Stream Theory and RedOctane Partner to Offer PC Game Samples to Console Video Game Renters

Business Wire, Oct 31, 2000

Business Editors/High-Tech Writers

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MOFFETT FIELD, Calif.--(BUSINESS WIRE)--Oct. 31, 2000

Stream Theory Technology Enables Broadband Users to Sample PC

Games Online With No Downloads or Installation

Stream Theory, Inc., an innovative start-up with proprietary technology to quickly deliver software applications over broadband and other media, and Internet game rental market leader, RedOctane.com, today announced the official launch of streaming PC game demos on RedOctane.com (http://www.redoctane.com/stream-theory.html).

Since the majority of their customers use a PC to select Sony PlayStation(TM), Sony PlayStation 2(TM) and Sega Dreamcast(TM) games to rent, RedOctane will use corresponding free PC game demos to enhance the selection process. Stream Theory's patent-pending streaming technology allows users to point, click and run the corresponding demo software over the Internet almost instantly and without installation.

"At RedOctane we believe in the online game rental business," said Charles Huang, vice president of Business Development for RedOctane, the first-mover in the online video game rental market. "Stream Theory is methodically moving the PC business in that direction. We are happy to be a launch partner with Stream Theory and offer free streaming PC demos to our online rental customers. We view it as a unique way to offer an online preview of titles that cross over to console platforms."

RedOctane will offer streaming demos of many games, including "Tony Hawk's Pro Skater 2" by Activision, "Kiss: Psycho Circus" by Gathering of Developers, "Tomb Raider IV: The Last Revelation" by Eidos Interactive and "Unreal Tournament" by Infogrames. Stream It buttons easily identify the streaming demos throughout RedOctane.com. Broadband visitors simply click the Stream It button and, after a brief `jumpstarting' period, play the demo. When finished, users can become customers by adding the corresponding PlayStation, PlayStation 2 or Dreamcast version to their rental-shopping cart.

"We are excited to lead the introduction of online streaming PC software and be part of the evolving online software rental market," said Steig Westerberg, president and chief executive officer of Stream Theory. "According to the Interactive Digital Software Association, video game rental revenue was $880 million last year. We think RedOctane is a very innovative company that is pioneering online console game rentals. Their use of streaming PC demos as a sampling mechanism is another unique step that adds customer value."

To sample the PC game demos, users are required to have broadband Internet access, such as cable modem, DSL or T1. The first time users choose to stream will result in a brief process whereby the 1.8MB Stream Theory Player is installed on their PC. Because the software is streamed to the users desktop, there is no installation, no downloading, and no uninstalling of files. Users can simply play the demo on RedOctane.com to determine whether or not they want to rent the console version of the same game.

RedOctane offers the largest selection of PlayStation and Dreamcast video games for rental. Customers chose from various rental options, priced from $3.95 for a single game for a 10-day rental, to $99.00 for a prepaid 20-game rental package that offers no due dates, no late fees and no shipping charges. RedOctane delivers the ordered games within two to four days and includes a pre-paid, pre-addressed envelope for returns.

About Stream Theory:

Founded in 1996, Stream Theory, Inc. has pioneered the era of instant streaming delivery and management of software on the Internet, CD-ROMs and DVD-ROMs. The patent-pending streaming software service was developed for software publishers, developers, e-tailers, portals and application service providers. Any business application written in Windows 9X, Java, DOS and more, as well as entertainment software such as PC videogames and demos, can be streamed securely to PCs without any modification or "porting" of the software. Streamed applications execute locally in real-time and are never installed on the user's hard drive. Stream Theory technology provides a wide variety of streaming services, including streamed demos and trial versions, timed use of full applications, software rentals on a timed, per-use or flat-rate basis, online sales using streamed installation and integrated ad delivery surrounding software usage. Stream Theory simplifies software usage to increase "stickiness" of web sites, eliminate download hurdles and increase sampling, maximize online sales to reduce distribution costs, eliminate installation problems to reduce tech support costs and integrate targeted messages to increase ad revenue. Stream Theory delivers off-the-shelf and custom applications for ASPs (application service providers). Stream Theory eliminates the need for patches and updates to be installed locally. Stream Theory is a privately held company headquartered in Moffett Field. For more information, please visit Stream Theory at www.streamtheory.com.