Desfosses International to Acquire Stake in VideoNet.

PARIS--(BUSINESS WIRE)--Sept. 20, 1999--

Desfosses International - the media division of the LVMH Group - today announced that it is acquiring a 20% stake in Video Networks Ltd. ("VideoNet"), the pioneering UK-based media and technology company that has developed a service to provide video on demand and high-speed Internet access via new ADSL (Asymmetric Digital Subscriber Line) technology. The stake is being acquired through a (pound)20 million capital increase.

VideoNet recently announced its imminent launch of Europe's first commercial digital video on demand and high speed Internet service. Subscribers to VideoNet will be able to access the widest range of on-line films including major Hollywood releases and classic hits, top television programming including comedy, drama and sports, music videos, home shopping and home banking, through a set-top box. Services will be delivered to customers over BT's ADSL-enhanced copper network, at speeds of over forty times conventional modems.

VideoNet was founded in 1992 by Chief Executive, Simon Hochhauser, formerly head of technology venture capital with the J. Rothschild Group. VideoNet's chairman is Ian Irvine, also chairman of Capital Radio and former chairman of Reed International and BSkyB. Major shareholders include Baron Bentinck (the Swiss-based investor); a member of the N M Rothschild Group; Botts and Company Limited, (London affiliate of the New York investment bank, Allen & Co. Inc); Sir David Alliance; Lord Owen; Sir David Frost and Kingston Communications (HULL) PLC.

Simon Hochhauser said: "We are delighted to be working with such a prestigious partner. This investment provides further momentum to support our launch of broadband interactive television and fast Internet services to consumers in London over BT's ADSL-enhanced network."

Fabrice Larue, President of Desfosses International commented: "This is a unique investment in a pioneering company that is at the forefront of new media technology in Europe. ADSL will soon be a leading means of data communication and delivery across Europe, offering enormous potential for service providers and customers alike. As a media organisation, we have long recognised that new technologies will play a major role in our future development and this investment is therefore in line with our stated strategy to develop a strong technological capability on an international scale."

Notes to Editors

Desfosses International

Desfosses International comprises the media activities of LVMH Moet Hennessy Louis Vuitton S.A. The group holds interests in a complementary range of French economic, financial and investment publications and services: the daily newspaper La Tribune, the weekly financial newspaper Investir, the monthly Investir magazine, and Victoire Multimedia, a multimedia services company. In May 1999, the group acquired Radio Classique, the French music and business radio station and in July it acquired Sid Editions, publisher of the monthly economic publication Defis.

In 1998, readership of the group's three flagship publications exceeded one million, reaching more than 700,000 senior managers and 200,000 individual investors. Each month the group's website receives more than seven million visits. Sales rose by over 20% in 1998. Looking forward, Desfosses International will pursue three strategic priorities: to expand its services to readers and users through the development of regional information products and services, to expand in Europe and internationally, and to further develop a strong offering in the area of new technology. It anticipates revenues in excess of one billion French francs by the year 2000.

LVMH

LVMH Moet Hennessy Louis Vuitton, the world's leading luxury goods group, produces and sells champagne and cognac through the Wine & Spirits Division, with brands including Dom Perignon, Moet & Chandon, Veuve Clicquot Ponsardin, Krug, Pommery, Hennessy and Hine. The company's Fashion & Leather Goods Division included brands such as Louis Vuitton, Loewe, Givenchy, Kenzo and Celine. LVMH also produces perfumes and cosmetics through its Fragrances & Cosmetics Division, whose brands include Parfums Christian Dior, Guerlain, Givenchy and Kenzo. LVMH is also involved in selective retailing through DFS and Sephora and in October this year will launch Sephora.com, a new online retail concept for fragrances and cosmetics.

Video Networks Limited

Video Networks Limited is a recognised world leader in the provision of true video on demand and broadband interactive television. The company ran a commercial video on demand pilot from December 1996 to June 1999 in Hull and has been operating in London over BT's Interactive Service Network (ISN) since July 1998. Video Networks recently announced Europe's first commercial video on demand and interactive television service which will be launched in October 1999 to consumers in London over BT's ADSL network.

ADSL

ADSL technology allows delivery of Internet and multimedia services at more than 40 times the speed of conventional modems via conventional copper telephone wires. ADSL technology together with digital compression allows high-quality sounds and pictures to be compressed to be transmitted, along with so that huge volumes of data, can be transmitted along using existing networks. It does not disturb operates at a different frequency to ordinary voice telephony, allowing voice and online services to be transmitted simultaneously. In July 1999, BT announced that it is spending (pound)250 million to upgrade 400 of its exchanges with ADSL, allowing 6 million customers (25% of the market), to receive the service by March 2000. It is projected that 75% of the UK should be able to receive the service within three years.