Digital Magic Lets Millions of Fans Have Their Own Party With Barney On Video.

NEW YORK--(BUSINESS WIRE)--Feb. 24, 1998-

Home Shopping To Feature Exclusive Launch Of Kideo's

Personalized Barney Products

The Home Shopping Network announced today that it has partnered with Kideo to feature its lines of digitally personalized children's products.

On February 24, Home Shopping will offer Kideo's line of "Gregory & Me(TM)" personalized product as a "Today's Special" and in March, Home Shopping will feature the exclusive launch of Kideo's line of digitally personalized Barney(TM) products based on the top-rated preschool television series "Barney & Friends(TM)."

Through a revolutionary digital process, Kideo has created a unique personalized home video series that allows children to star in their own videos. From a single photograph, each child is turned into a fully animated member of the cast appearing in both animated and live-action puppet sequences. In addition, characters in the videos address each child by name and engage the child in on-screen events by asking for suggestions and encouraging participation.

Home Shopping's "Gregory & Me" Today's Special will include a personalized home video, a photo-personalized book, personalized stickers, a personalized audio cassette and a coloring book. All of the items will feature Gregory Gopher and the activity of his magical world. He and his child co-star will engage in fun-filled activities while solving problems and learning important lessons about self-esteem, sharing and friendship.

Home Shopping will also offer Kideo's new "My Party With Barney," an exclusive video specially designed to accommodate the insertion of a child's image turning that child into an animated character who appears alongside Barney throughout the video. The child's name will be spoken by Barney and included in songs as well as on the video's packaging. In addition to the video, customers will receive a photo-personalized Barney book, "Barney's Alphabet Adventure" along with sheets of personalized stickers.

"We are thrilled with Home Shopping Network's commitment to offer Kideo products to the 70 million households it reaches," said Richard L. Bulman, Kideo's president and CEO. "We're looking forward to a very successful partnership."

Founded in 1993, Kideo (OTC Bulletin Board: KIDO) is the nation's leading producer and marketer of digitally personalized media products for the home entertainment market. Kideo has been awarded "Kids First" and "Parent's Choice" awards for a variety of the company's personalized home video titles, most recently for its "GREGORY & ME" personalized home video series for preschool children and Kideo was recently granted licenses for personalized Barney videos and books.

The Home Shopping Network, a subsidiary of USA Networks, Inc. (Nasdaq:USAI), pioneered the electronic retailing industry in 1977. Its 24-hour programming reaches 70 million households via cable, broadcast television and satellite dishes. The company is America's largest seller of colored gemstones and designer collectible dolls. The Home Shopping Network also owns the Internet Shopping Network (ISN, located at http://www.isn.com), one of the largest electronic retailers on the Internet, holds interests in shopping channels in Germany and Japan, and recently announced the formation of Home Shopping Network en Espanol to launch early in 1998.

NOTE: The name and character Barney are trademarks of The Lyons Group. Reg. U.S. Pat.& TM.Off.

CONTACT: Kideo Productions, Inc., New York

Richard L. Bulman, 212/505-6605; fax:[phone]

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