USA Video Interactive Awarded Contract for D.C. Public Schools; Complete Interactive Streaming Video Solution `Holds Great Promise' for Schools and Other Institutional Clients.

Business/Technology Editors

MYSTIC, Conn.--(BUSINESS WIRE)--Sept. 20, 2000

USA Video Interactive Corp. (OTC BB: USVO; CDNX: US; www.usvo.com) today announced it has been awarded a contract to supply the District of Columbia Public Schools with a complete interactive video streaming solution capable of delivering full motion video to classroom computers or work stations in "real time" or on-demand. There are 147 public schools in the district; installation of a USA Video Interactive system in one of these schools will be completed within two months. Pending successful installation of this system, which is worth approximately $300,000, this contract may be expanded to include the other schools.

"We were eager to seamlessly integrate numerous applications in a single, high-quality system," said Stanley Johnson, Director of Instructional Technology for D.C. Public Schools. "After a lengthy evaluation process, we chose USA Video Interactive because of their unique architecture, cost-effective solution, and technical and engineering strength. USA Video Interactive's unique features support any learner, any place, any time. It's a real-time desktop experience that supports our technology initiatives. I am trying to identify media rich solutions for the schools of the nation's Capital and to ensure that in the next 24 to 36 months, as convergence becomes the norm, the District's 147 schools and 70,000 students are prepared for it. USA Video Interactive is a solution that holds great promise for us achieving this goal."

Edwin Molina, president and CEO of USA Video Interactive, said USA Video Interactive has engineered for D.C. Public Schools as complete a system as is available anywhere on the market. "It demonstrates the adaptability of our unique architecture to a wide range of uses, all within a single system that's economical, simple to administer and maintain, and easy to use," Molina said. "It is the ideal solution for individual schools, campus settings and entire school districts."

The core of the system is USA Video Interactive's real-time webcast architecture, which provides simultaneous encoding of 15 live channels delivered from several satellite dishes and multiple VCRs; delivery of encoded video over an existing school system backbone; selectable encode rates for each stream; live webcast and post-event broadcast of video; multicast and unicast modes of delivery; videoconferencing capability at client computers; video e-mail on a school intranet system; portable video capture and encoding unit with integrated camera inputs, multicast to clients, post-event playback and message board for student questions; and Web interface with links to video channels.

The solution provides encoder and server hardware and peripherals (such as power controller, monitor, keyboard, mouse, uninterruptible power supply, etc.), software and technology licenses, technical support including first-year maintenance, assembly and delivery, installation support and training, off-the-shelf functionality software, and customized software development.

"We are actively developing systems like this to be quickly assembled and shipped in a variety of configurations to meet the specific needs of dozens of types of institutional clients," Molina said.

USA Video Interactive's solution is also being deployed in Connecticut, Boston, New York, Chicago and Miami. In Connecticut, USA Video Interactive's technology is being used by the regional education resource center called Project LEARN, the State of Connecticut and Teikyo Post University to provide distance education for licensed early child care practitioners. In Boston, New York, Chicago and Miami, USA Video Interactive is the streaming video and video-on-demand partner of the SchoolFirst Foundation for deploying integrated information delivery systems to schools. Other deployments are pending.

About USA Video Interactive

USA Video Interactive is an international designer and supplier of high-tech Internet streaming video and video-on-demand systems, services and innovative end-to-end solutions. The USA Video Interactive patented video technology gives users full-motion video; the flexibility of standard, VCR-like controls; and the convenience of a standard internet-browser format for access. It provides video images significantly faster and at a higher degree of resolution than with previously available methods; significantly overcomes bandwidth restrictions; and eliminates the blockiness and slowness of current technologies -- all at a lower cost and at or near broadcast quality. USA Video Interactive is nearing completion of a patented Wavelet compression technology that will further enhance the company's ability to deliver Internet video to home modem users and reduce storage and download-time requirements for all users, including those with broadband connections. For more information on USA Video Interactive, visit http://www.usvo.com

USA Video Interactive Corporate Headquarters Office: 70 Essex Street; Mystic, CT 06355; [phone]; [phone]. Canada Office: 837 West Hastings Street; Suite #507; Vancouver, B.C. V6C 3N6. Trading symbol on the OTCBB: USVO; Trading symbol on The Canadian Venture Exchange: US. Standard & Poors Listed. CUSIP 902924208; USA Video, USA Video Interactive, Video-On-Demand and Video Yellow Pages are trademarks of USA Video Interactive. The Canadian Venture Exchange (CDNX) has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. For more information contact: Tony Castagno, Media Relations, 860-572-1560; Kevin Yorio, Investor Relations, 860-572-1560; [e-mail]

This press release may contain forward-looking statements. Actual results may differ materially from those projected in any forward-looking statement. Investors are cautioned that such forward-looking statements involve risk and uncertainties, which may cause actual results to differ from those described.