DIVA and Chambers Communications Corp. Deliver Cable Industry's First Ever Integrated VOD Billing System Interface; Real-Time Transaction Processing Solves Back-Office Billing Issues.

CHICAGO--(BUSINESS WIRE)--June 13, 1999--

DIVA(TM) and Chambers announced today that the two companies have worked together with Convergys to develop and commercially deploy the cable industry's first-ever, fully automated video-on-demand billing interface using the Convergys' billing and customer service software.

The DIVA server, which is located in Chambers' Edmonds, Wash. digital headend is directly connected to Chambers' billing computer in Eugene, Oregon. Video-on-demand purchases and subscription packages are passed to the billing system over a "real time TCP/IP" network connection. Each month, Chambers produces a single integrated cable bill that contains both cable and video-on-demand transactions.

Additionally, the billing system interface also enables VOD subscription services to be ordered by the cable customer via their set-top box and remote control. Customers can select a monthly subscription to a package of children's content on the video server. The subscription information is automatically passed to Chambers' billing computer, immediately enabling the customer to watch any of the packaged content as many times as they want during the month for a single monthly fee.

The DIVA billing interface provides for two way transaction processing between the cable operator's Convergys' billing and subscriber management software and the DIVA System Manager (DSM) -- a comprehensive suite of back-office software that enables On Demand TV services. The transactions include movie purchase transactions, account and set-top box provisioning data as well as information on subscriber credit limits, spending, and other cable services.

"The ability to integrate interactive purchases and cable subscriptions opens the door for a variety of packaging options selectable by the customer from his home without a telephone call to the cable system," said Mike Johnson, Vice President of Information Systems for DIVA.

"The cable billing paradigm is finally changing from subscription processing to a transaction based model. This major shift in billing system processing provides the cable operator with the ability to integrate subscriptions, video-on-demand, or any other purchases on a single consolidated bill."

"It was important to us to be able to offer our customers state-of-the-art VOD services while at the same time keeping a simple, consolidated bill for Chambers Cable video services," said Scott Chambers, President, Chambers Communications Corp. "We are very pleased with the success of the billing interface. The integrated billing system has been operating successfully in our Edmonds system for over three months now."

"The successful launch of this interface marks a key milestone in the commercial deployment of VOD services to the marketplace ," said Curt Champion, Director of Cable & Broadband Marketing for Convergys. "With the introduction of an integrated interface, the management and billing of VOD transactions has been dramatically simplified and will open the door for operators of all sizes to introduce VOD services to their customers."

With rights to more than 3,000 new release and library titles from major studios, producers and distributors, DIVA's On Demand TV -- an enhanced form of interactive video-on-demand -- offers immediate, in-home access to a diverse and continuously expanding selection of movies, children's shows and special interest programming. DIVA's On Demand TV also features pause, fast-forward and rewind functionality and high quality digital picture and sound.

The DIVA Video Server (DVS) is fully scalable and enables cable operators to expand their mix of programming with more than 1,000 titles to serve thousands of customers simultaneously. DIVA provides real-time, transactional billing interfaces with major billing companies, maintains video-asset tracking systems and manages a network operations center on a 24-hour, 7-day per week basis to support its cable affiliates.

DIVA Systems Corporation (www.divatv.com) is a privately held company founded in June 1995 and is headquartered in the heart of California's "Silicon Valley" on the campus of SRI International (formerly the Stanford Research Institute), in Menlo Park. DIVA commercially launched its digital On Demand TV solution in cable television systems in the Fall of 1997 and is now deployed in five cable systems in the U.S.

Chambers Communications Corp. (www.chamberscable.com) is a privately held company operating five cable systems serving 82,000 customers. Chambers Cable systems are located in Edmonds, Wash.; Chico and Novato, Calif.; Sunriver, and Ontario Ore.; and Payette, Idaho. MSO headquarters are located in the newly constructed Chambers Media Center in Eugene, Ore., a 100,000-sq. ft. broadcast/production facility. The Chambers Media Center is also home to Chambers Productions and KEZI, one of three ABC television affiliates in Oregon which are owned and operated by Chambers Communications Corp.

Certain statements of DIVA contained in this release, including those relating to its current deployments and its access to video content over the long term are forward looking statements. No assurance can be given that future results will be achieved. Actual events or results may differ and may differ materially as a result of risks facing DIVA or of assumptions differing from those underlying the statements contained in this release. Such risks and assumptions include, but are not limited to dependence on cable operator participation, technological change and new product development, compliance with industry standards, reliance on third-party manufacturers, uncertainty of protection of patents and proprietary rights, continued access to programming content, the rate and extent of consumer acceptance, and the impact of competitive products and services. These risks and other risk factors are set forth in the Company's most recent 10-Q filed with the Securities and Exchange Commission.

Note to Editors: DIVA is a trademark of DIVA Systems Corporation. All other products or brand names are trademarks or registered trademarks of their respective owners.