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USA Video Interactive Signs With IC One to Provide Video-on-Demand to 1.5 Million Homes

09:02 a.m. Aug 20, 1999 Eastern

MYSTIC, Conn.--(ENTERTAINMENT WIRE)--Aug. 20, 1999--In collaboration with its subsidiary Merging Rivers Media, USA Video Interactive (NASD: USVO; ASE: US; www.usvo.com) has signed a Letter of Intent to conclude an agreement with IC One Inc., (NASD: SCTN; www.icone.com) to provide Video-on-Demand(TM), Wavelet compression, educational and other content in a deployment to 150,000 apartment units within 12 months and more than 1.5 million apartment units over the next 36 months. IC One had previously announced it would supply 1.5 million set-top boxes and "Rent Smart Cards" to provide Internet access and other services to its affiliated apartment communities in Nevada, Arizona and elsewhere as part of an agreement with Global Capital Limited.

The Letter of Intent projects that USA Video Interactive's technology will be incorporated in these set-top boxes before installation. Additionally, USA Video Interactive will provide video server clusters for strategic placement throughout the apartment communities, and will provide digitized content and video hosting services through its video portal on the UUNET Internet network. UUNET is an MCI WorldCom company (Nasdaq: WCOM; www.uu.net).

"We are glad to see interest from the marketplace in providing driven content for our set-top box contract," Dave Simon, IC One Senior Vice President of Technology, said today. "We are aggressively seeking to improve the market position of our partners and ourselves, and USA Video Interactive's technology is compelling."

"This is another segment of the vast Internet market where we intend to make our mark," said Edwin Molina, President of USA Video Interactive. "Helping provide the full array of bundled services demonstrates where the Internet is headed and how fully involved it is becoming in our everyday lives."

The agreement between IC One and USA Video Interactive will be the basis of a contract once pricing structures and delivery schedules are established and due diligence by both parties is completed.

IC One is a leader in the fast-growing, integrated smart-card loyalty and fundraising solutions marketplace. It recently expanded to include multi-language touch screen, Internet-enabled system of kiosks, as well as home-based PC access to on-line shopping featuring 3-D Preview Marketing(TM) and virtual tours. IC One recently announced the acquisition of an Internet Service Provider. With a back end powered by an IBM (NYSE: IBM; www.ibm.com) DB2 database, IC One plans to be able to supply loyalty solutions to merchants both virtual and physical.

USA Video Interactive is an international designer and supplier of high-tech Video-on-Demand(TM) systems, services and solutions. Merging Rivers Media is USA Video Interactive's West Coast subsidiary, focused on providing the USA Video Interactive technology and full advertising-agency services to the entertainment industry. The USA Video Interactive technology allows users to view streaming video or to access digitized video libraries, including movies, sports, other entertainment, educational resources, corporate training seminars and other archives. The USA Video Interactive technology gives users full-motion video; the unique flexibility of standard, VCR-like controls of play, fast forward, reverse and pause; and the convenience of a standard internet-browser format for access. USA Video Interactive can utilize MPEG-1, MPEG-2 or MPEG-4 compression techniques but prefers its Wavelet compression technology. The USA Video Interactive Wavelet technology allows direct streaming and download and play options; provides video images significantly faster and at a higher degree of resolution than with previously available methods; significantly overcomes bandwidth restrictions; and eliminates the blockiness and slowness of current technologies, all at a lower cost. An essential feature of the USA Video Interactive technology is that it allows extremely high compression ratios while retaining broadcast quality.

USA Video Interactive Corp.

Corporate Headquarters Office: 70 Essex Street; Mystic, CT 06355; (800) 625-2200; (860) 572-1560.

Merging Rivers Media: 6380 Wilshire Blvd.; Suite 911; Los Angeles, CA 90048; (310) 441-0772.

Canada Office: 837 West Hastings Street; Suite #507; Vancouver, B.C. V6C 3N6.

Trading symbol on the US NASD OTC BB: USVO; SEC 12g3-2(b) Exemption: #82-1601. Trading symbol on The Alberta Stock Exchange: US.

Standard & Poors Listed. CUSIP 902924208; Video-On-Demand(TM) and Video Yellow Pages(TM) are trademarks of USA Video.

The Alberta Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Copyright 1999, Business Wire

Newsbit furnished by:

A: NetShift Software Ltd.
A: Hughenden Yard, Marlborough, Wilts,SN8 1LT, UK
T: +44 (0)1672 511 094
F: +44 (0)1672 511 078
E: [email protected]
W: www.netshift.com

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