SECURITIES AND EXCHANGE COMMISSION
                      WASHINGTON D.C. 20549 CURRENT REPORT

                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                        SECURITIES EXCHANGE ACT OF 1934
                          DATE OF EARLIEST REPORT

                                APRIL 11, 2006
                        (DATE OF EARLIEST EVENT REPORTED)




             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


                          NEW MEDIUM ENTERPRISES, INC.



STATE  OR  OTHER  JURISDICTION  OF                  (I.R.S.  EMPLOYER
INCORPORATION  OF  ORGANIZATION)                    IDENTIFICATION


             11-3502174                                         NEVADA




       (ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING ARE
            CODE, OF REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)


                               MAHESH  JAYANARAYAN,  CEO
                                  195  The  Vale
                                  London  W3  7QS
                            Tel:  011  44  208  746  2018
                            Fax:  011  44  208  749-8025


     Item 1.01 Entry Into a Material Definitive Agreement.

     On  April  11,  2006  New  Medium  Enterprises,  Inc.  entered  into  a
     Memorandum  of Understanding, subject to legal contract, to purchase 51% OF
     MPEG Technology Company Ltd, a privately held trading company in Hong Kong,
     for  certain  considerations as outlined in the Memorandum Of Understanding
     dated April 11, 2006 Item 101a.



     Signature:

     Pursuant  to  the  requirements  of  the  Securities  Exchange Act of 1934,
     the  Registrant  has  duly caused this report to be signed on its behalf by
     the undersigned hereunto duly authorized.




New  Medium  Enterprises,  Inc.
-------------------------------
(Registrant)


By:  /s/  Mahesh K. Jayaranayan, President and Chief Executive Officer


APRIL 21, 2006

ITEM 101.a

     MEMORANDUM  OF  UNDERSTANDING  SUBJECT  TO  LEGAL CONTRACT DATED 11TH APRIL
     2006

Parties to the agreement

     1.New  Medium  Enterprise  Inc,  a  US  public  limited  technology company
     traded  on  the  OTC  Exchange  and  registered  in the State of Nevada and
     hereinafter referred to as the 'buyer'


     2.MPEG  Technology  Company  ltd,  a  private limited company registered in
     Hong  Kong  and  whose main line of business is the design, manufacture and
     the  trading  of  digital  AV  products,  components  and  equipment  and
     hereinafter is referred to as the 'seller'.

Background

     1.New  Medium  Enterprises  Inc  is  a publicly quoted US company listed on
     the  OTC  and trading under the symbol NMEN.OB. NME is aimed at positioning
     itself  as a technology leader in the field of High Definition (HD) digital
     storage.  NME is offering the film, entertainment, video gaming and storage
     industries  a  total solution including thwarting video piracy. The Company
     has  developed  the  Versatile  Multilayer  Disc  (VMD),  a technologically
     advanced red laser optical storage disc that has capacities ranging from 20
     to  40GB. The technology has the capability of up to 100GB of data storage,
     which  is  20  fold  the  capacity  of  existing  DVD discs. For additional
     information  about  NME,  please  consult  the  Company's  website  at:
     www.nmeinc.com.

     2.MPEG  Technology  Company  ltd  is  a  privately  held trading company in
     Hong  Kong  currently  with  a turnover of approximately US $ 9 million and
     with  a profit of approximately 5% or US $ 400k. Their mainline business is
     the  design, manufacture and the trading of digital AV products, components
     and  equipment which include the sale of high end electronic chip boards to
     the  DVD  and  electronic  home entertainment ODM sector in mainland China,
     Taiwan and other leading South East Asian companies.

The parties agree to the following

MPEG Technology Company ltd obligation

     1. It will carry on managing the day to day operations of the company

     2.aggressively  market  and  promote  VMD  and  EVD  technology  but  not
     exclusively.

     3.  Conduct,  negotiate  and  sell  products  achieving the highest margins
     possible

     4. Endeavour to meet its minimum revenue target of 9 million $ in 2006

     5.  Endeavour  to  meet  its  minimum profit forecast of 5% or US $ 400k in
     2006

     6.  Promote  and  enhance  the  business  in  special  end  products  which
     incorporate  VMD  and  EVD  technologies  e.g. PVRs, DVD players to include
     portable, IPTV, PMP, Home Digital theatre products etc.

     7.  To  work  closely  with  NME's  and  EVD's R&D team and provide support
     to  the product development from its associate company in Shenzhen, China -
     Shenzhen MPEG Electronics Co Ltd.



NME obligation

     1.  NME  agrees  to  buy  51  %  of  MPEG  Technology  Company  Ltd for the
     following consideration.

     1.1.  Pay15  million  fully  paid  up  1  year restricted shares at time of
     contract

     1.2.  Pay  a  sum  of  US  $  1.25  million  in  cash  in  the  following
     instalments

     a.  At  the  time  of  contract  a sum of US $ 312,500 or the equivalent in
     tradable  shares  valued  at  10%  discount  as  per  the discretion of the
     'seller'

     b.  Pay  the  balance  sum  in  4  equal  instalments  in cash US $ 234,375
     each  quarter  from contract date if the 'seller' maintains his revenue and
     profit  performance  as described under clause Performance and profits. The
     'seller'  has  the  right  to take tradable shares at a 10% discount at his
     discretion in lieu of cash consideration.

     1.3.  Invest  a  sum  of  US  $  1.25  million  in  cash  in the company as
     working capital to fund the order book at the time of contract. This amount
     is to be invested at the time of the contract.

     1.4.  Further  grant  the  'seller'  a  management  performance fee subject
     to  it meeting revenue target of US $ 10 million and profit of 5 % or 500k.
     The  performance  bonus  will  be  1  million  of warrants at the following
     exercise  price a.250,000 shares @ 0.20 cents b.250,000 shares @ 0.30 cents
     c.250,000 shares @ 0. 35 cents d.250,000 shares @ 0. 40 cents

     1.5  Further  NME  guarantees  that  it  will  pay the 'seller' 20 % of the
     net  profits at the end of the financial year for managing the business and
     meeting  its  revenue  and  profit  targets as described in Performance and
     Profits forecasts.

     1.6  Dividend  policy  -  the  company  will  pay  out dividends only after
     the third year.

     1.7  In  the  event  of  a  sale  of  the  company  before  three years the
     investment  and  retained  profits  will  be shared according to the equity
     holding.

     The  agreement  will  not  come  into force until items 1.1, 1.2., 1.2a and
     1.3 are fulfilled.

     If  for  some  reason  item  1.2b  cannot  be  met on time the 'seller' has
     the  right  to  withdraw  this  amount  from  the initial investment in the
     company.

     NME  acknowledges  and  agrees  that  the current retained profits and cash
     values  prior to this transaction in the company of MPEG Technology will be
     paid out to the current shareholders.as a distribution

     MPEG  Technology  Company  will  undertake  and  guarantee that the company
     at  the time of the contract will have no liabilities or obligations to the
     current  shareholders or third parties except for the purchase order amount
     outstanding to Sigma Designs ltd of US $ 800k .

     NME  agrees  to  that  the  current shareholders will repay themselves US $
     800k  from  the  initial  investment  of  US  $  1.25  million  subject  to
     confirmation of this payment ot Sigma Designs by themselves.

     Other Issues

     Board  control  -  NME  will  vest  board  control  in  the  hands  of  the
     current  board.  However it will have the right to appoint one board member
     or  1/3rd  of  the board. NME will exercise its right of control if targets
     and profits are not met.

     Right  to  shares,  cash  compensation  and  warrants. - NME will also have
     the  right  to  withdraw  or  re-negotiate  its  offer  of shares under the
     following circumstances.

     1. Gross mismanagement or untoward events in the company


     2. Failure to comply with corporate regulatory issues and authorities


     3.  Engage  in  other  unrelated  business  through  the  company  without
     prior permission from NME main board.

     Performance and Profits

     1.  Performance  will  mean  meeting  the  minimum targets to be which will
     represent  75  % of the current turnover of US $ 9 million and profits of $
     400k



     The  above  will  form  the  basis of the agreement between the parties and
     will be subject to legal contract and Board approval on both sides.

     The  parties  agree  to  complete  this contract / agreement within 14 days
     from this date.

     The  contract  will  be  subject  to  Hong  Kong jurisdiction if acceptable
     to NME lawyers.


Signed


Director
MPEG Technology Company ltd




Signed



CEO
New Medium Enterprises Inc


<
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{"company-data": {"conformed-name": "NEW MEDIUM ENTERPRISES INC", "cik": "0001126983", "assigned-sic": "3695", "irs-number": "113502174", "state-of-incorporation": "NV", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-32779", "film-number": "06772089"}, "business-address": {"street1": "195, THE VALE", "city": "LONDON", "state": "X0", "zip": "W3 7QS", "phone": "011 44 870 22 46868"}, "mail-address": {"street1": "195, THE VALE", "city": "LONDON", "state": "X0", "zip": "W3 7QS"}}
SECURITIES AND EXCHANGE COMMISSION
                      WASHINGTON D.C. 20549 CURRENT REPORT

                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                        SECURITIES EXCHANGE ACT OF 1934
                          DATE OF EARLIEST REPORT

                                APRIL 11, 2006
                        (DATE OF EARLIEST EVENT REPORTED)

             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

                          NEW MEDIUM ENTERPRISES, INC.

STATE  OR  OTHER  JURISDICTION  OF                  (I.R.S.  EMPLOYER
INCORPORATION  OF  ORGANIZATION)                    IDENTIFICATION

             11-3502174                                         NEVADA

       (ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING ARE
            CODE, OF REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)

                               MAHESH  JAYANARAYAN,  CEO
                                  195  The  Vale
                                  London  W3  7QS
                            Tel:  011  44  208  746  2018
                            Fax:  011  44  208  749-8025

     Item 1.01 Entry Into a Material Definitive Agreement.

     On  April  11,  2006  New  Medium  Enterprises,  Inc.  entered  into  a
     Memorandum  of Understanding, subject to legal contract, to purchase 51% OF
     MPEG Technology Company Ltd, a privately held trading company in Hong Kong,
     for  certain  considerations as outlined in the Memorandum Of Understanding
     dated April 11, 2006 Item 101a.

     Signature:

     Pursuant  to  the  requirements  of  the  Securities  Exchange Act of 1934,
     the  Registrant  has  duly caused this report to be signed on its behalf by
     the undersigned hereunto duly authorized.

New  Medium  Enterprises,  Inc.
-------------------------------
(Registrant)

By:  /s/  Mahesh K. Jayaranayan, President and Chief Executive Officer

APRIL 21, 2006

ITEM 101.a

     MEMORANDUM  OF  UNDERSTANDING  SUBJECT  TO  LEGAL CONTRACT DATED 11TH APRIL
     2006

Parties to the agreement

     1.New  Medium  Enterprise  Inc,  a  US  public  limited  technology company
     traded  on  the  OTC  Exchange  and  registered  in the State of Nevada and
     hereinafter referred to as the 'buyer'

     2.MPEG  Technology  Company  ltd,  a  private limited company registered in
     Hong  Kong  and  whose main line of business is the design, manufacture and
     the  trading  of  digital  AV  products,  components  and  equipment  and
     hereinafter is referred to as the 'seller'.

Background

     1.New  Medium  Enterprises  Inc  is  a publicly quoted US company listed on
     the  OTC  and trading under the symbol NMEN.OB. NME is aimed at positioning
     itself  as a technology leader in the field of High Definition (HD) digital
     storage.  NME is offering the film, entertainment, video gaming and storage
     industries  a  total solution including thwarting video piracy. The Company
     has  developed  the  Versatile  Multilayer  Disc  (VMD),  a technologically
     advanced red laser optical storage disc that has capacities ranging from 20
     to  40GB. The technology has the capability of up to 100GB of data storage,
     which  is  20  fold  the  capacity  of  existing  DVD discs. For additional
     information  about  NME,  please  consult  the  Company's  website  at:
     www.nmeinc.com.

     2.MPEG  Technology  Company  ltd  is  a  privately  held trading company in
     Hong  Kong  currently  with  a turnover of approximately US $ 9 million and
     with  a profit of approximately 5% or US $ 400k. Their mainline business is
     the  design, manufacture and the trading of digital AV products, components
     and  equipment which include the sale of high end electronic chip boards to
     the  DVD  and  electronic  home entertainment ODM sector in mainland China,
     Taiwan and other leading South East Asian companies.

The parties agree to the following

MPEG Technology Company ltd obligation

     1. It will carry on managing the day to day operations of the company

     2.aggressively  market  and  promote  VMD  and  EVD  technology  but  not
     exclusively.

     3.  Conduct,  negotiate  and  sell  products  achieving the highest margins
     possible

     4. Endeavour to meet its minimum revenue target of 9 million $ in 2006

     5.  Endeavour  to  meet  its  minimum profit forecast of 5% or US $ 400k in
     2006

     6.  Promote  and  enhance  the  business  in  special  end  products  which
     incorporate  VMD  and  EVD  technologies  e.g. PVRs, DVD players to include
     portable, IPTV, PMP, Home Digital theatre products etc.

     7.  To  work  closely  with  NME's  and  EVD's R&D team and provide support
     to  the product development from its associate company in Shenzhen, China -
     Shenzhen MPEG Electronics Co Ltd.

NME obligation

     1.  NME  agrees  to  buy  51  %  of  MPEG  Technology  Company  Ltd for the
     following consideration.

     1.1.  Pay15  million  fully  paid  up  1  year restricted shares at time of
     contract

     1.2.  Pay  a  sum  of  US  $  1.25  million  in  cash  in  the  following
     instalments

     a.  At  the  time  of  contract  a sum of US $ 312,500 or the equivalent in
     tradable  shares  valued  at  10%  discount  as  per  the discretion of the
     'seller'

     b.  Pay  the  balance  sum  in  4  equal  instalments  in cash US $ 234,375
     each  quarter  from contract date if the 'seller' maintains his revenue and
     profit  performance  as described under clause Performance and profits. The
     'seller'  has  the  right  to take tradable shares at a 10% discount at his
     discretion in lieu of cash consideration.

     1.3.  Invest  a  sum  of  US  $  1.25  million  in  cash  in the company as
     working capital to fund the order book at the time of contract. This amount
     is to be invested at the time of the contract.

     1.4.  Further  grant  the  'seller'  a  management  performance fee subject
     to  it meeting revenue target of US $ 10 million and profit of 5 % or 500k.
     The  performance  bonus  will  be  1  million  of warrants at the following
     exercise  price a.250,000 shares @ 0.20 cents b.250,000 shares @ 0.30 cents
     c.250,000 shares @ 0. 35 cents d.250,000 shares @ 0. 40 cents

     1.5  Further  NME  guarantees  that  it  will  pay the 'seller' 20 % of the
     net  profits at the end of the financial year for managing the business and
     meeting  its  revenue  and  profit  targets as described in Performance and
     Profits forecasts.

     1.6  Dividend  policy  -  the  company  will  pay  out dividends only after
     the third year.

     1.7  In  the  event  of  a  sale  of  the  company  before  three years the
     investment  and  retained  profits  will  be shared according to the equity
     holding.

     The  agreement  will  not  come  into force until items 1.1, 1.2., 1.2a and
     1.3 are fulfilled.

     If  for  some  reason  item  1.2b  cannot  be  met on time the 'seller' has
     the  right  to  withdraw  this  amount  from  the initial investment in the
     company.

     NME  acknowledges  and  agrees  that  the current retained profits and cash
     values  prior to this transaction in the company of MPEG Technology will be
     paid out to the current shareholders.as a distribution

     MPEG  Technology  Company  will  undertake  and  guarantee that the company
     at  the time of the contract will have no liabilities or obligations to the
     current  shareholders or third parties except for the purchase order amount
     outstanding to Sigma Designs ltd of US $ 800k .

     NME  agrees  to  that  the  current shareholders will repay themselves US $
     800k  from  the  initial  investment  of  US  $  1.25  million  subject  to
     confirmation of this payment ot Sigma Designs by themselves.

     Other Issues

     Board  control  -  NME  will  vest  board  control  in  the  hands  of  the
     current  board.  However it will have the right to appoint one board member
     or  1/3rd  of  the board. NME will exercise its right of control if targets
     and profits are not met.

     Right  to  shares,  cash  compensation  and  warrants. - NME will also have
     the  right  to  withdraw  or  re-negotiate  its  offer  of shares under the
     following circumstances.

     1. Gross mismanagement or untoward events in the company

     2. Failure to comply with corporate regulatory issues and authorities

     3.  Engage  in  other  unrelated  business  through  the  company  without
     prior permission from NME main board.

     Performance and Profits

     1.  Performance  will  mean  meeting  the  minimum targets to be which will
     represent  75  % of the current turnover of US $ 9 million and profits of $
     400k

     The  above  will  form  the  basis of the agreement between the parties and
     will be subject to legal contract and Board approval on both sides.

     The  parties  agree  to  complete  this contract / agreement within 14 days
     from this date.

     The  contract  will  be  subject  to  Hong  Kong jurisdiction if acceptable
     to NME lawyers.

Signed

Director
MPEG Technology Company ltd

Signed

CEO
New Medium Enterprises Inc

<