3.6 million for the same period a year ago. NCT Group, Inc. is a leading technology developer with an extensive portfolio of proprietary algorithms and a wide variety of product offerings for consumer, commercial and industrial applications. The Company specializes in the utilization of sound and signal waves to reduce noise, improve signal-to-noise ratio and enhance sound quality. For more information, refer to the company's World Wide Web site at http://www.nct-active.com. Cautionary Statement Regarding Forward-Looking Statements Certain statements contained in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). In order to obtain the benefits of the "safe harbor" provisions of the Act for any such forward-looking statements, the Company wishes to caution investors and prospective investors about significant factors, which among others, have in some cases affected the Company's actual results and are in the future likely to affect the Company's actual results and cause them to differ materially from those expressed in any such forward-looking statements. Investors and prospective investors should read this press release in conjunction with the Company's reports on Form 10-K and Forms 10-Q as filed with the Securities and Exchange Commission. NCT Group, Inc. (Unaudited) For the 3 months ended March 31, (In millions, except per share amounts) 1998 1999 Total revenues $0.7 $4.2 Net (loss) $(3.6) $(1.5) Net (loss) per share $(0.04) $(0.05) (a) Weighted average number of common shares outstanding 133.2 158.5 (a) Loss per share includes a deemed $5.6 million preferred stock dividend.  