ACTV, INC. and David Sarnoff Research Center enter into collaborative agreement; Companies will jointly develop new digital products; agreement follows landmark pact with CNN to develop individualized news programming for InTV.

will accelerate the development of individualized television products, ACTV, Inc. (NASDAQ:IATV) and the David Sarnoff Research Center have agreed to jointly collaborate on a number of projects designed to combine Sarnoff's strong capabilities in system and hardware design with ACTV's unique individualized programming technology, according to William C. Samuels, Chairman and CEO of ACTV.

"We believe that the ACTV approach to television is creating a new category for viewers: individualized programming," said Dr. Curtis R. Carlson, Sarnoff's Executive Vice President, Interactive Systems Division. "This cost-effective application is starting to stand out from the trials currently being conducted, none of which individualizes content the way that ACTV does. This combination of Sarnoff's expertise and ACTV's enabling software offers the potential to greatly expand the `individualized' category which ACTV has pioneered."

"The David Sarnoff Research Center is a world-class leader in the development of advanced television technologies," said Mr. Samuels. "Given Sarnoff's involvement in the development of the new digital platforms for both DBS and HDTV, our collaborative efforts will greatly accelerate ACTV's expansion as a national programming technology. Our agreement with Sarnoff marks the second major endorsement by an important and respected media concern in as many weeks. Following on the heels of the announcement of our landmark programming agreement with CNN to individualize news and other shows for our InTV regional network, this collaboration with Sarnoff is indicative of the fact that ACTV's individualized television technology is on the verge of exploding onto the national marketplace."

Last week ACTV announced its agreement with CNN, the world's leading 24-hour, global news and information television network. CNN also negotiated the right to be InTV's exclusive national news provider. Under the terms of the agreement, ACTV and CNN will create individualized versions of Prime News for the InTV Network, a Los Angeles-based regional evaluation. Plans call for the future introduction of individualized versions of other programs, including Sports Tonight, Inside Politics, Moneyline, Show-Biz Today and Talkback Live. CNN joins Prime Sports-West, a division of Liberty Sports, the operator of the nation's largest regional sports network, in providing programming for InTV.

In addition to playing a key role in the development of the technology used by Direct TV in its recent DBS launch, Sarnoff has developed compression technologies, video server technology, 3D television applications, and distance learning technologies. The Sarnoff Research Center is serving as the lead research team for the "Grand Alliance" in the development of standards for HDTV (High-Definition Television).

ACTV, which recently launched its second individualized regional network, InTV, in Southern California, has been a leader in individualized television for over five years. Its individualized programming technology has been in successful operation in Le Groupe Videotron's Montreal and London, England cable systems with over a quarter of a million subscribers. InTV which was launched in May, is currently in the midst of a successful content evaluation in Southern California.

The company has also been at the forefront of the distance learning revolution having been in hundreds of classrooms across the country for the past two years. ACTV also recently announced an agreement with the State of Georgia to supply its distance learning products to the state's GAMS system.

The David Sarnoff Research Center, a subsidiary of SRI International, conducts research in consumer electronics, solid state physics, materials science and communications. Sarnoff's expertise includes software and digital IC design, process and materials research, digital signal processing hardware and software, electromechanical devices, and displays.

ACTV's programming software provides individualized television for distance learning, cable and entertainment that is capable of altering on-screen audio and video through both single- and multiple- channel applications. By utilizing a simple remote control, an individual is able to talk to on-screen instructors or alter program content to suit specific needs and interests.

CONTACT: William C. Samuels

President

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Robert Becker

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