1-Mar-00

Satellite Leader Pegasus Communications Chooses Liberate To Deliver Digital Interactive Television Services

Licensing Agreement Readies Pegasus To Introduce The First Advanced Digital Services Targeted To Rural American Consumers

Pegasus Communications (NASDAQ: PGTV) and Liberate Technologies (NASDAQ: LBRT) announced today that Pegasus has signed a definitive licensing agreement with Liberate to use the Liberate TV Platformô to deliver interactive television services to its DBS (digital broadcast satellite) subscribers beginning later this year. Pegasus is the third largest DBS provider, and tenth largest provider of multi-channel video (including both cable and DBS companies), in the United States, serving more than 1.1 million subscribers in rural areas of the United States. Liberate is a leading software provider for delivering enhanced television content to set-tops and other information appliances. Pegasus plans to distribute these new interactive television services to its existing DBS subscribers, as well as to new subscribers signed up through its Pegasus Retail Network, a network of over 2,500 independent retailers providing distribution and service in 41 states. The Liberate agreement also enables the introduction of additional Pegasus-branded advanced digital services. Marshall W. Pagon, President, Chairman and CEO of Pegasus Communications, commented, ""This agreement with Liberate will enable us to provide our DBS subscribers digital interactive services that will add value to the digital multi-channel television services that we provide them today. Moreover, our agreement with Liberate is an important step in our effort to introduce a broadening array of advanced digital services to all rural American consumers. There are nearly 30 million households located in rural areas outside of America's metropolitan centers. This is a significant market underserved by the major cable and telephone companies. As the only one of the ten largest multichannel providers exclusively focused on service to rural areas, Pegasus is committed to filling this gap and providing advanced digital services to consumers in these communities delivered via satellite."" ""With DIRECTV on AOL, StarTV in Asia, and now Pegasus, Liberate is demonstrating its leadership in satellite - helping DBS customers worldwide make interactive TV a reality,"" said Mitchell Kertzman, President and CEO of Liberate. ""This licensing agreement with Pegasus will broaden Liberate's reach to the over one million households in 41 states that Pegasus supports. We look forward to working with Pegasus to expand their consumer reach with interactive services."" Pegasus will use the Liberate TV Platform, which includes Liberate Connectô server software and Liberate TV Navigatorô client software, to enable its new advanced TV centric services. Liberate Connect offers a service management platform to deploy applications that support a service provider's distinct services and brand identities. Liberate TV Navigator enables the service provider to deliver applications to set top box devices that integrate the Internet's interactivity with TV-based content. About Pegasus Communications Corporation Pegasus Communications Corporation (http://www.pgtv.com) is one of the fastest growing media companies in the United States. We are the largest independent provider of DBS services to rural parts of the United States on the DIRECTVÆ platform, serving approximately 1.1 million DBS subscribers in 41 states. Pegasus is also a broadcaster operating and/or programming ten TV stations serving 2 million TV households in smaller markets affiliated with FOX, UPN and the WB. About Liberate Liberate Technologies is a leading provider of a complete software platform for delivering Internet-enhanced content and applications to information appliances, such as television set-top boxes and game consoles. Liberate's Internet-based client and server software allows network operators, such as telecommunications companies, cable and satellite television operators and Internet service providers to provide consumers access to network operator-branded applications and services. Headquartered in San Carlos, California, the company has sales offices in the US and the UK. Liberate investors include: Acer, America Online, Comcast, Cox Communications, General Instrument, Hambrecht & Quist, Lucent Technologies, Netscape, Nintendo, Mediaone Ventures, Oracle, Rogers Communications, Sega, Shaw Communications, Sony, Sun Microsystems and Wind River Systems. Liberate, Liberate TV Platform, Liberate TV Navigator, and Liberate Connect and the Liberate logo are trademarks of Liberate Technologies. Source: Liberate Technologies