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"The market for secure digital distribution solutions remains very promising, with enormous dollar value and growth prospects."
——Reciprocal's John Schwarz

RECIPROCAL RESTRUCTURES, REDUCES EXPENSES

Company Cuts Staff By More Than Half, But Continues Operations
Digital Rights Management company Reciprocal has announced a restructuring that will significantly reduces the company's operating expenses "until more favorable market conditions emerge." The company will also lay off approximately 65% of its personnel, as a result.

Reciprocal, a digital commerce service provider, will continue to handle digital rights management, digital asset management and implementation services in digital media markets and for information technology infrastructure players. It has worked with Sony Music, Zomba Records and TVT Records, among others.

"The market for secure digital distribution solutions remains very promising, with enormous dollar value and growth prospects," said Reciprocal President and CEO John Schwarz. "The demand for our services has been growing 100% annually, but still not nearly as quickly as we had anticipated. Reciprocal will capitalize on its technology and market leadership and use its strong core skills and capabilities to position itself for the growth to come."

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