ARTiFACT Joins ACTV's Growing List of Interactive TV Advertising Partners; SpotOn iTV Ad Service Continues to Gain Momentum.

Business & Technology Editors

NEW YORK & LOS ANGELES--(BUSINESS WIRE)--Dec. 14, 2000

ARTiFACT, an integrated content creator and designer of interactive TV (iTV) advertising, today announced that it will work with ACTV, Inc. (Nasdaq: IATV) to support ACTV's leading-edge, proprietary software-based products and services for digital iTV and enhanced media.

The partnership will initially focus on iTV advertising initiatives that leverage SpotOn(sm), a service of the ACTV-led Digital ADCO, Inc. venture. SpotOn is an end-to-end, software-based and TV-centric system that enables the delivery and accounting of highly targeted and interactive TV advertising, featuring full-motion video. AT&T has agreed to deploy the SpotOn technology in conjunction with a project managed by AT&T Media Services. ARTiFACT and ACTV will also collaborate on projects that utilize ACTV's One To One TV(sm) and HyperTV(R) products and services. ARTiFACT will work closely with the creative team in ACTV's Los Angeles office.

"We have a firm belief in the rapidly approaching proliferation of interactive TV and we're committed to supporting our clients in this new and challenging space," said Steve Armstrong, CEO, ARTiFACT. "ACTV's technologies, especially SpotOn, are exciting to consumers and advertisers alike."

ARTiFACT's mission is to provide the advertising and entertainment industries with fresh, forward-thinking media and design solutions. Its Interactive TV module, ARTiFACT (+)iTV, is a pioneering designer of iTV ad concepts. Working with software developers and third party iTV consultants, ARTiFACT (+)iTV has conceptualized and executed dual screen and single screen solutions for such brands as Acura, ActiVision, 20th Century Fox Film Corp., Airtouch (now Verizon) and Earth Communications Office.

"ARTiFACT understands the impact SpotOn, and interactive TV in general, can have on our industry," said Art Cohen, senior vice president of ad sales and e-commerce, ACTV. "We have attracted some of the leaders in the media, entertainment, advertising and technology sectors who understand the power and ready-to-deploy nature of our technologies. We're glad to add ARTiFACT's creativity and experience to our list of partners."

ACTV created its Digital ADCO subsidiary with Motorola Broadband Communications Sector to redefine traditional TV advertising. ACTV, Motorola and OpenTV have joined forces for the international deployment of SpotOn. Other SpotOn partners include Grey Global Group, Young & Rubicam's The Media Edge, Starcom Worldwide, CYLO, Random/Order, GSD&M, Microsoft TV, Scientific-Atlanta, PowerTV, SeaChange, nCube, Qpass, Net Perceptions and Nielsen Media Research, among others.

About ARTiFACT

ARTiFACT is an integrated content creator, organized around creative teams drawn from cooperative modules: Design, Creative Editorial, Production and Interactive TV. Capitalizing on the resources of each these modules, the company works with clients to expand their message across the most appropriate mediums, both conventional and emergent.

ARTiFACT (+)iTV functions as a one stop iTV shop from concept to production and functional implementation for advertising agencies and their clients. ARTiFACT (+)iTV has strategic alliances and developer status with such leading edge companies as OpenTV, Microsoft TV, Worldgate, Liberate, Canal+, ACTV, and ActZero.

About ACTV, Inc.

ACTV, Inc.'s (Nasdaq: IATV) patented enhanced media technologies are incorporated into the company's Enhanced Media Services, Inc. subsidiary. These technologies are marketed under the brand names HyperTV(R) (http://www.hypertv.com) and Bottle Rocket (http://www.bottlerocket.com), among other products and services. ACTV also created interactive, one-to-one digital television with its proprietary One To One TV(sm) software and programming capabilities. SpotOn(sm), the advertising application of One To One TV, is a service of ACTV subsidiary Digital ADCO, Inc (http://www.spoton.tv).

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.

Based in New York City, 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.

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 companies, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the companies disclaim any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.