VDOLive Player Included in Microsoft Internet Explorer 4.0; Millions of Users Will Have Automatic Access to Wide Array of Video Content on the Web

Business Wire, Oct 2, 1997

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Oct. 2, 1997--VDOnet Corp. announced today that its VDOLive player will be included in Microsoft Internet Explorer 4.0, the new version of Microsoft Corp.'s (NASDAQ:MSFT) Web browser.

This means that Internet Explorer 4.0 users will have automatic access to a wide variety of video content that exists on the World Wide Web through the VDOLive player.

"Internet Explorer 4.0 represents an innovative advancement for web browsing, and its wide demand will make VDOLive available to millions of Internet users," said Marty Falaro, VDOnet's president and CEO. "By combining VDOnet core technology with platforms like Microsoft Internet Explorer 4.0, we will deliver to this larger user community high value video-based applications that scale from the Internet, to corporate intranets, to broadband networks."

Falaro added that the two companies continue to work together to enhance the use of video-based applications over networks. This includes work on standards for both streaming video and video conferencing, collaboration on Microsoft's Advanced Streaming Format (ASF), and efforts to build upon their cross-licensing agreements.

VDOnet was recently named the premier provider of video solutions to broadband networks by Microsoft. VDOnet has also been one of the most active integrators of Microsoft NetMeeting into the VDOPhone video conferencing product line, .

VDOnet is working closely with premium service providers such as cable companies, telephone companies and internet service providers to develop a variety of broadband video applications that help them differentiate themselves and add value to their services. The company is also working with corporations to develop video-based business solutions for the Internet and intranets.

VDOnet Corp. is the leading provider of video applications for the Internet, intranets, and broadband networks. The company has developed both fundamental technology and compelling applications for video broadcasting and video telephony over computer networks of any bandwidth. Today, VDOLive is being used by hundreds of companies, and approximately 10 million Internet users currently have accessed the VDOLive player to view video media.

The VDOPhone is available both as a standalone commercial product and bundled with products offered by leading PC and PC peripheral providers. VDOnet's was the first and is today one of the few video technologies for the Net which is "dynamically scalable" -- allowing it to adapt automatically to the available bandwidth. The company is now actively working with a variety of Premium Service Providers to develop next generation video applications for the internet, intranets and broadband networks.

The company was founded in 1995. Its investors are Microsoft Corp., USWest Media Group, NYNEX, Battery Ventures, and private sources. VDOnet's URL is http://www.vdo.net . -0-

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CONTACT: Roeder-Johnson Corp.

Abigail R. Johnson, 415/802-1850

abigail@roederj.com

Mike Brogan, 415/802-1850

mike@roederj.com