15-Feb-00

ACTV Expands Ownership Of TV/Web Convergence Space As U.S. Patent Office Grants Approval Of New Claims

Core Breakthrough Enables Chat In A TV/Web Convergence Environment

ACTV, Inc. (NASDAQ: IATV) announced that the U.S. Patent and Trademark Office has granted approval for all 20 of the company's new and expanded claims for its HyperTVÆ software. U.S. Patent No. 6,018,768 is the 19th patent granted to ACTV, Inc. for its proprietary software and programming capabilities for the convergence of TV programming with the Internet and for interactive digital television. Among other claims, the new patent covers a core breakthrough of HyperTV that enables chat in a TV/Web convergence environment - combining the power of virtual communities with the delivery of Web content that enhances a TV program. In addition, the patent very specifically covers applications of HyperTV within digital set-top boxes and digital television sets. This ensures ACTV's leading role in TV/Web convergence as digital cable, broadcast and satellite become the norm, and as other digital consumer devices proliferate. The new patent also provides additional coverage for the HyperTV authoring system. ""Our all-inclusive patents - covering 'push,' 'pull,' bookmarking and now chat functionality - enable us to deliver the most advanced and effective solution for the convergence of television and the Internet,"" said William C. Samuels, Chairman and Chief Executive Officer, ACTV, Inc. ""This patent further emphasizes our indisputable role as the leader in TV/Web convergence. The applications covered by the patent significantly broaden the scope of HyperTV and give our company even greater flexibility as we establish HyperTV as an industry standard."" Craig Ullman, ACTV's Keeper of the Magic and Chief Creative Officer, commented, ""The new patent covers the central idea of combining a TV network with enhanced Web content and a virtual community. HyperTV provides a TV network, programmer or advertiser with the unique ability to build a truly dynamic online community around their traditional content and their new Web initiatives. We think these features combined are a core solution for the future of TV."" HyperTV enhances traditional TV content with information, interactivity and chat functionality delivered through the Internet. HyperTV enables TV networks, programmers and advertisers to automatically deliver compelling interactive Web content, Web-based advertising, e-commerce, and community chat features that are synchronized to correspond with a live or pre-recorded TV program (or any other video-based content). HyperTV allows TV programmers to more effectively leverage the Web, while providing advertisers with a powerful new tool for developing one-to-one relationships with consumers. Broadens Patent Portfolio U.S. Patent No. 6,018,768 is a significant addition to ACTV's patent portfolio, the goal of which is to protect the proprietary features of the company's HyperTV and ""Individualized Television"" technologies both in the United States and overseas. In 1999, ACTV acquired U.S. Patent No. 5,761,606 from Wall Street media analyst Thomas R. Wolzien (the Wolzien Process), which augmented ACTV's existing ""push""-related patents for HyperTV. The Wolzien Process provides the means, based on prompts from television or radio programming, for users/viewers to ""pull"" relevant content from the Internet that is synchronized to enhance that programming or to communicate directly with an on-line provider. In addition to being an integrated part of HyperTV, other applications for the Wolzien Process include real-time radio broadcasting (analog and digital), and recorded video programming on VCR's, CD-ROM or DVD players. ACTV obtained U.S. Patent No. 5,907,322 when it acquired the assets of CatchTV, Inc. in November 1999. The patent covers the rights to proprietary and patented technology that enables a television viewer to ""bookmark"" information from the Internet that is related to a TV program or advertisement. By incorporating these capabilities into HyperTV, ACTV can offer TV networks, programmers and advertisers the ability to create new e-commerce revenue streams without pulling viewer ""eyeballs"" away from the TV programming. HyperTV In Action Turner Entertainment Group's TBS Superstation enhanced more than 50 hours of programming with HyperTV during its ""15 Days Of 007/Cyberbond"" movie festival in December 1999. Turner's TNT network used HyperTV to enhance its special concert event, ""One Love: The Bob Marley All-Star Tribute"". On December 31, 1999, The Box Music Network, an MTV Networks company, launched ""Box Fusion"" - a fully-programmed service that integrates HyperTV with The Box's 24-hour-a-day interactive music television programming. New Line Television is enhancing every pay-per-view airing of ""Austin Powers: The Spy Who Shagged Me"" with a feature-length HyperTV experience through February 29, 2000. And Showtime will enhance its Original Sci-Fi Series, ""Stargate SG-1"", with HyperTV beginning February 11, February 25 and March 10. About ACTV, Inc. ACTV, Inc. has pioneered TV/Web convergence programming with its patented HyperTV software solution. The company also created interactive one-to-one digital television with its proprietary ""Individualized Television"" and ""Individualized Advertising"" software and programming capabilities. ACTV offers superior, practical solutions for television programmers, advertisers, cable operators, educators and consumers looking to leverage the emergence of digital television and the broadband delivery infrastructure. ACTV has relationships with many of the dominant players in the Internet, television and digital technology fields, including key strategic investments from Liberty Digital, Inc. (NASDAQ: LDIG) and Motorola's (NYSE: MOT) Broadband Communications Sector (formerly General Instrument Corporation (NYSE: GIC)).

For more information, visit ACTV's Web site at http://www.actv.com or visit http://www.hypertv.com.