ACTV extends distance learning contract with Georgia and announces agreement in Texas.

NEW YORK--(BUSINESS WIRE)--Nov. 11, 1996--

Deals account for more than $1 million in sales

Patent granted for distance learning system

ACTV Inc. (NASDAQ:IATV), a leader in the field of individualized television for education, has announced new distance learning agreements with the states of Georgia and Texas which will account for more than $1 million in revenue.

The revenue from these sales represents 85 percent of the company's sales for all of 1995.

Simultaneous with these announcements, ACTV has been granted its 12th patent from the U.S. Patent Office. Patent No. 5,537,141 is for ACTV's Distance Learning System Providing Individual Television Participation, Audio Responses And Memory For Every Student.

The first new agreement, with the state of Georgia, comes after the successful completion of ACTV's first project for that state. That project saw the installation of ACTV's individualized distance learning system into the Georgia Statewide Academic and Medical System (GSAMS).

The two content creation sites focused on middle school Spanish and science as well as graduate-level health sciences instruction. The second project will see the addition of Georgia Tech to the content creation team which includes Georgia State University and ACTV.

Additionally, the project will feature expanded content creation capabilities through the addition of three more sites, and will focus on K-12 science courses and adult education. The project will serve 45 schools across the state of Georgia, 37 of which will receive the programming via satellite.

Additionally, ACTV has announced an agreement with the state of Texas' Workforce Commission, which is charged with employment and job training for Texans. The ACTV Individualized programming system will allow the commission's field training staff to develop customized television content for staff development in 37 cities, from Amarillo to San Antonio to Waco.

A unique element of the system is that it will allow clients to be evaluated in English or their native language, assuring equitable participation for all clients in the program.

According to Bruce J. Crowley, president of ACTV Interactive: "These two new distance learning sales provide us with a solid platform from which to dramatically expand our distance learning efforts.

"ACTV's new distance learning and Java-based Internet products will account for significant growth and revenue for our education business over the next 12 months. Our proposal backlog is growing rapidly, and we fully expect 1997 to be a year of dynamic growth."

In addition to the individualized features of the software, ACTV will be able to supply the distance learning teacher with empirical data in real time via a telephone return path and will provide teachers at the remote site with a printout of students' performances at each individual site so that follow-up can be provided. Remote sites will also be able to record the interactive programming on a conventional VCR for later use.

ACTV's programming technology provides individualized television for distance learning and cable that is capable of altering on-screen audio and video through both single- and multiple-channel applications. By utilizing a simple remote control, the student is able to talk to on-screen instructors and alter program content to suit specific needs and interests.

ACTV's individualized programming technology is deployable today over existing cable and satellite systems. There is no need to rebuild or create a new infrastructure.

CONTACT: ACTV Inc., New York 

William C. Samuels, 212/262-2570

or

Richmont Consulting International, Los Angeles

Edda Brown, 213/658-8088