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DIGITAL EQUIPMENT AND USA VIDEO SIGN OEM AGREEMENT

 MAYNARD, Mass., Jan. 12 /PRNewswire/ -- Digital Equipment Corporation (NYSE: DEC) announced today the signing of an Original Equipment Manufacturer (OEM) agreement with USA Video Corporation, enabling the two companies to work to increase their respective market share of the video-on-demand industry, worldwide. By joining forces, Digital and USA Video will offer industry-leading video information services, including interactive video servers and end-to-end video-on-demand solutions, to the growing interactive information services market.
 Digital and USA Video expect to demonstrate their new relationship by jointly supporting Bell Atlantic Corporation's (NYSE: BEL) upcoming market trial of Video Dial Tone (VDT) through the Chesapeake and Potomac Telephone Company of Virginia. USA Video plans to function as a video information provider in the trial, delivering interactive video services that employ Digital's interactive video server technology.
 The market trial is a commercial deployment of video-on-demand that will be offered to 40,000 end-users in northern Virginia in spring, 1994.
 Charles F. Christ, vice president of Digital's Storage Business Unit, said, "Today's announcement is a culmination of ongoing discussions between Digital and USA Video, and highlights Digital's ability to deliver now the most comprehensive solutions to inter-active information and video-on-demand suppliers. Our video server platform incorporates Digital's Alpha AXP processors, StorageWorks disk storage arrays, Digital Linear Tape library systems, inter-active gateway unit, server management unit, and GIGAswitch, a high-speed networking switch linking the various elements together."
 Gordon F. Lee, president of USA Video stated, "USA Video is extremely pleased to be working with Digital on providing video-on-demand solutions to the industry. We plan to incorporate Digital's interactive video server technology into our overall end-to-end video-on-demand system, which includes programming, video compression, transmission systems, and TV set-top boxes. Digital's technology will further strengthen our product offering and enhance our position as the industry's leading video information provider."
 USA Video is a turnkey video-on-demand service provider that has developed and is testing video compression, storage, server and transmission technology necessary to offer video-on-demand entertainment and other interactive video services to residential and business customers. The company has headquarters in Century City, Calif., with its research and development organization located in Irving, Texas.
 Digital Equipment Corporation is the world's leader in open client/server solutions from personal computing to integrated worldwide information systems. Digital's Alpha AXP platforms, storage, networking, software and services, together with industry-focused solutions from business partners, help organizations compete and win in today's global marketplace.
 NOTE: Alpha AXP, StorageWorks, GIGAswitch, Digital and the Digital logo are trademarks of Digital Equipment Corporation.
 -0- 1/12/94
 /CONTACT: Tom Madden of Digital Equipment, 508-841-5365 ; or Edwin Molina of USA Video, 800-625-2200/
 (DEC BEL)


CO: Digital Equipment Corporation; USA Video Corporation; Bell Atlantic
 Corporation; Chesapeake and Potomac Telephone Company of Virginia ST: Massachusetts, California, Texas, Virginia IN: CPR SU:


DJ-JL -- NE006 -- 1383 01/12/94 11:29 EST
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Publication:PR Newswire
Date:Jan 12, 1994
Words:467
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