DAVIS, Calif., July 7 /PRNewswire/ via NewsEdge Corporation -- OnChannel, Inc. ( http://www.onchannel.com ) , the leading developer of operating system software for sub-$199 set-top PCs, today announced the introduction of the OS 2000 Beta Test Program for PC manufacturers.

Scheduled to begin July 31, OnChannel will be shipping specifications and media based on their OS 2000 hardware reference platform to select registered manufacturers nationwide. OnChannel has been testing a prototype based on the reference platform for the last six months.

"With the recent introduction of the $199 PC, it was obvious that traditional PC manufacturers wanted to get a foot into the low-end Internet appliances market," stated Eric Powers, Vice President of Production. "OnChannel is providing that opportunity to manufacturers everywhere. "

"If you're a PC manufacturer, and you see a potential fifty-five million unit appliances market emerging over the next few years, and you have an opportunity to tap that market now without changing your manufacturing operations -- you do it!" remarked Daniel Nilsson, President of OnChannel.

OnChannel OS 2000 is derived from the popular Linux operating system, the fastest growing OS worldwide. When set-top PC's with OS 2000 reach consumers later this year, every popular application announced for Linux will be available to OnChannel customers. In addition, OnChannel is planning on supporting voice-over-IP Internet phone calls using industry standard technology, and a wide variety of computer peripherals and add-ons.

"These set-top boxes that you see announced on a daily basis ... they can't compete with existing and future PC technology that OnChannel has conveniently packaged into a set-top box ... consumers will reject them when they see the flexibility and performance that only these set-top PCs can provide," concluded Mr. Nilsson.

About OnChannel

OnChannel, Inc., is a privately held California corporation established in 1999 to develop the next generation consumer-friendly operating system and supporting technologies for low-end computers. Beta program registration or general information about OnChannel products and services is available worldwide through the OnChannel web site, http://www.onchannel.com, or by calling 530-297-7200.

SOURCE OnChannel, Inc.

/CONTACT: Daniel Nilsson, President of OnChannel, Inc., 530-297-7200, or fax, 530-750-2649, or [email protected]/ /Web site: http://wwww.onchannel.com