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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS FOR: CHANNEL I CANADA INC. CANADIAN DEALING NETWORK SYMBOL: CNLI JANUARY 17, 1997 Channel i Canada Inc. - Company Update TORONTO, ONTARIO-- Update Channel i is pleased to submit an update on the development of its TV Connect box which has reached the need of its R & D stage and is moving on to production. The management is pleased to report that it has sent a representative tot he Consumer Electronic Show in Las Vegas and can state that there is no visible direct competition to the Channel i TV set-top box in its configuration and range of features. The only set-top box in full production and being distributed in part of the world at present is the WEB TV box sponsored by Sony. The Web TV box, as with the other boxes advertised for later distribution, is strictly an Internet appliance - a single purpose machine with little memory and not well suited for other functions. By contrast, the TV Connect box (ITC) of Channel i, although it is advertised mainly for its ability to access interactive services and the Internet through the TV, is actually a full fledged Network Computer. As a matter of fact, Channel i is presently setting up new corporate offices in Montreal which will require 10 computers for its internal network for its employees. All 10 will be ITC network computers, in the same configuration as offered to the public. These ITCs will have all the capacity of a high speed computer you can buy at a much higher price in stores. As a consequence, Channel i will not only be putting a basic appliance in every home, but a complete and very user friendly full purpose computer. We will gradually educate our clientele, not familiar with computers, to use all the functions it is capable off. The more sophisticated users will have the capacity to upgrade their TV Connect box to equal in performance the most powerful computers available today, and hook up the box to a monitor screen, a printer, their Local Area Networks, and more. Vectron Technologies, the company responsible for the design and production (on an exclusive basis) of the ITC 577 (Interactive TV Computer) stated that the production prototype will be finalized late January and submits the following technical update: /T/ Here is the technical description of the production unit: - Physical dimensions are: 9.75"W x 3"H x 12"D - Processor: Pentium 90 Mhz - Memory: 8 M ram - Modem : 33.6Kb - Bit 3D graphic accelerator - Video output Composite and S-Video - 16 Bit 3D Sound - Storage device: CD-ROM drive 4X - Operating System: Microsoft Windows 3.11 + Internet Explorer 3.0 with real audio support - Infrared Remote Keyboard - Extra Software includes 3D games, CD-I and MPEG movie player, CD audio player. /T/ The system is completely upgradable and includes the following options: Floppy disk 1.44, Hard disk 1.2G, Windows 95, Video Camera interface (video conferencing), Lan interface, additional Ram and a DVD player. The CD-ROM gives users the possibility of accessing PC games, playing Audio and Video CDs, and up to 600 Meg of software including Web Phone and Video Phone. It also provides the company the extra market off CD software sales. A number of production prototypes will be available by the end of January, followed by the production of Beta units for field trials. Two models will be field tested: the ITC 557 and the ITC 557 VC with video camera and all the software necessary for video phone and video conferencing. -30-
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