| USA Video Interactive Corp US Shares issued 73,466,089 2000-09-19 close $5.05
 Wednesday Sep 20 2000 News Release
 
 Mr. Edwin Molina reports
 USA Video Interactive has been awarded a contract to supply the district of Columbia's public schools with a complete interactive video streaming solution capable of delivering full-motion video to classroom computers or work stations in real time or on demand. There are 147 public schools in the district; installation of a USA Video Interactive system in one of these schools will be completed within two months. Pending successful installation of this system, which is worth approximately $300,000, this contract may be expanded to include the other schools.
 "We were eager to seamlessly integrate numerous applications in a single, high-quality system," said Stanley Johnson, director of instructional technology for D.C. Public Schools. "After a lengthy evaluation process, we chose USA Video Interactive because of their unique architecture, cost-effective solution, and technical and engineering strength. USA Video Interactive's unique features support any learner, any place, any time. It's a real-time desktop experience that supports our technology initiatives. I am trying to identify media-rich solutions for the schools of the nation's capital and to ensure that in the next 24 to 36 months, as convergence becomes the norm, the district's 147 schools and 70,000 students are prepared for it. USA Video Interactive is a solution that holds great promise for us achieving this goal."
 Edwin Molina, president and chief executive officer of USA Video Interactive, said USA Video Interactive has engineered for D.C. Public Schools as complete a system as is available anywhere on the market. "It demonstrates the adaptability of our unique architecture to a wide range of uses, all within a single system that's economical, simple to administer and maintain, and easy to use," Mr. Molina said. "It is the ideal solution for individual schools, campus settings and entire school districts."
 The core of the system is USA Video Interactive's real-time Webcast architecture, which provides simultaneous encoding of 15 live channels delivered from several satellite dishes and multiple VCRs; delivery of encoded video over an existing school system backbone; selectable encode rates for each stream; live Webcast and postevent broadcast of video; multicast and unicast modes of delivery; videoconferencing capability at client computers; video E-mail on a school intranet system; portable video capture and encoding unit with integrated carnera inputs, multicast to clients, postevent playback and message board for student questions; and Web interface with links to video channels.
 The solution provides encoder and server hardware and peripherals (such as power controller, monitor, keyboard, mouse, uninterruptible power supply, etc.), software and technology licences, technical support including first-year maintenance, assembly and delivery, installation support and training, off-the-shelf functionality software, and customized software development.
 "We are actively developing systems like this to be quickly assembled and shipped in a variety of configurations to meet the specific needs of dozens of types of institutional clients," Mr. Molina said.
 WARNING: The company's relies upon litigation protection for "forward-looking" statements.
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