First Video Commercial Made Specifically for the Internet will Begin Appearing Nov. 18; VDOnet's Ad is New Milestone for Net as a Commercial Medium.

PALO ALTO, Calif.--(BUSINESS WIRE)-- Nov. 15, 1996--The first full motion video commercial made specifically for the Internet will begin appearing at six websites next week, marking a new milestone in the development of the Net as a commercial medium.

The commercial is sponsored by VDOnet Corp. and features the company's VDOPhone as an ideal holiday gift to bring families living apart closer together. VDOnet is the leader in video streaming for the Internet through its VDOLive technology .

"The video commercial made specifically for the Internet is a strong indication of how far and how fast video streaming technology has advanced the past year and how the Internet continues to develop as a commercial medium," said Yuval Cohen, vice president, marketing, for VDOnet.

"Because the quality of video on the Net has evolved far enough, people will be able to make educated buying decisions based upon what they see and therefore we expect to see a significant growth in such Internet commercials by a long list of advertisers."

The VDOnet commercial, in production today in San Francisco, was written and directed by Michael Tarr, an Emmy Award-winning screen writer and film maker. The spot uses professional actors and differs from the production of television-quality ads only in minor production details.

The commercial will run through the end of the Christmas holidays and, like any other advertiser, VDOnet will track ad viewership at each site and measure the effectiveness of the message through sales data.

This VDO-Spot will appear on the following web sites: www.vdo.net; www.azteq.com; www.brainworks.net; www.imall.com; www.lumanet.com, and www.virtualmedianet.com.

VDOLive allows Web users to take advantage of "streamed" video, eliminating the need to download a file and wait minutes before even a short video clip is ready for viewing. The VDOPhone allows anyone with a dial-up modem and a regular phone line to have full-color motion video conversations over the Internet or over regular phone lines.

To date, in addition to the millions of Web users who have the VDOLive player, the VDOLive server is being used by hundreds of Web sites, including PBS, CBS, Fox, CBC, Preview Vacations, and many others.

VDOLive has also recently been used to broadcast a number of live events on the Internet, including the Republican and Democratic National Conventions, a Microsoft developers' meeting, a series of Japanese baseball games, college football games, the MTV Europe Music Awards and others.

In addition to being available as a stand-alone product, the VDOPhone is also available in Packard Bell's new Platinum series personal computers and a trial version of the VDOPhone will be available with all of Diamond Multimedia's products later this year. America On-Line has also licensed a version of the VDOPhone for use with its Virtual Places chat and community areas.

VDOnet Corporation, based in Palo Alto, Calif., has developed both fundamental technology and compelling products for video broadcasting and video telephony over computer networks of any bandwidth, and for use over public internets or private intranets.

VDOnet was founded in 1995 and today has offices in the U.S., Israel, and Japan. Its investors are Microsoft Corp., U S WEST Media Group, NYNEX, Battery Ventures, and private sources. VDOnet's URL is http://www.vdo.net. -0-

Note to Editors: For more VDOnet customer information, please contact: VDOnet Corp., Palo Alto, CA, 415/846-7700; Fax: [phone]; [e-mail] All trademarks and registered trademarks are those of their respective companies. The text of this release as well as additional background information may be downloaded from our website at http://www.roederj.com

CONTACT: VDOnet Corp.

Randy Haldeman, 415/846-7700

or

Roeder-Johnson Corp.

Abigail Johnson/Mike Brogan, 415/802-1850

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