Gemstar-TV Guide International Inc. and Motorola Inc. Announce Long-Term Licensing Agreement and Settlement of Arbitration and Litigation

Business Wire, Oct 16, 2000

Business Editors

PASADENA, Calif. & TULSA, Okla.--(BUSINESS WIRE)--Oct. 16, 2000

Gemstar-TV Guide International Inc. (Nasdaq:GMST) today announced that Motorola Inc. (NYSE:MOT) has entered into a long-term make-and-sell license agreement for Gemstar-TV Guide's IPG (Interactive Program Guide) technology and patents to interface with Gemstar-TV Guide's IPGs.

The parties also agreed to immediately dismiss all currently pending arbitration and litigation. As part of the agreement, the parties will jointly pursue new business opportunities in areas involving interactive services utilizing each of their products, proprietary technologies and patents.

Specific terms of the agreement are confidential but include payments to Gemstar-TV Guide International Inc. relating to the settled litigations as well as license fees going forward.

"We are extremely pleased to add Motorola to our prestigious group of IPG licensees and truly look forward to working with them on the development of new and exciting interactive technologies and services that are now possible as the result of digital convergence and broadband capacity," said Peter C. Boylan III, co-president and chief operating officer of Gemstar-TV Guide International Inc., and chairman and chief executive officer of TV Guide Interactive Inc.

"Motorola and TV Guide are each well recognized and powerful brands with consumers. With the resolution of our prior disputes with Gemstar-TV Guide International Inc., and having become a licensee of their patented technology, we look forward to working together pursuing the development of new interactive services that will benefit our customers and consumers," said Ed Breen, president, Motorola's Broadband Communications Sector.

Gemstar-TV Guide International will host a conference call with Dr. Henry C. Yuen and Peter C. Boylan III, today at 3:30 p.m. CT, to discuss this announcement. The call-in number will be 773/756-4801, passcode Gemstar-TV Guide.

About Gemstar-TV Guide International Inc.

Gemstar-TV Guide International Inc. (Nasdaq:GMST) is a leading global technology and media company focused on consumer entertainment.

The company has four major business sectors: the Technology and Licensing Sector, which is responsible for the development, licensing and protection of intellectual property and technology; the company's technology includes the VCR Plus (R) system, the interactive program guide ("IPG") marketed under the GUIDE Plus (R) and TV Guide Interactive(SM) brands and the electronic book ("eBook"); the Interactive Platform Sector, which owns, operates and derives recurring income from advertising, interactive services, content sales and e-commerce on the company's proprietary IPG and eBook platforms; and the Media and Services Sector, which operates the TV Guide(R) magazines, TV Guide Channel(SM) and other television media properties, as well as a media sales group that services all of the company's media platforms; and the Investments & Holdings Sector, which operates a variety of businesses, including the start-up Television Games Network.

The IPG is built into televisions, VCRs or is downloaded to set-top boxes (cable, satellite, telco, Internet) and presents a multi-day television program guide on the television screen from which the consumer can view, select, tune to or record programs.

The eBook is a reading device which can store tens of thousands of pages and permits a user to take instant delivery of any book, magazine or newspaper they purchase over the telephone. The company's media properties reach more than 100 million U.S. homes on a weekly basis. The company's products and services are available in more than 60 countries worldwide.

The company's services, technology and intellectual property are licensed to major technology, media and communication companies in the consumer electronics, Internet, personal computer, satellite, cable television and telco industries.

Licensees and customers include AOL, AT&T, Cablevision, Charter, Comcast, Cox, DirecTV, Dish Network, Matsushita, Microsoft, Mitsubishi, Motorola, Philips, Sony, Time Warner, Thomson Multimedia, Zenith and others.

The company has more than 140 issued U.S. patents in the general area of audio-visual technologies with more than 3,000 claims, more than 150 issued foreign patents and continues to actively pursue a worldwide intellectual property program and currently has more than 400 U.S. patent and more than 600 foreign patent applications pending with more than 5,000 claims.