Energis PLC To Market GEO Interactive's Emblaze Streaming Media Technology Throughout Europe.

WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Nov. 11, 1999--

Following an Oct. 4 announcement that GEO Interactive had entered into an agreement with one of Europe's leading ISP and infrastructure providers to market GEO's Emblaze products and services in Europe, GEO Thursday confirmed its relationship with Energis PLC.

Energis will pay a fee of 7.5 million pounds for the rights to market GEO's Emblaze streaming media services and applications throughout Europe.

Under the terms of the agreement, GEO will provide the technology for these services and Energis, through its subsidiary, Planet Online Ltd., will deliver the bandwidth and hosting infrastructure. Energis and Planet Online will also provide its strong marketing infrastructure and expertise in the United Kingdom and Europe.

Furthermore, GEO entered into an agreement whereby Energis will acquire existing 6,976,743 Ordinary shares in GEO, or 5.6 percent, to the value of an additional 7.5 million pounds from shares sold by the four founding partners and Olamic Holdings N.V.

Energis will acquire the existing Ordinary shares from GEO's directors for a price equivalent to 107.5 pounds per share (being the market price at the time of entering into heads of agreement with GEO on Sept. 8, 1999). This price compares with the current market price of 247 pounds on Nov. 9, 1999.

Following the sale of GEO existing Ordinary shares, GEO's directors will retain aggregate 78,383,257 Ordinary shares in GEO, representing 65.39 percent of the issued share capital.

GEO's directors will reinvest a portion of the sums they realize from the sale of their Ordinary shares to Energis to acquire additional GEO shares, when permitted under the provisions of GEO's Model Code on dealings.

GEO's directors continue to be bound by a share lock-in provision over the remainder of their Ordinary shares entered into at the time of GEO's entry to the Official List on June 8, 1998. Energis has also agreed to be bound into a similar lock-in arrangement in respect of the Ordinary shares acquired from GEO's directors. The arrangement expires on June 8, 2000.

Commenting on the transaction, Naftali Shani, chairman of the board of GEO Interactive, said: "The agreement with Energis is a very significant commercial contract for GEO. Energis' endorsement of GEO's technology, by expanding their range of services and acquiring a strategic stake in the company, demonstrates the prominent position of GEO as a leader in the streaming media market."

Mike Grabiner, chief executive, Energis PLC, said: "Audio and video streaming capabilities over the Internet represent a significant new dimension for the electronic world. This investment in GEO further demonstrates our commitment in the business and further pole positions Energis and Planet Online in the fastest-growing sector of the business telecoms marketplace."

About GEO Interactive Media

GEO Interactive develops leading-edge tools for producing streaming audio, video and graphics content over the Internet. GEO's Emblaze technology streams multimedia content over low-bandwidth modems without the need for plug-ins or special server software and is dynamically scaleable to intranet speeds.

The Israeli-based company has international operations around the world with its North American headquarters based in Woodland Hills. The company is traded on the London Stock Exchange (LSE:GIM). More information about GEO can be found by visiting www.emblaze.com.