Yellowave Corp. Agrees To Acquire YOOPYAH Home Server; Israeli Technology is First Home Server for Interactive TV and Broadband Internet.

Business Editors & High Tech Writers

LOS ANGELES--(BUSINESS WIRE)--June 29, 2000

Yellowave Corp. (OTCBB:YWAV) today announced that it has signed an agreement in principal to acquire YOOPYAH from the Abitbol-Benhamou group for stock.

YOOPYAH has developed the first Home Server in the world to merge two globally accepted standards -- DVB (Digital Video Broadcasting, developed for digital television) and IP (Internet Protocol, used for the Internet) -- to offer the ultimate consumer entertainment package.

The firm is being acquired from a management team led by Prosper Abitbol, the company's chairman and chief executive officer, who will continue in those roles, and from Eric Benhamou, chairman and chief executive officer of 3Com Corp. (Nasdaq:COMS). Mr. Abitbol is also CEO and principal shareholder of IDBC, a leading direct-to-home satellite broadcast TV company in Israel.

The YOOPYAH server enables home TV viewers to instantly and interactively call up program guides, news, Web sites, video and multimedia on demand, and other information that can be updated continually and automatically.

YOOPYAH also records television programming to a hard drive, using a sophisticated digital recorder that can be combined with an intelligent programming service. Unlike earlier-technology video recording devices, the YOOPYAH server is designed to work with interactive television services.

The company has technology development agreements with National Semiconductor Corporation (NYSE:NSM), Quantum Corporation (NYSE:DSS), Phillips (NYSE:PHG), News Corporation affiliate NDS Group plc (Nasdaq:NNDS), Dell Computer (Nasdaq:DELL) and other companies.

Mr. Abitbol said: "The YOOPYAH technology will change the way in which people listen to music, watch television, browse the Internet, do their shopping and make their telephone calls tomorrow -- all of which will be done more conveniently and more enjoyably, anywhere, and with any medium."

Abitbol said, "YOOPYAH's strategic vision for the digital era is clear -- informing, extending and enhancing people's choice, offering genuine involvement and new levels of access. In the new digital world, broadcasting, telecommunications and computing are converging. This offers both value and opportunity, and is transforming how we communicate and do business.

"We conceive a home server that is affordable for all and usable by every member of the family. Today's various set-top boxes will disappear, replaced by a single connection offering freedom of choice and freedom of connection to the digital world. We want to become the worldwide integrator of the single home connection."

As part of Yellowave, Mr. Abitbol said, YOOPYAH will have the resources to achieve that goal more rapidly.

Laura Ballegeer, Yellowave chief executive officer, said, "The technology that YOOPYAH brings to the home will truly be revolutionary, and the team who have developed it are superb. We believe they will be a vital component in the future of Yellowave, and that their affiliation with Yellowave will enable them to quickly bring their technology to the global marketplace."

Yellowave is an incubator of high-tech companies, with a special focus on assisting the development of wireless and telecommunications companies emerging from the very active science and technology community in Israel. Yellowave is currently in advanced negotiations with several other Israeli companies.

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The company's actual results could differ materially from those anticipated in such forward-looking statements.