Laser Video Network signs agreement with IBM for college television network; Contract includes system upgrade, network upgrade, financing

Business Wire, Jan 12, 1996

NEW YORK--(BUSINESS WIRE)--Jan. 12, 1996--Laser Video Network, Inc. (NASDAQ:LVNI) and IBM announced today an agreement to provide a major technology update to LVNI's College Television Network.

The network will be populated with technology that will allow for an array of new and sophisticated services, such as insertion of news and local programming, localized advertising, connection to cable programming and broadcast capability.

The agreement encompasses a system-wide technology upgrade to new IBM servers and integrated hardware; a 24-hour service call center for service and dispatch; daily digital video satellite transmissions of LVNI's content, and a comprehensive financial package, which includes the financing of all IBM and vendor components through IBM Credit Corporation. The terms of the agreement are contingent upon a letter of credit to secure payment.

The College Television Network is the largest private commercial television network on U.S. college and university campuses with 218 contracted campuses reaching an estimated 566,000 students daily. The private interactive network enables advertisers to reach this audience through a medium tailored to the students' lifestyles and interests.

Peter Kauff, chairman and CEO of LVNI, said, "Our relationship with IBM affords the technology for us to pursue an aggressive expansion of the College Television Network with enhanced services, increasing our ability to provide the collegiate market with a broader range of interactive programming and information. IBM's involvement makes the College Television Network a more valuable asset to the students, administrators and advertisers we serve."

Upon installation of the IBM system upgrades, estimated to begin with the 1996 fall semester, Laser Video will be transmitting site-specific nightly feeds to the colleges, providing custom-tailored programs and ad insertion through an encrypted datastream.

"We are excited about our work with LVN and the prospects we see for the company. The college market represents an important segment for IBM products and LVN has developed a comprehensive network that is effective in reaching that market," said Michael Reene, vice president, telecommunications and media industry solution unit, IBM. "This investment in our technology will allow LVN to extend its reach in the college marketplace and provide leading-edge services to the community it serves. This agreement is another example of IBM's network-centric computing strategy -- IBM's blueprint for enabling people to receive, use and share applications and services across worldwide voice and data networks."

"We are pleased that this venture provides us with the ability to benefit from IBM's entrepreneurial and creative approach in providing comprehensive solutions to a broad range of issues involved in our expansion plans," said Thom Kidrin, LVNI's president.

The College Television Network is owned by Laser Video Network Inc., an interactive multimedia company that also develops and markets entertainment, advertising, product sampling and point-of-sale systems. The company has offices in New York City and Boston.

The IBM telecommunications and media industry solution unit offers a wide range of solutions for the telecommunications, cable TV, wireless, broadcasting, publishing, advertising and entertainment industries.

CONTACT: IBM Corporation

Colleen Brathwaite, 914/642-5455

-or-

Laser Video Network, Inc.

Thom Kidrin, 617/742-7110

Peter Kauff, 212/888-0617

-or-

KCSA

Leslie A. Schupak/Joseph A. Mansi

212/682-6300 ext. 207/205