OpenTV and M@gicBox to Launch Pioneering iTV Relationship

Business Wire, Nov 18, 2002

Business Editors/High-Tech Writers

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Nov. 18, 2002

Agreement Will Support Deployment of Credit Card Assigned

Set-Top Boxes, Reducing Network Operators' Capital Expense

OpenTV, (Nasdaq:OPTV) and (Euronext Amsterdam:OPTV) the world's leading interactive television company, today announced a long-term relationship with M@gicBox to power the deployment of the first interactive television service on credit card-assigned advanced set-top boxes.

This innovative approach to making interactive TV services more accessible would relieve network operators of the capital cost of funding the set-top boxes. M@gicBox has plans to finance the cost of the set-top box deployment across the Asia-Pacific region in return for the rights to deliver interactive TV applications licensed by OpenTV on the network. Each set-top box deployed will be assigned a MasterCard credit card through which all transactions relating to the consumer and their pay TV account must pass. M@gicBox and its financial partners will receive a fee for every transaction.

OpenTV will provide M@gicBox with a broad range of services and products including its world leading middleware, OpenTV Core 1.1, OpenTV Enterprise Solutions, featuring OpenTV Account and OpenTV Advertise products, as well as its professional services capabilities, including launch management and applications integration. OpenTV Account is a customer relationship management (CRM) solution that supports transactional iTV services including t-commerce, direct response TV and self-provisioning. OpenTV Advertise manages, schedules and broadcasts banner advertisements across all interactive television applications, while producing a broad range of real-time reports.

"The main reasons why digitalization and interactive TV has been so unattractive to broadcasters is the huge capital cost of deploying set-top boxes in volume and the slow rate of return -- our solution is a profitable cost effective development for network operators everywhere," said Anthony Desir, M@gicBox chairman. " OpenTV has been a unique technical partner. They are the recognized global leader in developing and offering strategic iTV solutions and they have helped us to seamlessly integrate our financial innovation into everyday applications. Together we have been able to identify ways to turn almost any existing iTV application into an immediate revenue generator. Our network partners should expect to benefit from extra revenue earned on our impulse payment system. Asia is the world's biggest TV market; there is no question that a successful ITV model here will be of interest to operators all over the world."

"We believe the Asia-Pacific market is ripe for advanced digital TV technologies and creative approaches as provided by M@gicBox in bringing more opportunities for network operators to deploy iTV services to their subscribers," said Jeff Brown, OpenTV's managing director, Asia-Pacific Region. "We believe that OpenTV brings the global experience and flexibility in offering our partners bundled iTV services with unmatched economies of scale."

The first deployment using this transaction model will be in the Philippines on the PMSI network, a leading satellite operator, with Nokia 8830S set-top boxes. The initial launch includes games, and a wide range of broadcast interactive information such as local information and astrology, and is expected to be followed a short time later by more advanced interactive services including transactional-based services such as impulse pay-per-view (iPPV) and betting. M@gicBox has already signed broadcast deals in other key Asian markets and will begin deployment in those markets following the Philippines.

OpenTV's interactive television technologies, content, applications and services have been selected by many of the Asia Pacific region's leading companies, including: Austar in Australia, Jupiter Telecommunications Co., Ltd, in Japan, Beida Jadebird Huaguang, Henan Cable and Shanghai Cable in China, Sky Television in New Zealand, and consumer electronics manufacturers Sony Corporation and Matsushita.

OpenTV works with more than 18 manufacturers throughout Asia in Taiwan, Japan, China and Korea and is a member of Japan Cable Laboratories, which supports development of digital cable TV technology standards in Japan. OpenTV completed the technical specifications of the BML standard for BS/CS-type satellite broadcasting and is the only interactive TV company to provide a product that meets BML standards.

About OpenTV

One of the world's leading interactive television companies, OpenTV has a global footprint of more than 35 million households. The company provides a comprehensive suite of iTV solutions including operating middleware, interactive content and applications such as t-commerce, interactive advertising and games, content creation tools, professional support services, and strategic consulting. A pioneer in interactive television research and development, OpenTV has been issued 47 U.S. patents, 120 foreign patents, and has more than 385 pending patent applications worldwide to support its products and services. The company is headquartered in Mountain View, Calif., with regional offices located throughout the United States, Europe and Asia/Pacific. For more information please visit www.opentv.com.