Hotels Look to Digital Broadband Television for Client Satisfaction and Increased Revenue.

Business Editors

SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 27, 2001

NXTV Broadband Delivery System at St. Regis Monarch Beach

and Peninsula Beverly Hills Hotel use streaming media 

gateway processors designed by Tvia, Inc.

Hotels and hospitality centers, looking for additional streams of cash, see the guest room television as a new revenue generation element. Today, Tvia, Inc. (NASDAQ:TVIA) announced that NXTV, a next generation provider of digital Broadband Delivery Systems (BDS) for the hospitality industry, is using Tvia's CyberPro 5055 streaming media gateway processor to enable NXTV to deliver simultaneous streams of rich media content on demand.

"NXTV provides hotels with a new form of revenue via a dynamic Interactive Program Guide allowing guests access to digital entertainment and high-speed Internet services. Fast delivery of digital entertainment and information services to hotel guests at our showcase hotels here in Los Angeles is an important step in the overall adoption of NXTV's Broadband Delivery System by major U.S. hotel groups," said James Miles, President and CEO of NXTV, Inc. "Tvia's streaming media gateway processor provides an easy design methodology that lets us focus on our core competency - delivering top quality digital video and high-speed Internet services."

Equipped with NXTV's digital Set Top Box, which incorporates Tvia's streaming media gateway processor, hotel guests can select interactive broadband services such as digital Video-On-Demand movies with Enhanced TV features including pause, reverse, fast-forward and bookmark, which allows guests to stop and re-start movies at will over a 24-hour time period. Additional broadband services include digital on-demand movie previews, high-speed Internet access via the TV and laptop, interactive video games and digital satellite television programming provided by DirecTV.

"Our streaming media gateway processors and development environment are important design ingredients for the simultaneous display of broadcast TV, Internet and interactive content on television sets in the home-away-from-home," said Vahe Akay, Tvia's vice president of marketing. "NXTV's adoption of the Tvia streaming media gateway processor is a testimonial for its flexibility in allowing hotels to customize the entertainment packages delivered through the NXTV Broadband Delivery System to suit each of their client's needs and preferences and potentially generate additional revenue streams."

Currently, NXTV is deployed at some of the top hotels in the Los Angeles including The Peninsula Beverly Hills Hotel, the St. Regis Monarch Beach and the Hotel Bel-Air. Digital movie licenses have been signed with some of Hollywood's top studios including Fox, Warner Bros, DreamWorks, Miramax and Disney allowing the company to distribute movies generally two to three months after their theatrical release.

The CyberPro 5000 family of streaming media gateway processors is intended for the design of broadband digital set-top boxes, Internet Appliances and digital television. The CyberPro 5000 offers audio, video, enhanced text, graphics, and animation processing engines. The CyberPro 5000 includes two video ports for two simultaneous video streams. It also features high quality picture of broadband television video, a hardware magnified view of Web pages on television, and a flexible transparency algorithm for blending multiple video, text, graphics, and animation.

About NXTV:

NXTV, Inc., was founded in January 1997 to explore the emerging market opportunity for delivering interactive, digital broadband services both to the hospitality and residential markets. Over the past four years, the company has assembled an experienced management team, developed a powerful and revolutionary technology and established a strong network of world-class strategic partners.

About Tvia, Inc.

Tvia, Inc. designs, develops and markets streaming media gateway processors for the Internet appliance, set top box and digital television markets. The company has worldwide operations employing more than 300 hardware and software product development engineers. The company has secured major design wins with OEMs worldwide in all three of its target markets. For more information visit www.tvia.com.

Except for historical information contained herein, the matters set forth in this press release, are forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. Forward looking statements in this press release include but not limited to the expected use of Tvia's CyberPro 5000 products by NXTV, the expected development of NXTV's products incorporating Tvia's products, and the anticipated features, benefits, results of the use of Tvia's products by NXTV. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including product capabilities, ability to meet shipment timetable, the ability of NXTV to incorporate Tvia's products into its products, and other risks detailed from time to time in Tvia's SEC reports, including its Quarterly report on form 10-Q for the quarter ended June 30, 2001. These forward-looking statements speak only as of the date hereof. Tvia disclaims any intent or obligation to update these forward-looking statements.