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Interact-TV Inc.

2503 Walnut Avenue, Suite 100

Boulder, CO USA 80301

Tel: (720) 406-9399

Fax: (720) 406-8424

www.Interact-TV.com



For Immediate Release

January, 2003



Interact-TV™ showing Telly™, the Home Entertainment Server in action at

Pat Meier Associates Lunch@Piero’s private press event during this year’s

Consumer Electronic Show.



LAS VEGAS, Nevada - Jan 9 -10 2003 - Interact-TV, a digital home

entertainment software developer, will demonstrate Telly, the Home

Entertainment Server at this year’s Lunch@Piero’s private press lunch January

9-10. Telly, which runs on Interact-TV’s core Entertainment Operating System

(EOS™), uses the VIA EPIA Mini-ITX motherboard from VIA Technologies, Inc.

Telly is based on interact-TV’s highly flexible and expandable Linux-based

entertainment operating system (EOS™), which Interact-TV licenses to PC and

hardware OEMs



Telly combines the power of broadband Internet, cable television, and home

networking to create a revolutionary Home Entertainment Server that enhances

the digital media experience from the comfort of a living room environment.

Telly, the Home Entertainment Server, makes managing digital media easy. It is

a dedicated digital hub for the digital media enthusiast in a package the size of a

stereo component. Moreover, Telly is fully extensible and "future proof”…

meaning you can't outgrow Telly. Software updates are simple and you can add

more memory or a larger hard drive for more storage.



Telly is for anyone interested in movies, TV, music, photography or home videos.

Telly features a suite of applications that can store, index, and playback

thousands of CDs and MP3s, digital photos and as much as 60 hours of

personal digital videos. For television viewers Telly provides a powerful,

subscription-free interactive Personal Program Guide. Telly also provides

centralized storage for easy access of all types of digital media including music,

MP3, DIVX, and digital photos. Select any of Telly's features from an interface

designed exclusively for the television. Storing digital media on Telly gives you

the freedom to share your media with other devices in the home, or over the

Internet through a browser. Now all your music is only a click away, from any

device connected to the home network. Telly can also check weather, stocks,

and local theatre listings based on any zip code. All of these features are

accessed through an easy to use television-based interface controlled by an on

screen cursor remote, but can also share media through an internal website and

a local area network. All this allows Telly to support the information and media

you demand today with the capability to support up-coming features like

Entertainment On Demand tomorrow.



About Interact-TV, Inc.



Interact-TV, is a leading innovator and developer of digital home entertainment

solutions, which licenses the company’s Linux-based Entertainment Operating

System (EOS) to PC and CE OEMs.



EOS is a software platform designed from the ground up to enable development

of compelling, entertainment-centric digital media management products. EOS

lays the groundwork for supporting the complex and cutting edge applications

required to compete effectively in the home entertainment

market. These applications include but are not limited to: storing, indexing, and

playing back thousands of CDs and MP3s, digital photos, and personal digital

videos or sharing them over home networks; developing an powerful,

subscription-free interactive program guide that supports PVR functionality

including reminders and personal favorites; accessing information from the

Internet like current weather, stocks, and local theatre listings: controlling EOS

applications using a trackball cursor remote, wireless keyboard, or web browsers

connected to the home network



EOS software architecture includes a series of software APIs (Application

Programming Interfaces) facilitating development of new applications and the

addition of peripherals to keep pace in the fast-moving home entertainment

market. This open development platform also allows OEMs to develop additional

applications, thereby creating differentiated value for the OEMs solution.



Interact-TV, Inc., a Delaware C Corporation founded in 2000, develops

innovative software products that support and enhance digital entertainment

media. Then, integrating its software with state-of-the- art hardware components,

Interact-TV creates a complete solution for true entertainment on demand.

Interact-TV develops technology based on industry standards and believes in an

open development environment. The result is a family of outstanding products

that easily fit into existing entertainment environments. Headquarters for Interact-

TV are in Boulder, Colorado.



Interact-TV and Telly are trademarks of Interact-TV, Inc. All other trademarks,

registered or otherwise, are the properties of their respective owners. Additional

information about Telly and 3rd party development can be found at www.interact-

tv.com.



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