DIVAô, the leader in VOD solutions for the cable television industry, and MediaOne, the Broadband services arm of MediaOne Group (NYSE:UMG), have signed an agreement to deliver DIVA's video-on-demand service to cable customers in select locations. This will mark the first major-market deployment by a top-five multiple system operator of DIVA's video-on-demand service over hybrid fiber coax cable television systems anywhere in the world.The agreement calls for the installation of DIVA's video-on-demand hardware and enabling software, a controlled commercial trial, and subsequent full commercial launch. The companies said they have agreed on the location and schedule of the video-on-demand deployment, and said they will be announced at a later date.MediaOne customers involved in the initial deployment will have immediate, in-home access to a diverse and continuously updated selection of hundreds of movies, children's shows and specialty programming with high-quality digital picture and sound, plus the ability to pause, fast-forward and rewind.""We have been working for many months to fulfill the promise of broadband technology for our customers,"" said Judi Allen, Senior Vice President, Video, MediaOne. ""In addition to recent enhancements to our video product - such as the great features of our new, 200-channel Digital NexTV service - the benefits of DIVA's technology will provide MediaOne video customers with even more choice and greater value. Deployment of video-on-demand services truly will take cable television to the next level. We are proud to count DIVA as a partner in these efforts.""""The cable television industry has always been about availability and choice, and no company has been more committed to delivering on that than MediaOne,"" said David Zucker, President and CEO of DIVA. ""We have been the only company providing video-on-demand to cable systems for the past two years, and what we have learned is that it is a very compelling and lucrative service. To now be working with MediaOne to incorporate the choice, convenience and control of video-on-demand with MediaOne's incredible lineup of digital channels is very exciting, both from the standpoint of providing customer value and continuing to move the industry forward.""DIVA's flexible VOD solution, which is seamlessly integrated with General Instrument's DCT series of set-top boxes, consists of several elements, including video servers, management centers, access network multiplexers and optical networks. DIVA combines these elements to create a cost-effective on-demand delivery system for cable operators which scales to accommodate variables such as title storage, deployment locations, and number of customers served.DIVA will provide MediaOne with the DIVA Video Server; the DIVA System Manager, a comprehensive suite of on-demand networking and services software components that includes billing and content management; and the DIVA Digital Link (DDL), the critical bridge between the DIVA Video Server and the cable operator's hybrid fiber coax (HFC) network. In addition, DIVA will work with MediaOne to customize navigational interfaces, and provide additional support services through its 24/7 network operations centers.About Media OneMediaOne, the nation's leading broadband services company, provides entertainment, information, and communications services to about five million customers. MediaOne Group (NYSE: UMG) is one of the world's largest broadband communications companies bringing the power of broadband and the Internet to customers in the United States, Europe and Asia. The company also has interests in some of the fastest-growing wireless communications businesses outside the U.S. For 1998, the businesses that comprise MediaOne Group produced $7.1 billion in proportionate revenue. On May 6, 1999, the company entered into an agreement to merge with AT&T.About DIVA SystemsDIVA Systems Corporation (www.divatv.com) is a privately held company founded in June 1995 and is headquartered in Redwood City, California. DIVA commercially launched its digital video-on-demand service in cable television systems in the fall of 1997 and is now deployed in six cable systems in the U.S.For more information, contact DIVAís Patrick J. Gushman at 650 779 3086 or MediaOne Groupís Steve Lang at 303 858 3406.