ACTV, Inc. Acquires Bottle Rocket; Pioneer of Enhanced and Interactive Media Expands Capabilities with Addition of Leading Online Game and Entertainment Developer.

Business Editors

NEW YORK--(BUSINESS WIRE)--Aug. 21, 2000

ACTV, Inc. (Nasdaq: IATV) today announced that it has acquired Bottle Rocket, Inc., a New York City-based developer and distributor of interactive entertainment products for the Internet.

The acquisition immediately makes ACTV a leader in online interactive games, while adding compelling new features to ACTV's stable of proprietary enhanced media technologies, which are incorporated into the company's HyperTV(R) products and services.

Bottle Rocket, which will retain its name and operate as a wholly owned subsidiary of ACTV, Inc., creates online entertainment based on proprietary technology engines for trivia, prediction, simulation, arcade-style, and multi-player games. Terms of the transaction were not disclosed.

Major Bottle Rocket products now in development or currently online, include: FanSlam!, an Internet-based sports trivia game show for Electronic Arts; Skengle & Skengle, a Tamagotchi-style game on Noggin.com (a joint venture between Nickelodeon and Children's Television Workshop); Major League Baseball Arcade, on MajorLeagueBaseball.com; and Goal 2 Goal and Puck Blaster on NHL.com. Other Bottle Rocket clients include StarMedia, The Sporting News, and USA Networks.

"The Bottle Rocket team, led by Greg Easley, Ned Moulton and Gib Chapman, has a proven track-record of developing entertaining, state-of-the-art products and `sticky' content that have attracted major, brand-name clients and hundreds of thousands of registered users," said William C. Samuels, chairman and CEO, ACTV, Inc. "With their continued leadership, we're eager to integrate Bottle Rocket into our company."

Greg Easley, who will continue as CEO of Bottle Rocket, said, "ACTV has been one of the true visionaries of the enhanced and interactive TV world. We believe that our combined resources will enable us to expand our leadership in online interactive games, while offering TV networks, programmers and advertisers a compelling feature that can vastly improve the effectiveness of their Web-based and enhanced media initiatives."

William A. Frank, Executive Vice President of ACTV, Inc., noted, "Multi-player, online games represent a rapidly growing business that attracts a younger demographic and a significant female audience. We believe that these type of play-along applications are an important addition to our enhanced media capabilities which will enable us to provide our clients with an unparalleled suite of convergence products and services." Mr. Frank recently joined ACTV as Executive Vice President and will be responsible for the oversight and integration of Bottle Rocket.

ACTV's HyperTV products and services enable broadcast networks and cable programmers and advertisers to automatically deliver compelling interactive Web content, Web-based advertising, e-commerce, chat and other Web-based features that can be synchronized to correspond with a live or pre-recorded video and/or audio program.

ABOUT BOTTLE ROCKET, INC.

Founded in 1996, Bottle Rocket, Inc. is a New York City-based developer and distributor of interactive entertainment products for the Internet. It creates customized online entertainment based on proprietary technology engines for trivia, prediction, simulation, arcade-style, and multi-player games.

Since its inception Bottle Rocket has developed over 40 licensed entertainment products, attracting more than 600,000 registered users and over 150 million page views in the past 18 months. Among the company's major clients are ESPN, MTV, Home Box Office, Madison Square Garden, National Football League, and Anheuser Busch.

ABOUT ACTV, INC.

ACTV, Inc. (Nasdaq: IATV), with headquarters in New York City, pioneered enhanced media with its patented convergence technology, which it incorporates into products and services that are marketed under the brand name HyperTV(R). The company also created interactive one-to-one digital television with its proprietary One To One TV(TM) software and programming services.

ACTV has developed a portfolio of 21 issued and pending patents that broadly cover the core methodologies for enhancing television, radio and other audio visual programming with an array of synchronous and non-synchronous Internet-based functions.

ACTV has key strategic relationships with many of the dominant players in the Internet, television and digital technology fields, including Liberty Digital, Inc. (Nasdaq: LDIG), Motorola (NYSE: MOT) Broadband Communications Sector, and Liberty Livewire Corporation (Nasdaq: LWIRA). For more information, visit ACTV's Web site at http://www.actv.com or visit http://www.HyperTV.com.

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks defined in this document and in statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.