ACTV'S Digital ADCO, Inc. Closes On Investment From OpenTV.Business Editors NEW YORK and MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Sept. 6, 2000 ACTV ACTV - Activate ACTV - Active ACTV - Advanced Compatible Television, OpenTV and Motorola Establish Worldwide Venture for Interactive, Targeted Digital TV Advertising ACTV, Inc. (Nasdaq: IATV) and OpenTV (Nasdaq and AEX: OPTV) today announced the completion of their previously announced agreement to join forces for the worldwide deployment of SpotOn(TM), a service of ACTV subsidiary Digital ADCO ADCO - Abu Dhabi Company for Onshore Oil Operations ADCO - Advisory Counsil ADCO - Air Defense Communications Office ADCO - Air Defense Control Center ADCO - Air Defense Coordination Organization ADCO - Alcohol & Drug Control Office ADCO - Alcohol and Drug Control Officer ADCO - Alternate Document Control Officer ADCO - Assistant Division Commander Operations. The venture is expected to bring SpotOn's One to One Television Advertising(TM) capabilities to networks, advertisers and consumers worldwide. SpotOn is compatible with all of the leading digital interactive platforms and set-top terminals, including those currently deployed. OpenTV has taken a minority stake in Digital ADCO and has joined with ACTV and Motorola Broadband Communications Sector (NYSE: MOT) to create a new subsidiary named Digital ADCO International. Under the agreement, the companies - all leaders in interactive digital television (iTV) - will port ACTV's software application onto OpenTV's operating system, which has an installed base of more than 9.3 million digital set-top terminals worldwide. In addition, OpenTV will provide support for TV commerce (t-commerce) fulfillment. Financial terms were not disclosed. ACTV created its Digital ADCO subsidiary with Motorola Broadband Communications Sector to redefine traditional TV advertising. In contrast to other new technologies that allow viewers to zap out television commercials, the SpotOn service focuses on making TV advertising more meaningful and useful for viewers. SpotOn is designed to deliver targeted commercials based on viewers' interests, allowing them to see ads that are truly relevant while providing access to value-added information and special offers from the advertisers. Digital ADCO's goal is to dramatically improve the effectiveness of TV advertising and, for the first time, bring real accountability to an advertiser's media buy. "We're eager to aggressively move forward with ACTV and Motorola," said Jan Steenkamp, OpenTV's CEO. "SpotOn enhances the commercial appeal of iTV to viewers, allowing them to receive advertisements that address their individual interests. This also better enables advertisers to target and measure the effectiveness of commercials; and it encourages television network operators worldwide to generate t-commerce revenues through interactive television." William C. Samuels, Chairman and CEO of ACTV, Inc., commented, "We can deliver the SpotOn service today, unleashing the power of those digital set-tops that are already widely deployed. The leading-edge technology that is at the heart of our SpotOn service will create a paradigm shift in TV advertising that will benefit advertisers, operators and viewers alike. This relationship between ACTV, OpenTV and Motorola will help advance the future of digital TV." "Digital ADCO is pleased to begin its expansion with the addition of OpenTV and the formation of Digital ADCO International," noted Richard Smith, Corporate Vice President & Director, Business Development of the Motorola Broadband Communications Sector. "By leveraging the assets of Motorola, OpenTV, and ACTV, Digital ADCO can provide advertisers with unmatched value and accountability for their media dollars. At the same time, we can improve the consumer experience by cutting through the clutter of television advertising to deliver commercials that make sense for a specific household." By 2002, Forrester Research, Inc. estimates that "smarter television" will enable 21 million U.S. households to interact with TV programs and advertising. By 2005, "smarter television" will create a new $25 billion revenue stream, including $17 billion from advertisers and $7.4 billion in subscription fees. TV-based commerce will add another $23 billion in five years. Kevin Liga, iCEO of Digital ADCO and ACTV's Chief Technology Officer, added: "Since announcing our letter of intent in May, our technology teams have been working to port our One To One TV(TM) software application onto OpenTV's system. OpenTV's wide international distribution has established it as a standard-bearer for iTV throughout the world. SpotOn delivers incredible value on all fronts - for advertisers, customers and operators - and we're thrilled to expand its reach worldwide with industry leaders Motorola and OpenTV." About SpotOn(TM) SpotOn is the only end-to-end, software-based and TV-centric system that enables the delivery and accounting of highly targeted and interactive advertising, featuring full-motion video, unlike HTML-based services. SpotOn allows viewers to choose and interact with television commercials; it empowers advertisers to deliver commercials to households most likely to respond to them (based on demographic or household-specific profiles); and it allows television network operators to generate new TV commerce revenues. SpotOn can be delivered via digital cable, digital satellite, or digital broadcast television. SpotOn is founded on an array of system technologies, including ACTV's patented One To One TV(TM) software and Motorola's digital interactive platform. SpotOn services are provided to cable and satellite system providers, advertising interconnects, broadcast and cable television networks and programmers, and leading consumer product advertisers, advertising agencies, and media buyers. For more information, visit http://spoton.actv.com. About OpenTV OpenTV is the leading worldwide provider of software that enables digital interactive television. OpenTV's software platform provides a comprehensive solution for the development and delivery of digital interactive services by network operators to television viewers. The OpenTV solution includes its operating middleware, applications, software tools, and consulting services expertise and strategic consulting. OpenTV software has been shipped with or installed in more than 9.3 million digital set-top boxes worldwide and has been selected by 34 digital cable, satellite and terrestrial communications networks in over 50 countries, including BSkyB in the United Kingdom; TPS and Noos in France; PrimaCom in Germany; Via Digital in Spain; GLA, the exclusive provider of DIRECTV(TM) in Latin America; and EchoStar's DISH Network in the U.S. In addition, 29 digital set-top box manufacturers have licensed OpenTV's software, and OpenTV's authoring tools are licensed to more than 500 independent developers and content service providers. Worldwide headquarters for OpenTV is located in Mountain View, Calif. Information on OpenTV is available at www.opentv.com. About ACTV, Inc. ACTV, Inc. (Nasdaq: IATV), with headquarters in New York City, pioneered enhanced media with its patented convergence technology, which it markets 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 capabilities. SpotOn(TM), the advertising application of One To One TV(TM), is a service of Digital ADCO, Inc., a subsidiary of ACTV, Inc. ACTV has developed an extensive patent portfolio that broadly covers the core methodologies for enhancing television, radio and other audio visual programming with an array of synchronous and non-synchronous Internet-based functions, and for the creation and delivery of interactive, one-to-one digital television. 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, OpenTV (Nasdaq and AEX: OPTV), and Liberty Livewire Corporation (Nasdaq: LWIRA). For more information, visit http://www.actv.com or 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. |
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