Universal Studios' Agreement with iN DEMAND Expands Reach of Vivendi Universal Content

Business Wire, July 30, 2001

Business Editors

PARIS & NEW YORK--(BUSINESS WIRE)--July 30, 2001

Enhances Revenue Opportunities in the U.S. While

Setting Course for Long-Term Growth of Video-On-Demand

Vivendi Universal (Paris Bourse:EXFP; NYSE:V) said today that Universal Studios' addition of video-on-demand rights to its existing pay-per-view arrangement with iN DEMAND, as announced July 20, enhances the company's ability to generate new revenues by expanding the availability of its rich film content to iN DEMAND's affiliates, including the potential 44 million homes which subscribe to the network's four largest cable company owner-affiliates (AT&T, Time Warner, Comcast and Cox).

This agreement joins together the country's largest pay-per-view network with a major Hollywood studio. The non-exclusive agreement grants iN DEMAND the VOD rights for Universal Pictures' current releases, library films and certain other product.

"This is an extension of Vivendi Universal's strategy to strengthen our distribution in the U.S.," said Jean-Marie Messier, chairman and chief executive officer of Vivendi Universal. "As the first major studio to grant VOD rights to iN DEMAND, Vivendi Universal is demonstrating its commitment to accelerating the development of on-demand entertainment by providing iN DEMAND's customers with a new alternative for viewing movies in their homes, at their convenience."

He added: "Universal Studios' extension of its relationship with iN DEMAND follows distribution agreements for Vivendi Universal's music content with such entities as Yahoo!, MSN and MP3.com. Overall, we are working on a number of fronts to augment the distribution of all of our content through alliances, agreements and partnerships. Beyond this non-exclusive agreement with iN DEMAND, Vivendi Universal is working with other studios on distributing our content in an on-demand environment, particularly VOD."

IMPORTANT DISCLAIMER:

This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside our control, including but not limited to: the risk that recently acquired operations will not be integrated successfully; that the synergies expected to be created as a result of recent acquisitions will not materialize; that Vivendi Universal will be unable to further identify, develop and achieve success for new products, services and technologies; that Vivendi Universal will face increased competition and that the effect on pricing, spending, third-party relationships and revenues of such competition will limit or reduce Vivendi Universal's revenue and/or income; that Vivendi Universal will be unable to establish and maintain relationships with commerce, advertising, marketing, technology, and content providers; and that Vivendi Universal will be unable to obtain or retain, upon acceptable terms, the licenses and permits necessary to operate and expand its businesses; as well as the risks described in the documents Vivendi Universal has filed with the U.S. Securities and Exchange Commission. Investors and security holders are urged to read those documents at the Commission's web site at www.sec.gov. Those documents may also be obtained free of charge from Vivendi Universal.