Stellar One Inks $2.5 Million Dollar Software and Development Deal With Fujitsu Siemens Computers; Stellar One Porting ConnectTV to Windows 2000 Operating System

Business Wire, May 4, 2001

Business Editors

SEATTLE--(BUSINESS WIRE)--May 4, 2001

Stellar(R) One Corporation, a leading provider of proven software that provides the functionality for broadband interactive TV, today announced that they have received their first multi-million dollar order from Fujitsu-Siemens Computers for ConnectTV software.

ConnectTV will be bundled with FSC's new ACTIVY media center, a powerful new home entertainment gateway. The company has also been commissioned by FSC to port ConnectTV to the Microsof Windows 2000 operating system. ConnectTV currently runs on Microsoft's Windows NT Embedded operating system.

"Stellar One's middleware is a vital component to the overall broadband ecosystem," said Bjorn Fehrm, executive director PC solutions for FSC. "We now offer unprecedented security for Hollywood content, and the very best back office and content asset management system with partners like LockStream and 24X7. Our media center in combination with ConnectTV offers network operators a proven solution, available and deployable today."

"The world of interactive broadband services is constantly changing, because the market is still in the process of figuring out which features it really wants. Two things are certain. The first is that the market is sure to happen, and happen B-I-G. The second is that successful interactive systems are going to be very complex. Pioneering companies who actually live the learning curve at the outset will have built up a significant barrier to entry against late-comers to the competition," said Gerry Kaufhold, principal analyst for Cahners In-Stat Group, a research company based in Scottsdale, Arizona.

Kaufhold goes on to say, "In my opinion, Stellar One is such a pioneering company. Their metamorphosis in the video-over-DSL market closely parallels the path that Liberate Technologies has successfully followed in the broadband Cable TV business. Stellar one started out with a revolutionary set-top box reference design based on the Embedded Windows NT operating system. The fact that this box worked brought major telephone companies to Stellar One's door. But these key customers need system expertise and software applications even more than hardware, so Stellar One changed course. They've set up a vital relationship with Fujitsu-Siemens Computers (FSC) who make the set top box containing Stellar One's middleware, and further honed their system integration skills."

Kaufhold commented, "They now have key customer relationships in place with major incumbent telephone companies, and are positioned to become a partner that enables Telco's to roll out new revenue-generating interactive video services."

The FSC relationship gives Stellar One an FSC sales presence throughout Europe. Stellar One has also signed an agreement with FSC to act as FSC's Value Added Reseller (VAR) in regions outside of Europe. The company will sell ACTIVY in the US, Asia, and Latin America under the name of ConnectTV 3000.

"We couldn't be more excited with how well the FSC relationship has developed," said Kirby McDonald, chairman and chief executive officer for Stellar One. For the past two years we have worked diligently with FSC to combine our software expertise with their manufacturing prowess to create the most robust, yet affordable client/software solution on the market. This is a real accomplishment for the entire Stellar One team."

About ACTIVY

ACTIVY is a premier home entertainment center for people who want more versatility. The ACTIVY 300 Media Center is a home gateway designed to receive virtually all kinds of digital information: Video on Demand, Pay-per-View, Data/IP distribution and streaming or Videoconferencing to name but a few. ACTIVY combines a superb line-up of functions including:

-- Set-Top Box, the receiver and decoder for digital TV and digital radio

-- Web box for Internet, online banking, MP3 and e-mail

-- Satellite receiver

-- Digital video recorder equipped with hard disk

-- DVD and CD player

-- Game console

About ConnectTV

The ConnectTV 3000 system provides a standards-based platform with cutting edge Web-browser capability using Internet Explorer and Windows NT Embedded systems from Microsoft. ConnectTV also supports digital cable and satellite broadcast programming. Software options support include DVD drives and smart card readers for conditional access making any set-top box running ConnectTV software the most robust solution available on the market today.

Other set-top solutions target a thin client with limited functionality. Stellar One and FSC have developed a single solution that can do it all. The FSC hardware and Stellar One software solution gives full access to the Internet and supports various hardware features that will future-proof the box for service providers seeking to make their first buying decision, a right decision. The platform's open architecture and software updates makes it possible for system integrators and network operators to migrate and update as needed to keep pace with changing computing and Internet technology.