ACTV Entertainment Reports On Progress Of "Individualized Television" -- David Reese Leads Off Panel at CTAM of Texas Digital Forum.

NEW YORK--(BUSINESS WIRE)--Oct. 19, 1998--Addressing a conference on new digital cable technologies, ACTV Entertainment President David Reese said recent events have positioned ACTV, Inc. (NASDAQ: IATV), through its proprietary "Individualized Television" digital programming capabilities, as a leading content provider for the cable industry's digital initiative.

At the conference, sponsored by the Texas chapter of Cable & Telecommunications: A Marketing Society (CTAM of Texas) and held at TCI Cable's offices in Dallas, Reese spoke about the implications of ACTV's recently announced alliance with Liberty Media Corporation and reported key accomplishments resulting from the pre-launch phase of FOX Sports Net Plus, ACTV's first regional digital network.

"Our relationship with Liberty Media will have a powerful impact on ACTV's growth, in addition to their financial investment," said Reese. "First, our new joint venture (LMC IATV Events, LLC) will enable us to explore the distribution of our one-of-a-kind marquee programming to a much broader base of digital homes. Second, we have additional financial resources to move forward with the consumer launch of our regional networks, starting in FOX Sports Southwest's five-state viewing region. ACTV is now recognized as a formidable leader in digital programming."

Reese also reported on the progress of FOX Sports Net Plus' pre-launch phase. FOX Sports Net Plus, produced with FOX Sports Southwest, is ACTV's first "Individualized Television" regional digital network featuring programming enhanced by the company's patented technologies.

Reese outlined the following accomplishments:

-- ACTV, in conjunction with FOX Sports Southwest, produced and digitally-delivered more than 75 live sporting events on FOX Sports Net Plus to a select number of digital homes in TCI's Dallas system. Response to the unique combination of compelling programming and unobtrusive technology was enthusiastic.

-- Completed regional uplink and delivery of ACTV-enhanced programming via satellite to cable operators throughout FOX Sports Southwest's viewing region, which comprises approximately five million households.

-- Assembled an experienced production crew, led by Brent Imai, Vice President of Programming, and Ed Pete, Director of Programming and Operations. Imai was one of the original creators of the Prime Ticket Network (now FOX Sports West), while Pete was Director of Programming and Operations for Liberty Sports' broadcast television division, and Programming Manager for Prime Network.

-- Developed, refined and finalized all aspects of regional production in conjunction with FOX Sports Southwest, including graphic and video elements of game coverage.

-- Began development of a joint marketing plan with TCI and FOX Sports Southwest -- including production of on-air promotional spots for FOX Sports Net Plus -- to introduce ACTV's new digital network to consumers.

Commenting on pre-launch activities, Reese said: "We've achieved all of the goals we set out to accomplish in Dallas and, most importantly, have now broadened our business plan. As a result of our new partnership with Liberty Media, and at the urging of industry leaders, we are working to fully integrate our digital programming capabilities with the systems used for the nationwide satellite delivery of digital cable programming content. Once that process is complete, we will not only be able to make `Individualized Television' available to consumers in FOX Sports Southwest's viewing region, but also to digital homes across the entire nation. We believe the ability to reach a national audience represents a lucrative opportunity for ACTV and offers a strong foundation for growth."

ACTV uses patented software technologies to create "Individualized Television," which takes traditional television programming into the digital age. "Individualized Television" demonstrates the exciting potential and real power of digital TV. The software remembers viewer commands and responses to on-screen prompts, enabling the television to "talk back" to each individual viewer with viewer-directed and viewer-targeted programming content.

ACTV's "Individualized Television" also allows the viewer to choose which advertisement they wish to see at a commercial break, while offering advertisers the ability to deliver individually-targeted commercials to consumers. All that is needed in the home is a standard digital set-top box and remote control.

"Individualized Television" can enhance a variety of television genres, including sporting events, news, game shows, children's programming and advertising. ACTV can offer consumers compelling and differentiated high quality digital programming content; provide cable operators with a valuable marketing tool and revenue source; and offer the advertising community one of the most powerful addressable media vehicles for reaching consumers in an increasingly fragmented television environment.

ACTV has relationships with the major players in cable and television, as well as the leaders in digital technology, including Liberty Media Corporation (NASDAQ: LBTYA, LBTYB -- an investor and partner in a new joint venture), General Instrument Corporation (NYSE: GIC -- an investor and marketing partner), FOX Sports Net (a joint venture between FOX/Liberty Networks and Cablevision's Rainbow Media Holdings, Inc.), Cablevision's (AMEX: CVC) Rainbow Sports, The Washington Post Company (NYSE: WPO -- an investor), and The Sarnoff Corporation.

Based in New York City, ACTV uses patented technologies to create state-of-the-art programming for the rapidly expanding digital TV and Internet platforms. ACTV Entertainment and ACTV Net are subsidiaries of ACTV, Inc. The company's Web site can be found at http://www.actv.com

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