WorldGate Communications Brings the Internet to Cable Subscribers' TVs Worldwide; Agreements Reached for Intentions to Deploy in Thirteen Countries On Five Continents

Business Wire, May 25, 1999

BENSALEM, Pa.--(BUSINESS WIRE)--May 25, 1999--

WorldGate Communications (Nasdaq:WGAT), the nation's only commercially deployed Internet TV service using the cable television infrastructure announced today plans to introduce its WorldGate(sm) Service in cable systems representing more than two million subscribers and over five million homes passed outside the U.S, complementing their existing commercial launch plans in 21 locations throughout the US.

Nineteen cable companies have signed either trial or deployment agreements with WorldGate include: North America: Cablevision S.A. de C.V. Mexico and Cable Bahamas; Europe: Toya in Poland, Retecal in Spain and TeleCable in Spain; South America: SuperCable in Venezuela, Telefonica Multimedia in Peru, TVCable in Ecuador, Cablevision/TCI in Argentina and Image TV in Brazil; Asia/Pacific: SkyCable in the Philippines, Korea: INC, DCS, NIC, YSC, BCN, DNC TV, and Singapore CableVision in Singapore; Australia: Saturn Cable in New Zealand.

Today's announcement comes on the heels of a press release distributed earlier this week that WorldGate has received notification from the U.S. Patent and Trademark Office that all 62 claims of the Company's patent application for its Channel HyperLinking(sm) technology have been approved. WorldGate's pioneering Channel HyperLinking technology enables TV viewers to use the Internet to access information related to television programs or advertisements while they are watching TV.

WorldGate will be the first company to bring high speed, low cost Internet service and e-mail to cable subscribers outside the United States, without the need for a PC or phone line. For many parts of the world, the PC represents too large a financial and technical barrier for them to enjoy universal Internet access. Likewise, the phone service normally required for PC based Internet access and typically enjoyed in the United States is not readily available overseas or is cost prohibitive. WorldGate's unique ability to eliminate both requirements through the marriage of its technology with the television set and either the existing analog or digital cable platform enables operators worldwide to broadly and cost effectively deploy the Internet to all their subscriber base.

The WorldGate Service also facilitates the language, cultural and content adaptations required for an international marketplace. People want to be connected, but they want to communicate in their own language and gain access to local information. WorldGate's "Ultra Thin-Client"(sm) easily accommodates such changes, including Internet parental control, on platforms from both General Instrument and Scientific-Atlanta.

"In this country, we think of the Internet as a global community, but in fact, outside the United States Internet use is being thwarted by the low penetration rates of personal computers," said Hal Krisbergh, chairman and CEO, WorldGate Communications. "WorldGate's revolutionary technology allows our cable operator partners to provide a cost effective alternative to PC's for accessing the Internet, while at the same time providing an additional revenue

opportunity, complementing their current video programming services."

"WorldGate's ability to bring this vast array of Internet content to our subscribers, at such a low cost, without sacrificing speed or needing expensive equipment is amazing. We expect this to be a tremendously popular service locally," said Ahmad Lee Khamsi, president of SuperCable in Venezuela.

"We see the WorldGate Service as a strong driver in our international markets," said Ed Breen, chairman and CEO, General Instrument. "WorldGate is a key application in many of these cost sensitive markets. Many of our international markets will initially deploy analog set-top terminals, which WorldGate currently supports in a variety of languages and TV formats. This entry, coupled with a migration path for digital deployment, provides a winning combination in the international marketplace."

"People around the globe want to be part of the Internet revolution. WorldGate offers the international marketplace an efficient method of providing the Internet to a broad class of consumers worldwide, not currently served by the PC industry. Their unique ability to work on both SA's analog and digital platforms affords the cable industry a complete Internet solution," said Ken Klaer, General Manager, Scientific Atlanta.

About WorldGate Communications Inc.

Headquartered near Philadelphia, WorldGate Communications is the first commercially deployed service that enables cable subscribers to access a full array of low-cost Internet services and e-mail through their television sets and the cable television infrastructure rather than a personal computer and telephone. The WorldGateSM Service marries WorldGate's proprietary technology with the television set platform and either the existing advanced analog or digital cable converter along with a remote control or wireless keyboard to bring the Internet to cable subscribers. Using the advanced analog converters, the Service operates at more than 2 times the speed of a standard 56 Kbps telephone modem. With digital cable converters, the Service operates at 27 Mbps, over 2 and one-half times faster than a typical cable modem.