Orca Interactive Launches Unique Combined IPTV and WebTV Solution With Blockbuster Israel

Business Wire, August 29, 2007

Orca First to Market with Innovative New Technology Enabling Blockbuster Israel to Deliver Digital Content Services to Subscribers

RA'ANANA, Israel -- Orca Interactive Ltd. (LSE:ORCA), a market pioneer in providing IPTV middleware and applications, today announced that it is first to market with a unique combined IPTV and WebTV solution. Orca is delivering its innovative new WebTV technology to Blockbuster Israel, enabling the leading content provider to deliver advanced digital content services to its subscribers.

Expanding on Orca Interactive's cutting edge RiGHTv middleware platform with all-new capabilities, the combined IPTV and WebTV solution supports both managed and unmanaged environments, eliminating boundaries to help service providers expand their customer base and market reach. IPTV service providers will also be able to broaden offerings to existing subscribers with anytime, anywhere TV services for on-the-go digital content over mobile PCs. In addition, content offerings can be extended beyond IPTV to enable WebTV, diverse multimedia, niche content and user generated content (UGC).

Orca's new WebTV offering, founded on the company's extensive IPTV expertise, includes progressive download and push VOD capabilities over PCs and STBs, in addition to other services such as PVR, home media and high definition television based on VOD push. The combined IPTV and WebTV platform supports the new WebTV capabilities alongside IPTV services such as video-on-demand and live television. The WebTV-powered RiGHTv middleware platform continues to provide connectivity to OSS/BSS systems, enabling service providers to efficiently operate both services.

Using Orca's new combined solution, Blockbuster Israel will launch a new Internet service for progressive download of up-to-date digital content over PCs by the end of the year. In early 2008, Blockbuster Israel plans to provide an IPTV-ready STB to enable TV connectivity from the PC and advanced services such as Push VOD and HDTV, followed by a complete digital TV offering.

"This announcement marks a new era for Blockbuster Israel, driving us to the forefront of next-generation video services and demonstrating our market leadership. Breaking new ground with a cutting-edge Web service, we can now deliver the latest movies and television series directly to subscribers' homes through an advanced digital platform," commented Ofer Lowy, Chairman of Blockbuster Israel. "Orca's unique solution powers high quality interactive TV and digital content services, so that our subscribers can benefit from a triple bundle of local branches and vending machines, Web content and a full IPTV package in the future."

"We are thrilled to launch our revolutionary WebTV offering, while enabling Blockbuster Israel to deliver advanced digital content services," said Haggai Barel, CEO of Orca Interactive. "WebTV can help IPTV players today protect their market share and maintain a competitive edge. As the first to market with this unique combined IPTV and WebTV solution, Orca is yet again pioneering the future of IPTV - this time leading the market towards total convergence of managed and unmanaged services for top-notch home entertainment."

Orca Interactive will present its new combined IPTV and WebTV solution along with a range of next-generation IPTV services, such as content discovery and user generated content over television, at the IBC 2007 exhibition in Amsterdam, Booth #2.230 from September 7-11.

About Blockbuster Israel

Blockbuster Israel, a franchise of Blockbuster Inc., is a leading provider of in-home rental, retail movie and game entertainment. With 30 branches and 250 DVD vending machines across Israel, Blockbuster Israel delivers the best content and the widest selection of movies, television series, games, music and more for top-quality home entertainment. For further information please visit www.bbm.co.il.

About Orca Interactive

Orca Interactive (LSE:ORCA) is a market pioneer and innovation leader in providing IPTV middleware and applications, bringing the power of next generation interactive TV to help service providers and broadband network operators drive growth. Revolutionizing the way people consume television content, Orca Interactive's dynamic IP video and feature-rich multimedia solutions combine live TV, video on demand (VOD), personal video recording (PVR), home media and personalized services, including the latest in content discovery and user generated content, across a multi-device platform, and over the Internet through its unique WebTV solution. Orca Interactive's proven RiGHTv solution is System Integrator (SI)-enabled, providing a flexible approach for tailored IPTV solutions with leading vendors across the value chain. Orca Interactive has diverse experience in delivering cutting-edge interactive services and applications, enabling operators and triple-play providers to deliver the ultimate IPTV experience. Founded in 1996, Orca Interactive is based in Ra'anana, Israel and is part of the Emblaze Group. For more information visit www.orcainteractive.com.