ACTV Net Signs New Contracts to Deliver eSchool Online in New York City and Massachusetts.

NEW YORK--(BUSINESS WIRE)--October 8, 1998--

Agreements with New York City Board of Education and

Massachusetts Corporation for Educational

Telecommunications Worth Over $1 Million

ACTV Net, the Internet division of ACTV, Inc. (NASDAQ: IATV), today announced it has signed contracts with the New York City Board of Education and the Massachusetts Corporation for Educational Telecommunications (MCET) for the company's proprietary eSchool Online(tm) network software. The contracts have a total value of more than $1 million over the next 12 months.

Under the New York City agreement, ACTV Net will implement eSchool Online(tm) in select non-public schools for staff development and instructional applications for the elementary, middle and high school levels. In addition to the eSchool Online(tm) network software, ACTV Net will provide content development, system implementation and technical support to the schools.

Separately, the company expanded its agreement with MCET to use eSchool Online(tm) for the delivery of reading, writing and professional development programming to students, parents and teachers in economically under-served areas of the state. eSchool Online(tm) has been successfully integrated into MCET's five-year, $9.5 million Transitions Through Technologies program, a federally-funded Star Schools initiative.

eSchool Online(tm) uses ACTV's patented HyperTV technology to create virtual learning communities that seamlessly integrate streamed educational video, relevant Web content, collaborative exercises and assessment for students and educators. The Java-based software suite offers a distributed, network-based model that can be customized, updated and linked to local, state and national curriculum standards.

"We look forward to working with the New York City Board of Education and MCET to create and deliver state-of-the-art staff development and instructional content through eSchool Online(tm)," said Bruce Crowley, President of ACTV Net. "Working together, we will create new learning experiences that take full advantage of investments in technology and infrastructure."

ACTV Net delivers on the promise of the Internet by creating virtual communities with state-of-the-art educational and entertainment content. ACTV Net's patented HyperTV technology enables the convergence of video, web content and collaborative functionality to harness the power of the Internet for students, educators and consumers. According to a recent study by the trade publication Electronic Education Report, ACTV Net ranked No. 2 to The Scholastic Network in sales of K-12 online curriculum products.

eSchool Online(tm) is the first market application of HyperTV. The proprietary technologies that drive eSchool Online(tm) are applicable in a variety of educational and entertainment settings, including K-12 classrooms, universities, distance learning programs, corporate training programs and consumer homes.

ACTV Net has relationships with many of the dominant players in the educational technology field. The Washington Post Company (NYSE: WPO), a leader in supplemental education, enrichment and test preparation through its wholly-owned subsidiary Kaplan Educational Centers, holds an equity interest in ACTV, Inc. ACTV Net and Sun Microsystems (NASDAQ: SUNW) are offering large school districts and state education departments eSchool Online(tm) alongside Sun network hardware.

ACTV Net and ACTV Entertainment are divisions of New York-based ACTV, Inc., which uses patented software technologies to create state-of-the-art programming for the rapidly expanding Internet and digital television platforms. For more information, visit ACTV's web site at http://www.actv.com.

Disclaimer: 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.