ACTV's HyperTV Networks & The Box Music Network to Offer Groundbreaking TV-Internet Convergence Music Programming Service.

NEW YORK & MIAMI BEACH, Fla.--(BUSINESS WIRE)--June 3, 1999--

New Collaborative Service from the Pioneers of

Convergence & Interactivity

HyperTV Networks, Inc., a subsidiary of ACTV, Inc. (NASDAQ:IATV), and The Box Music Network, a subsidiary of TCI Music, Inc. (NASDAQ:TUNE, TUNEP), today announced an alliance to create programming that will integrate HyperTV(TM), ACTV's patented software solution for the convergence of television and the Internet, with The Box Music Network's 24-hour-a-day interactive music television programming. The new ACTV/The Box service will be demonstrated at The Box Music Network's booth No. 4749 and at ACTV's booth No. 2154 during Cable '99, the National Cable Television Association (NCTA) annual convention, being held the week of June 13th in Chicago, Illinois.

The alliance will enable The Box Music Network to extend its brand identity by synchronizing the delivery of relevant Web material, Web-based advertising messages, e-commerce and chat in order to broaden the experience of each viewer while generating new revenue streams for the network. The collaborative effort will result in an unrivaled service that utilizes the patented HyperTV system to deliver the most powerful TV-Internet convergence programming experience ever available, featuring a full slate of interactive music programming.

With HyperTV, for example, The Box Music Network's viewers will be able to log-on to a Web site and automatically receive synchronized Web material that directly corresponds to the music video they are watching. This Web material can include song lyrics, band member biographies, features on different band members, and interactive trivia questions about the artist, while promoting online purchases of compact discs, videos or music-related apparel. During a commercial break, an advertisement for an automobile can be enhanced by delivering information from the manufacturer's Web site or a local dealer where viewers can receive more information or schedule test drives. The increased interactivity will enhance the current PC/TV convergence available to The Box's viewers. The network pioneered technology which already allows viewers to access a local playlist on the Web and order a video for play on TV.

"We believe this new initiative with ACTV's HyperTV is a logical extension of the direction we've been heading. Working together, we will deliver richer content and superior entertainment to our viewers, while offering advertisers unparalleled enhanced advertising, e-commerce and branding opportunities," said Alan McGlade, President and Chief Executive Officer, The Box Music Network.

"ACTV invented TV-Internet convergence when we created HyperTV more than three years ago, and The Box has always been ahead of the industry in terms of interactivity. Ours is a natural and potentially powerful alliance," said David Reese, President and Chief Operating Officer, ACTV, Inc. "The Box's large built-in audience is demanding an improved interactive and convergent programming experience today. Together, HyperTV and The Box will meet that demand."

The Box Music Network, the only interactive 24-hour all music network, reaches more than 40 million households worldwide including the U.S., Europe, and Latin America. The Box (http://www.thebox.com) presents the newest and most diverse selection of music on television through the use of 150 digital file servers throughout the U.S. The network originates programming uniquely tailored to each market it serves and provides viewers with an option to call in or go online to request a video from a menu of up to 200 selections. Viewers can also simply watch the videos as programmed and access The Box free of charge.

ACTV, Inc., is a leader in interactive digital television with its proprietary "Individualized Television" software and programming capabilities, and a pioneer of TV-Internet convergence programming with its patented HyperTV(TM) software application. ACTV offers superior, yet practical solutions for television programmers, advertisers, cable operators and consumers looking to leverage the emergence of digital television and broadband technology. The Company is committed to improving the television and Internet experience for consumers by enabling the creation of more compelling content, while allowing programmers, advertisers and others to establish valuable one-to-one relationships with consumers.

ACTV has relationships with many of the dominant players in the Internet, television and digital technology fields, including: Liberty Media Group (NYSE:LMG.A, LMG.B); AT&T Broadband & Internet Services (formerly Tele-Communications, Inc. - NYSE:T); General Instrument Corporation (NYSE:GIC); Sun Microsystems (NASDAQ:SUNW); FOX Sports Net; TCI Music, Inc. (NASDAQ:TUNE, TUNEP); TV Guide Networks, Inc. (NASDAQ:TVGIA); Scientific-Atlanta, Inc. (NYSE:SFA); Pioneer Digital Technologies, Inc.; SkyConnect, Inc.; Cablevision's Rainbow Sports; and The Sarnoff Corporation. In September 1998, ACTV Entertainment and Liberty Media formed a joint venture, LMC/IATV Events, LLC. ACTV Entertainment and HyperTV Networks, Inc., are subsidiaries of ACTV, Inc. For more information, visit ACTV's Web site at http://www.actv.com.

(Addendum to ACTV/The Box release)

HYPERTV(TM): LEADING THE WAY TO CONVERGENCE

ACTV's patented HyperTV convergence software provides viewers with a richer interactive experience and allows them to become part of a dynamic virtual community, while allowing programmers and advertisers to extend their brand identity, access lucrative e-commerce revenue streams, develop one-to-one relationships with viewers, and differentiate their program offerings today.

Using ACTV's proprietary methods, HyperTV uniquely enables the simultaneous and synchronized delivery of video, audio and Web URLs (Uniform Resource Locators) to consumers. HyperTV allows content producers, such as television programmers and advertisers, to automatically deliver, or "push," to consumers compelling Internet content that directly corresponds to a television program. ACTV's proprietary technology also gives viewers the option to request, or "pull," relevant Web content that augments and enriches the television program.

The HyperTV software is designed to be a browser plug-in for newer versions of either Netscape Navigator or Microsoft Internet Explorer, the most popular web browsers. To receive the plug-in, a HyperTV user registers on line, then simply downloads and installs the plug-in on his or her computer. HyperTV is software-based, without hardware, chip or platform dependency, and can operate on any of today's principal PC operating systems (Windows, Macintosh or UNIX). It is also fully compatible with analog or digital television and broadband delivery infrastructures. Programmers don't have to alter their existing delivery systems to begin providing HyperTV's enhanced content experience to their viewers.

Today, HyperTV viewers can watch video on a standard television set while viewing synchronized Web content and interacting with other users via their computer. Or, depending on a viewer's computer, and how the video is getting to that computer, viewers can see the video in a frame on their browser while complementary synchronized Web material is automatically delivered to other frames in the same browser. As the next generation digital set-top boxes, cable modems and other consumer devices made possible by advances in digital and broadband technology are deployed, viewers will be able to enjoy a HyperTV programming experience with each of the elements -- video, audio, synchronized Web content and chat -- simultaneously delivered directly to their television screen or desktop.