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TiVo Affirms Second Quarter and Fiscal Year 2002 Outlook, Announces Preliminary Guidance for Fiscal Year 2003.

- Fiscal Year 2003 outlook affirms TiVo's subscriber momentum and

expanding market leadership, anticipating approximately 85% growth in

subscriber base;

- Fiscal Year 2003 revenue expected to triple compared to Fiscal Year 2002

revenue guidance;

SAN JOSE, Calif., July 10 /PRNewswire/ --

TiVo Inc., (Nasdaq: TIVO) the creator of and leader in personal television, announced today that it is affirming previously announced guidance for the second quarter and full year of fiscal year 2002 and is issuing preliminary guidance for fiscal year 2003, ending January 31, 2001. A conference call to discuss Fiscal Year 2003 guidance will be held at 2:00 p.m., Pacific Time on Tuesday, July 10, 2001.

"TiVo is continuing to strengthen its leadership position in Personal TV services and is experiencing subscriber growth that is both in line with expectations and encouraging for the category as a whole," commented Mike Ramsay, President and Chief Executive Officer of TiVo Inc. "Recent developments at TiVo, particularly centered around the opportunities for technology licensing resulting from the issuance to TiVo of an important patent for Personal Video Recorders, as well as requests from the financial community for additional information, have led us to disclose guidance for our next fiscal year. This guidance, showing continued strong growth in subscribers, also reconfirms TiVo's goal to reach cash flow breakeven by the end of our next fiscal year. This remains an extremely important objective for the company."

New Subscriber Additions in Fiscal Year 2003 Expected to Grow by 85% Over Fiscal Year 2002 Guidance.

"We expect new subscriber additions in fiscal year 2003 to be approximately 300,000 and expect to end fiscal year 2003 with over 650,000 total subscribers to the TiVo Service, an 85% increase in total subscribers compared to the prior fiscal year guidance," continued Mr. Ramsay. "In addition to TiVo's continued marketing investment, our marketing and distribution partners will continue to play an important role in the growth of the Personal TV category."

Fiscal Year 2003 Guidance Calls For Total Revenue to Triple Over Fiscal Year 2002 Guidance; Non Subscription Revenue Expected to Reach Approximately 40% of Total Revenue.

"For the fiscal year ending January 2003, our range of expected total revenues is $63 million to $72 million, approximately three times fiscal year 2002 guidance for total revenue of $20 million to $24 million," continued Mr. Ramsay. "We expect the non-subscription component of total fiscal year 2003 revenues to be approximately 30% - 40%. The main sources of non-subscription revenue are expected to be advertising and technology licensing. The advertising community is now embracing TiVo as a revolutionary new way to advertise on TV as evidenced by recent charter advertiser announcements. In addition, we have a number of licensing deals in process which, if completed, are expected to generate up-front cash which will be recognized as revenue over multi-year periods."

New Operating Model and Revenue Generating Activities Support Company Goal to Achieve Breakeven Cash Flow Level by the End of Fiscal Year 2003.

"In April of this year, we launched a new operating model which significantly reduces our operating expenses for the current year," continued Mr. Ramsay. "This new model has provided us further visibility into forecast results for next year. The resulting guidance that we are giving for fiscal year 2003 forecasts us reaching cash flow breakeven by the end of the year."

TiVo's current fiscal year 2002 and new fiscal year 2003 guidance is shown below.

TiVo Financial Guidance

(in millions, except

subscriber numbers) Fiscal Year 2002 Fiscal Year 2003

(Ending 01/31/02) (Ending 01/31/03)

Net Activations 180,000 - 220,000 280,000 - 320,000

Cumulative Subscribers 334,000 - 374,000 634,000 - 674,000

Total Revenues $20 - $24 $63 - $72

Cost of Service $21 - $23 $30 - $35

Gross Profit (Loss) $(1) - $1 $33 - $37

Sales and Marketing $29 - $31 $33 - $37

Sales and Marketing, Related Parties $69 - $72 $51 - $57

Research and Development $28 - $30 $27 - $31

General and Administrative $20 - $22 $18 - $20

Total Operating Expenses $167 - $178 $159 - $180

Operating Loss $(145) - $(155) $(96) - $(108)

Net Cash Used in Operating Activities $110 - $120 $35 - $40

Conference Call Dial-in Information: Note: this conference call will be web cast live on

What: TiVo, Inc. Fiscal Year 2003 Guidance Conference Call

When: Tuesday, July 10, 2001; 2:00 p.m. Pacific Time

Dial-in: 913-981-4900; Passcode: 625185

Replay: 719-457-0820; Passcode: 625185

Web Cast:

About TiVo, Inc.

TiVo is the creator of and leader in personal television. Founded in 1997 with the mission to dramatically improve consumers' television viewing experiences, TiVo developed a technology that serves as a platform for delivering a variety of home entertainment services. TiVo's Personal TV Service(TM) simplifies the way we watch and enjoy television by digitally recording television shows, without videotape, so you can watch what you want, when you want to watch it. TiVo was the first to deliver on the promise of consumer choice and control over TV viewing, building a loyal and passionate subscriber base.

TiVo's leadership is grounded in its ability to forge critical partnerships, working together with the giants of the media, technology, consumer electronics, and television industries. Industry support of TiVo is reflected in its partner roster that includes AOL, BSkyB, DIRECTV, Philips, SONY, Thomson and the leading cable and network television companies. Today, the TiVo Service is available in the United States on the Philips Personal TV Recorder(TM) and the Sony Digital Network Recorder (TM) in nearly 3500 consumer electronics retail and online outlets and in the UK under the Thomson Scenium brand. TiVo is headquartered in San Jose, CA. Additional information can be found at .

This release contains forward-looking statements regarding TiVo's business, customers or other factors that may affect future earnings or financial results. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include delays in development, results of promotion and demand generation activities, the anticipated launch of the AOL/TiVo combination receiver, expected revenue, advertising, promotion and licensing activities, competitive service offerings and lack of market acceptance. These risks and uncertainties are more fully described in the TiVo Annual Report on Form 10-K for the period ended January 31, 2001 and form 10-Q dated April 30, 2001 filed with the Securities and Exchange Commission.

NOTE: TiVo is a registered trademark of TiVo Inc. in the United States and other jurisdictions. All other company or product names mentioned may be trademarks or registered trademarks of the respective companies with which they are associated.

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Geographic Code:1USA
Date:Jul 10, 2001
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