Digital Lava Announces Formation of National Channel Partner Network for Firestream Encoding Station.

Business Editors & Technology Writers

MARINA DEL REY, Calif.--(BUSINESS WIRE)--Oct. 23, 2000

Digital Lava Inc. (Nasdaq:DGLV) today announced the formation of a National Channel Partner Network to distribute Firestream Encoding Station(TM), its patent-pending integrated hardware and software digital video encoding solution. With 16 demonstration facilities across the country, the national channel partner network provides complete U.S. geographical coverage for the sale and distribution of FireStream Encoding Station.

The National Channel Partner Network consists of leading film, video and streaming solutions providers to media and entertainment companies in their respective territories. Many of these partners also distribute products from companies such as Avid, Sony, Panasonic, and Ice. Partners include 3 Point Digital in Burbank, California (3 locations), Digital Solutions in Atlanta, Georgia (3 locations), Midwest Media Group in Schaumberg, Illinois, Burst Communications in Englewood, Colorado (2 locations), Stream Works in Dallas,Texas (2 locations), Snader & Associates in San Rafael, California, Washington Professional Systems in Wheaton, Maryland, Industrial Video Corporation in Cleveland, Ohio, Pulse Digital in New York, New York, and Duncan Video in Carmel, Indiana.

FireStream Encoding Station(TM) utilizes proprietary encoder control software with file and job management features to create a user defined mixture of outputs in a variety of multiple formats and data rates, including Microsoft(R) ASF, RealNetworks(TM) RM, MPEG-1 and MPEG-2. The unique software interface enables users to quickly configure a job setup and output requirements based on their individual distribution needs.

"Digital Lava has created an encoding solution that is the missing link for a lot of our clients to expedite their encoding needs," said Rob Cloyd, Vice President of 3 Point Digital. "Our customers have told us that the simple, yet robust software interface is of great value because of the ease of use."

By utilizing FireStream Encoding Station(TM), content creators and network providers can encode video and audio to multiple formats and bit rates both faster and at a far less expense compared to other alternatives. By making all the encoder instances available in one program and with a single unified user interface, FireStream Encoding Station(TM) significantly increases efficiency by eliminating the necessity to cycle through multiple encoding programs.

"FireStream Encoding Station offers efficiencies for encoding that don't currently exist in any other product today," said Dave Fabian, Vice President of Sales of Snader & Associates. "And, with the potential to realize up to 40% savings in encoding and training time, FireStream Encoding Station will become a necessity for high volume streaming media content distributors."

"We are pleased that Digital Lava now enjoys a robust reseller network including 16 dealer locations across the U.S.," said Peter Webb, Digital Lava's Vice President of Sales. "Each of our partners is uniquely positioned as the leading film, video and streaming solutions provider in their respective territories. This level of coverage will allow Digital Lava to rapidly expand our FireStream Encoding Station customer base."

ABOUT DIGITAL LAVA

Digital Lava provides digital publishing services and the enabling software technology to Fortune 2000 companies that create on demand interactive presentations, training and communications. Its robust in-house service offering provides a turnkey solution that delivers rich media quickly and efficiently. These solutions provide end-users with a fully-integrated and interactive experience on their computer desktops delivered via the Internet, intranet, extranet, DVD, CD-ROM or any combination. Digital Lava's services and solutions are employed by Fortune 1000 companies for use in corporate communications, sales, marketing and training applications. Digital Lava's partners and clients include Microsoft, Akamai, RealNetworks, Cisco Systems, Dell Computers, Siebel, KPMG, Prudential Insurance, Network Associates, Alcatel and CompuCom. Digital Lava is headquartered in Marina del Rey, California. For additional information, please visit Digital Lava's Web site at http://www.digitallava.com or call 888/222-LAVA.

This press release contains forward-looking statements concerning the business and products of Digital Lava, Inc. Actual results may differ from those projected or implied by such forward-looking statements depending on a number of risks and uncertainties including, but not limited to the following: development, shipment and market acceptance of Digital Lava's products. Other risks inherent in the business of Digital Lava are described in Securities and Exchange Commission filings, including Digital Lava's registration statement on Form S-3. Digital Lava undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.