CBS News and Princeton Video Image Announce a Multi Year Deal for Insertion of Virtual Images in CBS' the Early Show.

LAWRENCEVILLE, N.J.--(BUSINESS WIRE)--Nov. 3, 1999--

First Use of Virtual Insertions in Daily Programming

CBS News, a division of CBS Corporation (NYSE: CBS), and Princeton Video Image, Inc. (NASDAQ: PVII, www.pvi-inc.com), have announced a multi-year agreement under which CBS News will use PVI's virtual imaging technology to provide branding for CBS News' The Early Show in various New York City scenes shown during the program. This will be the first time PVI's Live Video Insertion System (L-VIS(TM)) has been used in daily weekday programming. CBS also plans to use the patented technology to create promotions for other CBS News programs.

Steve Friedman, Executive Producer of The Early Show said, "PVI's virtual imaging technology allows us to extend our brand beyond traditional borders. Our new neighborhood in mid-town Manhattan gives us countless opportunities to do so."

Bill Jarr, Executive Director of Broadcast Sales for PVI commented, "We are very pleased to be working with CBS News, Steve Friedman, and the production staff of The Early Show to make virtual insertion an integrated staple of broadcast production."

Dennis Wilkinson, President and Chief Executive Officer of PVI, said, "This is a tremendous development for PVI. This inaugural use of virtual insertion in a daily weekday program illustrates the growing acceptance and appeal of PVI's virtual imaging products in news and entertainment programs."

PVI's imaging system has been used to insert enhancements and commercial messages in hundreds of live and recorded events worldwide this year, including NFL preseason and Europe League games, Major League Baseball games, professional soccer matches, motorsports and thoroughbred horse races. PVI is also the exclusive provider of virtual advertising for NFL International.

Princeton Video Image, Inc., the global leader in virtual advertising solutions for television, has developed, and is marketing, a real-time video insertion system that, through patented pattern recognition technology, places computer-generated electronic images into television broadcasts of sporting events as well as other programming. These electronic images range from simple corporate names and logos to sophisticated 3-D images and animated effects. PVI has provided video insertion services for over 1,200 live telecasts worldwide, including broadcasts of Major League Baseball, National League Football, professional soccer, motor sports, and other live events. The Company is headquartered in Lawrenceville, New Jersey, with offices in New York City and Brussels, as well as licensees' offices in Madrid, Mexico City and Johannesburg.

Any statements contained in this press release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties including, but not limited to, those relating to market acceptance, dependence on strategic partners and third party sales, contractual restraints on use of PVI's technology, a rapidly changing commercial and technological environment, competition, possible adverse regulations, need for additional financing, intellectual property rights and litigation, and other risks identified in PVI's filings with the Securities and Exchange Commission. Actual results, events or performance may differ materially. PVI undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.