Wednesday April 21, 11:09 am Eastern Time
Company Press Release
ACTV, Inc. Acquires Key Online Media Patent From
Wall Street Analyst Tom Wolzien
Combination of Wolzien Process with ACTV's
Existing HyperTV(TM) Patents Forms Basis of
E-Commerce Platform for TV/Internet Convergence
NEW YORK--(BUSINESS WIRE)--April 19, 1999--ACTV, Inc. (NASDAQ:IATV -
news) today announced that it has acquired a core online media patent from Wall Street media analyst Tom Wolzien regarding
a proprietary method for linking video and audio programming with the Internet.
The Wolzien Process, when combined with ACTV's existing proprietary HyperTV(TM) application and patents, will enable
ACTV to offer the first comprehensive software solution for the convergence of video and audio with the Internet. In addition
to providing a superior method for improving the convergence experience for consumers, the combination of the Wolzien
Process and HyperTV creates enormous e-commerce opportunities by incorporating enhanced Internet content with audio or
video.
The Wolzien Process provides the means for consumers to ''pull'' relevant content from the Internet to augment television and
radio programming and commercials. HyperTV enables content producers and advertisers to ''push'' compelling Internet
content to consumers -- all synchronized to a television program or other video or audio-based program. Together, HyperTV
and the Wolzien Process fill the gaps and create new synergies between television, radio and online media. They use the vast
reach of television and radio to deliver consumers to online services, while using the ability of the Internet to provide powerful,
new marketing and e-commerce capabilities to complement video and audio programming.
William C. Samuels, chairman and CEO of ACTV, Inc., said: ''When we combine HyperTV with the Wolzien Process, the
potential is vast, ranging from electronic commerce and entertainment, to education and public service. Like Tom, we have had
a consistent vision for many years which is now coming to fruition. We're thrilled to have acquired the patent from someone
who has such strong insight into our industry and an expert understanding of this tremendous opportunity.''
Convergent media environments are already generating tremendous consumer demand and quickly emerging as a lucrative new
arena for e-commerce. According to a January survey by Showtime Networks, nearly one in five U.S. households exhibit
convergent behavior, simultaneously viewing television and accessing the Internet. This represents more than 18 million
convergent households in the U.S., an increase of more than 80% since December 1997. International Data Corporation
(IDC) estimates that by the year 2000, business-to-consumer e-commerce revenues will reach $50 billion. IDC also reports
that business-to-business e-commerce revenues will exceed $250 billion.
In addition to the HyperTV convergence applications available today, the acquisition of the Wolzien patent fortifies ACTV's
position for the rollout of next-generation digital set-top boxes, cable modems, and other consumer devices made possible by
advances in digital and broadband technology.
ABOUT THE WOLZIEN PROCESS & HYPERTV
With HyperTV, for example, a cable music network can allow viewers to log onto its Web site and ''push'' synchronized
content to them that directly corresponds to the music video they are watching. The content can include lyrics to the current
song, bios of featured band members, interactive trivia questions about the artist, or opportunities to purchase concert
merchandise. During a break, a car commercial can be enhanced by delivering information from the company's Web site or the
site of a local dealership where users receive more information about the car. With the addition of the Wolzien Process,
consumers can ''pull'' -- directly from a link embedded in the TV program or commercial -- related content from the Internet
that enables them to purchase merchandise, arrange test drives of automobiles, or find out additional information about a
product or service.
''While television and radio do great jobs of delivering mass audiences, the Internet provides consumers with the additional
information, interactivity and sense of community they desire,'' said Craig Ullman, an inventor of HyperTV and ACTV's
Keeper of the Magic. ''The combined experience of television and/or radio with the Internet is much more powerful than either
is alone.''
The Wolzien Process, U.S. Patent No. 5,761,606, covers a proprietary process for allowing consumers to ''pull'' information
from the Internet that is synchronized to a specific video program, audio program, commercial message or news story
delivered via broadcast television, cable, satellite or pre-recorded media. The Wolzien Process was the subject of a March
15, 1999 story by TheStreet.com.
HyperTV enables content producers, such as television programmers and advertisers, to -- simultaneously, directly and in real
time -- ''push'' to consumers compelling Internet content that directly corresponds to a television program or other video or
audio-based program. Using ACTV's proprietary and proven methods, HyperTV permits the simultaneous and synchronized
delivery of video, audio and Web URLs (Uniform Resource Locators) to users. HyperTV also has a database capability that
captures valuable permission-based marketing information, such as consumer demographics and preferences.
Today, HyperTV users can watch video on a standard television set while viewing synchronized web content and interacting
with other users via their computer. Or, they can receive streamed audio or video as well as synchronized web content on their
computer. As digital cable and broadband technology proliferate, users will be able to enjoy a HyperTV experience with
video, audio, synchronized web content and chat simultaneously delivered to a TV set or a personal computer.
U.S. Patent No. 5,761,606, was granted to Wolzien last June, after being filed more than three years ago. The patent was
purchased via ACTV subsidiary HyperTV Networks, Inc., and will be held by a newly formed venture called Media Online
Services, which will be owned and operated by HyperTV Networks, Inc. The venture will work in coordination with ACTV's
subsidiaries (ACTV Entertainment and HyperTV Networks, Inc.) to exploit the company's leading-edge technology and
programming capabilities for digital television, broadband, and TV-Internet convergence. The acquisition of the patent from
Wolzien was for an undisclosed amount of stock, cash, and other consideration.
ATTENTION TO SPECIAL POPULATIONS
In addition to broad applications in entertainment, education and e-commerce, ACTV and Wolzien both see major benefits in
this new technology for special groups within the population. Non-profit public health organizations will be able to receive
licenses to use the technology without charge in their television programming and public service announcements. For example,
television announcements regarding AIDS, alcoholism, or mental illness could link a viewer directly to a web site where the
person could get immediate assistance or information at the push of one button on the television remote.
The technology can also benefit disabled persons in the same way, if they can push the button to link the television with the
web. However, many consumer electronic devices are not accessible to those with major disabilities. Massively disabled
persons depend on special adaptive controls that convert the smallest of movements or air pressure changes into control data.
Consumer electronics devices often don't have a way to accept this data. In a small attempt to call attention to this trend,
manufacturers of hardware that incorporates the Wolzien Process will be encouraged to make their equipment accessible to
the disabled through license incentives.
ABOUT ACTV, INC.
New York-based ACTV, Inc. is a leader in interactive digital television and a pioneer in TV-Internet convergence. Whether
it's for the rapidly emerging digital television platform, the Internet or a convergent TV-Internet experience, ACTV uses its
patented software applications -- HyperTV(TM) and ''Individualized Television'' -- to dramatically enhance any television,
video or audio program. ACTV is committed to improving the television and Internet experience for consumers by enabling the
creation of more compelling content, while allowing programmers, advertisers and others to establish valuable one-to-one
relationships with consumers.
ACTV has relationships with many of the dominant players in the Internet, television and digital technology fields, including:
Liberty Media Group (NYSE:LMG.A - news, LMG.B - news); AT&T Broadband & Internet Services (formerly
Tele-Communications, Inc. - NYSE:T); General Instrument Corporation (NYSE:GIC - news); Scientific-Atlanta, Inc.
(NYSE:SFA - news); Sun Microsystems (NASDAQ:SUNW - news); FOX Sports Net; TCI Music, Inc. (NASDAQ:TUNE
- news, TUNEP - news); TV Guide Networks, Inc. (NASDAQ:TVGIA - news); SkyConnect, Inc.; Pioneer Digital
Technologies, Inc.; Cablevision's Rainbow Sports; and The Sarnoff Corporation. In September 1998, ACTV Entertainment
and Liberty Media formed a joint venture, LMC/IATV Events, LLC. ACTV Entertainment and HyperTV Networks, Inc. are
subsidiaries of ACTV, Inc.
For more information, visit ACTV's Web site at actv.com.
Disclaimer: This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act
of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or
performance, and underlying assumptions and other statements which are other than statements of historical facts. These
statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance,
changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks
defined in this document and in statements filed from time to time with the Securities and Exchange Commission. All such
forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly
qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking
statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or
circumstances after the date hereof.
NOTE TO EDITORS:
ACTV will hold a conference call today at 11:30 a.m. ET regarding today's announcement and other material events.
Chairman and CEO William C. Samuels and Chief Creative Officer Craig Ullman will provide opening remarks, followed by a
brief question and answer session. To participate, dial 1-888-428-4473 and specify ''ACTV conference call.''
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