Colonial Penn Insurance, Book-of-the-Month Club and Lands' End Sign as Charter Participants on IVE's U S Avenue; Diverse Interactive Content Will Offer Wide Range of Products and Services in Upcoming Trials.

SAN RAMON, Calif.--(BUSINESS WIRE)--March 28, 1995--It was announced today at the Direct Marketing Association's (DMA) 30th Spring Conference and Exhibition, that Interactive Video Enterprises, Inc. (IVE), a U S WEST Company, is further expanding and diversifying its interactive content offerings with the participation of Colonial Penn Insurance, Book-of-the-Month Club, Inc. (BOMC), and Lands' End on the company's first interactive television-based marketing and merchandising service, U S Avenue.

Today's announcement increases IVE's roster of well-recognized and diverse retailers, manufacturers, catalogers, advertisers, local merchants, and professional and skilled services companies that are collaborating with IVE. IVE's unique packaging of strong brand name identities for targeted market segments provides a rich, quality mix of merchandising categories for interactive television and other multimedia systems. These companies join other charter participating businesses already announced including Ford Motor Company, FTD, Hallmark Connections, JCPenney, Nordstrom and Richard Wolffers Auctions Inc.

U S Avenue offers consumers an entertaining and easily accessible interactive television shopping environment oriented toward the variety of today's lifestyles. U S Avenue's full-featured packaging of a wide mix of interactive options is based on extensive input from merchandisers and buyers during three and a half years of research and development. Viewers, browsers and purchasers can select the shops, products and services they want to explore, obtain information on the items they want to buy, or view entertaining lifestyle features, all when and where they choose.

"Today's announcement further demonstrates IVE's ability to attract the highest quality and most consumer-oriented companies, solidifying our leadership position in the interactive television services arena," said Andrew H. Orgel, IVE's executive vice president. "All of U S Avenue's charter participants share an exciting vision of creating new revenue streams, opening new communications channels and expanding their customer bases."

Colonial Penn Insurance

"This is Colonial Penn's first venture into the interactive marketplace. We were approached by various potential providers; but we were impressed and convinced by IVE's premier interactive technology," said John Pennington, assistant vice president of marketing for Colonial Penn Insurance. "We're excited about this opportunity and we're pleased to join IVE's stable of top-tier, consumer-oriented product and service companies participating on U S Avenue."

Colonial Penn Insurance is a low cost, highly competitive, provider of personal lines insurance for individuals and families. The Colonial Penn companies write automobile insurance for the mature driver, as well as homeowners, flood, boat and personal umbrella liability insurance. All insurance is marketed directly to the customer by Colonial Penn staff. The company does not use agents or brokers to deliver its products. This method offers the advantage of being able to offer insurance at the lowest possible cost and yet provide exceptionally good customer service. Sales and Policyholder Service is provided by regional centers in Norristown, Penn., Tampa, Fla., and Phoenix, Ariz. Claims Service is provided from the regional centers plus other strategically located offices and personnel. One or more of the Colonial Penn family of companies is licensed in all fifty states.

Book-of-the-Month Club (BOMC)

BOMC will work with IVE to create a virtual store-front on U S Avenue that will allow consumers to interactively research and order books offered by the company's seven clubs: BOMC, Quality Paperback Book Club, Children's Book-of-the-Month Club, History Book Club, Money Book Club, HomeStyle Book Club and Crafter's Choice.

"We're delighted to be working with IVE to explore interactive television, a vehicle we see as an attractive new distribution channel as well as a means to expand our customer base," said Michael Curry, vice president of new media for BOMC. "We look forward to reaching our target audience with personalized and interactive messaging and merchandising options."

Book-of-the-Month Club, Inc. was founded in 1926 with 4,750 members to bring the best of new and classic books to readers throughout the country. In 1994, the company, with its seven clubs and three continuity programs, distributed 25 million books to its members throughout the world. BOMC is a subsidiary of Time Warner Inc.

Lands' End

"Lands' End's goal is to fully translate the printed catalog experience into a multimedia and interactive format that embraces the Lands' End commitment to each customer. U S Avenue uniquely offers entertaining and interactive features combined with a home-shopping medium that allows us to test a new way of doing that," said Mike Atkin, vice president of marketing at Lands' End. "Lands' End is testing a variety of evolving platforms to learn more about the buying patterns of the electronic shoppers and in particular, the preferences of Lands' End customers. And as we look ahead to the interactive television trials scheduled to begin later this year, we have found an ally in Interactive Video Enterprises."

U S Avenue will feature Lands' End's personalized service environment with full-motion product videos and editorial audio within a broadband environment.

Lands' End is an international direct merchant of traditionally-styled clothing for men, women, and children, accessories, shoes, soft luggage and Coming Home products for the home. Sales for the fiscal year `95 were $992 million, making the Lands' End brand one of the largest apparel brands in the United States.

Interactive Video Enterprises

Following three years of research and development, IVE was formed in February 1994 as the interactive marketing and merchandising arm of U S WEST Marketing Resources Group, Inc. IVE designs, develops, implements, promotes and operates interactive, multimedia services, capitalizing on the evolution of new technologies including broadband distribution networks and other interactive media systems nationally and worldwide.

In July 1994, IVE introduced U S Avenue, its first interactive marketing and merchandising service, which is planned for digital-capable interactive market trials. U S Avenue is an entertaining and easily-accessible interactive television shopping environment, oriented toward the variety of today's lifestyles. FTD, Ford Motor Company, Hallmark Connections, JCPenney, Nordstrom and Richard Wolffers Auctions Inc. are among the charter members who have committed to offering their goods, services and information on U S Avenue.

U S WEST is in the connections business, helping customers share information, entertainment and communications services in local markets worldwide. In February 1993, U S WEST became the first telecommunications company to commit to building an interactive, multimedia network throughout its region.

In May 1993, U S WEST became the first American telecommunications company to announce its partnership with Time Warner Entertainment to deliver interactive, broadband video services outside U S WEST's territory. U S WEST and Time Warner are equal partners in building the Full Service Network. Additionally, U S WEST formed a domestic strategic alliance with Time Warner Entertainment, which provides cable services to 11.5 million households throughout an additional 32 states bringing U S WEST's total access to 46 states.

U S WEST was the first company in the world to test the market for video-on-demand services through a collaborative effort with TCI and AT&T.

U S WEST in partnership with TCI, provides telephone and cable access to 3.5 million households in the United Kingdom. -0-

Note to Editors: Interactive Video Enterprises and U S Avenue are service marks of Interactive Video Enterprises, Inc.

CONTACT: Redgate Communications Corporation

Morgan McAlenney ([e-mail])

or Sue Baelen ([e-mail]), 415/777-3911

Fax [phone]

or

Book of the Month Club

Colleen Murphy, 212/522-6741 or Fax [phone]

or

Colonial Penn

John Pennington, 610/650-2160 or Fax [phone]

or

Lands' End

Anna Schryver, 608/935-6319 or Fax [phone]