DIVA Files for Chapter 11 Reorganization.

Business Editors

REDWOOD CITY, Calif.--(BUSINESS WIRE)--May 29, 2002

Today, DIVA Systems Corporation filed for reorganization under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of California, and at the same time filed a voluntary, pre-negotiated plan of reorganization which provides for a wholly-owned subsidiary of Gemstar-TV Guide to acquire substantially all of DIVA's assets, and for Gemstar-TV Guide to be a joint proponent of the plan.

Holders of more than a majority of DIVA's outstanding Notes have agreed to support the plan of reorganization. On the Effective Date of the plan, DIVA will receive shares of Gemstar-TV Guide Common Stock for distribution to DIVA's creditors in accordance with the terms of the plan of reorganization, and Gemstar-TV Guide will own DIVA's technology and assets.

"This sale marks the end of a long and arduous journey to reposition DIVA. We could not have accomplished our mission without the strong and continuing support from our employees, Board of Directors and strategic stakeholders. The sale also represents a new beginning for the unique resources that make up DIVA. Gemstar-TV Guide will leverage our innovative server-based technology and expertise," said Henk Hanselaar, DIVA's president and chief executive officer. "This technology marriage between Gemstar-TV Guide and DIVA has the potential to significantly change cable consumers' interactive TV experience."

DIVA anticipates that the Chapter 11 reorganization process DIVA and Gemstar-TV Guide have embarked upon should take from 60 to 120 days to complete. Until the acquisition is completed, DIVA will continue to operate its day-to-day business as the "debtor in possession" under the Bankruptcy Code.

"DIVA intends to continue to work closely with its MSO customers, AT&T Broadband, Charter Communications, and Insight Communications, to provide quality video-on-demand (VOD) products and services through the transition to Gemstar-TV Guide," stated Hanselaar.

"The employees of DIVA, both past and present, have made DIVA what it is today -- a tremendously creative and innovative company that made significant contributions to the cable and interactive TV industry. These employees created the foundation for VOD and server-based technology as we know it today," concluded Hanselaar.

About DIVA:

Since 1995, DIVA has been a leading video-on-demand (VOD) solutions provider to the cable television industry, with the industry's most commercially deployed, operational VOD systems. DIVA's advanced video-on-demand solutions provide consumers with complete control over their viewing experience and, with VCR-like capabilities, they can watch new releases, library films and basic and premium cable programming, as well as children's programming. DIVA's hardware and software products are interoperable and based on industry standards, providing cable operators with the most flexible VOD solution.

The core of the DIVA VOD solution, the system software, provides unparalleled ability to tailor and manage services in an effort to maximize revenue per household. DIVA also offers system integration, content management and network operations services, all of which enhance cable operators' control and time to market. DIVA's products are commercially deployed and operational in 28 systems by large-scale operators such as AT&T Broadband, Charter Communications and Insight Communications, which together reach 44 percent of all U.S. digital cable subscribers. Founded in June 1995, DIVA is a privately held company and is headquartered in Redwood City, Calif. DIVA's strategic investors include Charter Communications, NTL, OpenTV, Starz Encore, Liberate and Motorola. DIVA is a registered trademark of DIVA Systems Corporation.