Alliance/Shaw partnership announces video-on-demand service.

CALGARY, Alberta & TORONTO, Ontario--(BUSINESS WIRE)--January 13, 1997--Alliance Communications Corporation (TSE: AAC.A, AAC.B Nasdaq: ALLIF) and Shaw Communications Inc. announced today that they have filed an application with the Canadian Radio-Television Communications Commission (CRTC) to provide a national Video-on- Demand (VOD) programming service in English and French. Shaw and Alliance, which bring unique synergies to introducing VOD to Canada, are equal partners and together have committed $30 million to finance the project.

VOD, a new means of combining television and digital technology in the home, permits consumers unprecedented choice and convenience while enjoying greater selection of programming. VOD frees the consumer from having to visit a retail outlet to return videotapes. The service will provide more than 500 choices of entertainment, education and information programming to Canadian viewers on a fully discretionary, on-demand basis. It will be made available to distribution undertakings with digital capability. If licenses, the service will be launched nationally by September 1998 through VOD file servers located in each region of Canada.

"The new service would provide recent-release theatrical movies, classic feature films, documentaries, and family programming from Canada and around the world to viewers at the time they choose to watch," said Phyllis Yaffe, President of Alliance Broadcasting. "Our VOD service would provide strong support for Canadian programs in our effort to seek out a wide range of titles and genres to respond to consumers desire for more choice."

"In today's competitive environment, we must continue to lead in the development of new products and technology," said Jim Shaw, Jr., President and Chief Operating Officer of Shaw Communications Inc. "Video-on-Demand represents the leading edge in using digital technology to provide an increased level of service and choice to Canadians."

Alliance Communications Corporation is Canada's largest independent film and television production and distribution company, with a major involvement in motion picture and television production and distribution and multimedia. Alliance is also the controlling shareholder of two national English-language specialty services, Showcase Television and The History and Entertainment Network.

Shaw Communications Inc. is a diversified Canadian communications company and one of the largest cable television operators in the country. With approximately 1.46 million subscribers, Shaw serves about 20 percent of the Canadian cable television market. The Company's other communications services include nine radio stations, telecommunications through Shaw FiberLink; specialty programming services YTV and CMT, and Digital Music Express. Other strategic investments include Teletoon, a national animation channel, The Comedy Network Channel, the SEGA Channel; wireless telecommunications provider Microcell; and Shaw DBS Ventures, a satellite services company.

CONTACT: Jim Shaw

Shaw Communications Inc.

403-750-4500

or

Phyllis Yaffe

Alliance Broadcasting

416-967-0022

or

Ken Stein

Shaw Communications Inc.

416-296-7373

or

George Burger

Executive Vice President

[phone]

or

Morgen-Walke Associates

Andrea Kaimowitz

Press: Miriam Adler

[phone]

or

Karen Goulet - Toronto

[phone]