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LEADING COMMUNICATIONS COMPANIES TO SUPPORT INTERACTIVE NETWORK IVDS OFFERING

 LEADING COMMUNICATIONS COMPANIES TO
 SUPPORT INTERACTIVE NETWORK IVDS OFFERING
 NEW YORK, Nov. 12 /PRNewswire/ -- Interactive Network (NASDAQ: INNN) (IN), the only interactive home television system currently in operation in the United States, announced today that it has expanded its business to provide Interactive Video and Data Services (IVDS) in the IVDS spectrum recently announced by the FCC. The spectrum will be assigned by FCC lottery, and IN will offer winners a package of technology, entertainment and marketing services.
 NBC and Cablevision Systems have agreed to affiliate with IN on a local basis if either of them is the IVDS lottery winner. The companies will also provide potential support to other IVDS winners in the development of local IVDS programming. Tribune Co. and Gannett have agreed to work with IN and IVDS lottery winners to develop information services to the home in their local markets. IBM Networking Systems Services and IN have agreed to work together on a proposal to leverage IBM's nationwide networking capabilities to support IVDS lottery winners. IN is also contracting for co-location of its IVDS transmission facilities at existing local cell sites. These arrangements will be replicated in most markets offering IVDS licenses.
 Utilizing Interactive Network's interactive television entertainment system, IN will license IVDS winners as local market affiliates, providing a complete entertainment and information system for interactive entertainment, electronic information, home shopping and other television and data services. One lottery winner, and only one lottery winner, will be supported in each market.
 To date, the FCC has approved licensing IVDS spectrum in nine markets -- New York, Los Angeles, Philadelphia, Chicago, Dallas, Houston, Washington D.C., Boston and San Francisco. Two "tentative selectees" will eventually be chosen by lottery in each of the 734 markets. Upon approval of an engineering and logistical report (FCC Form 574), the two "tentative selectees" will be designated as local market IVDS operators. Full licensing of the spectrum is awarded only when the winner provides service to 50 percent of the allotted territory, which must be completed within five years.
 In announcing IN's intention to provide a viable option for IVDS lottery winners, David B. Lockton, president and chief executive officer of IN, cited the value-added benefits of signing with IN. "First of all, it is clear that entertainment is the driving application for interactive television, and we're here now. We've got the competitive experience edge of four years over any other potential offerings," Lockton said. "History has proven that the first qualified provider to enter the market can capture the lion's share. Winning operators will have access to a host of entertainment and data services that will not only provide consumers with the most exciting programming available, but also enhance the operator's potential for local market success."
 Lockton also emphasized another key distinguishing factor of the IN package -- early build-out of the IVDS system. "Under the FCC regulations, an IVDS license holder must build its system to cover 50 percent of the license geography before the permanent license actually is granted," Lockton added. "With IN's strong lead and the capability of its technology to provide early, extensive coverage, the operator can meet the FCC required five-year build-out schedule in a very short time, perhaps within six months. In addition, working with NBC, Cablevision Systems, IBM Networking Systems Services and some of America's most influential newspapers, we will be presenting lottery winners with an unbeatable package."
 Jim Longson, vice president/Technology at Tribune Co., agreed. "We believe there is a strong future for information services to the home and look forward to working with winners in our newspaper markets to develop the most efficient and attractive services for the home information market." Thomas Farrell, president of Gannett New Media, stated that USA Today and Gannett will team with IN to offer information services and marketing support.
 Tom Rogers, executive vice president of NBC and Mark Lustgarten, vice chairman of Cablevision Systems, concurred. "We have agreed to sign with IN should either of us be selected in the IVDS lottery. As longtime supporters of IN, we are well aware of the benefits associated with the company and its technology. Regardless of the outcome of the lottery, we will look to work with other local IN partners to help in devising ways to promote the IN interactive entertainment service to the home."
 IN offers IVDS operators a cost-effective system and its patented technology that has been debugged, tested and is now being utilized with an extensive schedule of interactive programming, IVDS operators will also be offered a menu of services for their local markets including marketing/sales services and operations support services and a technology license. IN stressed that it will support only one winner per market, and that operator will have the added advantage of access to IN's national network.
 Interactive Network is a subscription-based interactive television system using proprietary, patented technology which allows unlimited numbers of participants to easily interact with existing television programming in their homes. At the core of the system is a hand-held, portable, wireless control unit, the first mobile information appliance for consumers. The technology has been developed over 10 years and follows upon the success of IN founder Lockton's FM-based consumer information product, QuoTrek, the first wireless digital consumer electronics product.
 IN currently offers its subscribers in Northern California more than 100 interactive television and independent (stand-alone) programs each day. Programming includes playing along with professional sports, television game shows, news/talk programs and prime-time shows. IN members can also compete with each other for big prizes through the IN network while playing along with sports, game shows and other events.
 While IN plans to affiliate with a strong operator in each market, should neither local winner select the IN package, Interactive Network plans to enter local markets in 1993 as a competitor.
 "We view the IVDS spectrum as an opportunity to accelerate local affiliate programs by three years with a self-financing program, but we fully intend to stay on our national launch strategy should we not be selected by a local IVDS lottery winner in any given market," Lockton stated. "We'll compete using our current PBS television- based network approach. Right now, every PBS TV station in America has IN's interactive data signal available via the vertical blanking interval (VBI). IN's services are ready to be deployed to 93 million homes, 98 percent of the television homes in America."
 Headquartered in Mountain View, Calif., Interactive Network Inc. was formed in 1988 and is backed by some of the premier companies in broadcasting, entertainment and market research including NBC, United Artists (a subsidiary of TCI), A.C. Nielsen, Cablevision Systems Corp., Le Groupe Videotron Ltee and Granada Group. Interactive Network is a publicly held company trading under the NASDAQ symbol INNN.
 -0- 11/12/92
 /EDITOR'S NOTE: Product demonstration and IVDS briefing, today (Thursday, Nov. 12), at 10 a.m. Call The Wall Street Group at 212-888-4848, between 8-9:30 a.m. EST for details./
 /CONTACT: Dave Denison of The Wall Street Group, 212-888-4848; Melinda McMullen of Bob Thomas & Associates, 310-314-6641 for Interactive Network; or Susan Baldwin of IN, 415-903-4067/
 (INNN) CO: Interactive Network ST: New York IN: TLS SU:


AH-JL -- LA009 -- 0041 11/12/92 09:30 EST
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Date:Nov 12, 1992
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