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SPECTRADYNE CHALLENGES COMSAT VIDEO PRESS CLAIMS ON INFRINGEMENT SUIT

 RICHARDSON, Texas, June 28 /PRNewswire/ -- SPI Holding Inc. (AMEX: SPI/B) and its wholly owned subsidiary Spectradyne Inc. today said that, in light of inaccuracies contained in a press release issued by Comsat Video Enterprises on June 22, 1993, it is issuing the following statement:
 "Recent statements to the press by Comsat that Spectradyne has dropped its initial patent infringement claims against its On Command Video subsidiary are both misleading and inaccurate. Contrary to the press release issued by Comsat on June 22, 1993:
 -- Spectradyne has not abandoned its suit against On Command Video.
 In court papers filed on June 17 in Federal District Court in San Francisco, Spectradyne voluntarily amended its original patent infringement lawsuit against On Command Video and Comsat to include additional causes of action for copyright infringement and direct infringement claims against Comsat for illegal use of Spectradyne's patented technology. In the original suit, Comsat had been charged only with inducement to infringe one of Spectradyne's patents.
 -- Spectradyne's case has been strengthened by voluntarily substituting one patent infringement claim for another.
 Spectradyne voluntarily substituted claims related to a patent that was due to expire in one year and replaced it with claims related to a patent that does not expire for 13 years -- thus strengthening our case.
 -- The court has not ruled on this case.
 On Command's statement that the `court will also find Spectradyne's new claims without merit' falsely implies that the court has ruled on the original complaint.
 The June 17 hearing relative to the suit was merely a status conference where both parties reported on progress in this suit.
 -- Spectradyne is the world's largest video-on-demand provider.
 On Command Video's claims in the press to be the world market leader in the video-on-demand business are not supported by the facts, either in terms of size or technology. Spectradyne's Guest Choice(TM) on- demand system is installed in 130,000 U.S. hotel rooms, approximately twice the number of On Command Video installations. What's more, On Command operates only in the United States, while Spectradyne's operations are worldwide. As for technology, Spectradyne recently announced it has entered into a strategic alliance with EDS of Dallas, to market a revolutionary new compressed digital video-on-demand technology. No other company in our industry has comparable technology."
 Matthew Hutchins, Spectradyne general counsel, said: "Spectradyne has expanded its causes of action against On Command Video and Comsat, and we intend to vigorously pursue enforcement of our rights against both defendants. Any suggestion to the contrary is wishful thinking on the part of the defendants."
 Spectradyne has been the world's leading provider of in-room, pay- per-view entertainment and information services since 1971 and the largest of on-demand video since the 1990 introduction of its Guest Choice system, now installed in approximately 130,000 of the company's 700,000 guest rooms served. Spectradyne markets its products in the United States, Canada, Mexico, the Caribbean, Australia and the Pacific Rim.
 -0- 6/28/93
 /CONTACT: Michael Sitrick or Michael Kolbenschlag of Sitrick And Co., 310-788-2850, for Spectradyne Inc./
 (SPI)


CO: Spectradyne Inc.; SPI Holding Inc.; Comsat Video Enterprises;
 On Command Video ST: Texas IN: ENT CPR SU:


MF-JL -- LA011 -- 6096 06/28/93 08:50 EDT
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Publication:PR Newswire
Date:Jun 28, 1993
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