IBM, OpenTV Combine Technologies to Enhance Television Set-top Boxes

Companies join forces for powerful next generation set-top boxes

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EAST FISHKILL, N.Y. & MOUNTAIN VIEW, Calif. - 21 Aug 2001: -IBM and OpenTV the world's leading interactive television and media solutions company, today announced they have ported and certified OpenTV's interactive television (iTV) software to run on IBM's PowerPC-based set-top-box chips, providing a powerful base for next-generation STB applications.

The two companies are combining the high-performance of IBM's PowerPC microprocessor with OpenTV's leading iTV software, to help service providers build set-top-boxes that deliver new interactive television applications to the home.

``IBM's PowerPC-based set-top-box controllers provide the fastest single-chip speeds in the set-top-box industry,'' said Eric Tsou, director, Digital Video Products Group, IBM Microelectronics. ``By combining that kind of hardware with OpenTV's software, we're giving customers additional performance and programmability for emerging applications. Our range of PowerPC-based standard and custom chips are the engine behind a new class of information services.''

The wide reach and number of deployments for the IBM PowerPC-based STB controller and OpenTV's iTV provides an attractive opportunity for application developers.

``OpenTV's iTV middleware solution, now deployed in more than 18.2 million set-top boxes worldwide, offers service providers a reliable and proven solution that is capable of producing rich and interactive content for their customers,'' said James Ackerman, CEO of OpenTV. ``We believe our work with IBM will provide substantial service deployment opportunities on both today's set-top-boxes and tomorrow's next generation systems.''

IBM's STB03xxx set-top-box chip family combines a PowerPC processor, an MPEG-2 audio/video decoder, a memory interface subsystem and a range of peripheral interfaces all on a single piece of silicon. The chip features high-speed operation at 162 MHz, with a 16-KB instruction cache and an 8-KB data cache, providing the performance necessary for a range of new services.

OpenTV provides the interactive TV solution, including software, services, and applications. Its client middleware, now in its third generation, seamlessly integrates multiple applications from multiple vendors in the limited set-top resources without costly upgrades.

Set-top-box developers can purchase the IBM and OpenTV products individually from the respective companies immediately.

About IBM

IBM Microelectronics is a key contributor to IBM's role as the world's premier information technology supplier. IBM Microelectronics develops, manufactures and markets state-of-the-art semiconductor and interconnect technologies, products and services. IBM makes chips for a wide range of devices from the world's most powerful computers to the smallest cell phones. Its superior integrated solutions can be found in many of the world's best-known electronic brands. More information about IBM Microelectronics can be found at:

About OpenTV

OpenTV is the world's leading interactive television and media solutions company. OpenTV builds a complete software and infrastructure platform that enables digital interactive television and brings on-demand content to other digital communications devices. OpenTV solutions are crafted to meet the needs of all digital communications networks and include operating middleware, content applications, content creation tools, professional services expertise, and strategic consulting.

OpenTV software has been shipped with or installed in more than 18.2 million digital set-top boxes worldwide and has been selected by 45 digital cable, satellite and terrestrial communications networks in over 50 countries, including BSkyB in the United Kingdom (NYSE: BSY - news); TPS and Noos in France (Paris:LYOE.PA); PrimaCom in Germany (Nasdaq: PCAG - news); Via Digital in Spain (NYSE: TEF - news); Stream in Italy (NYSE: NWS - news); DIRECTV(tm) Latin America LLC (NYSE: GMH - news); and EchoStar's DISH Network (Nasdaq: DISH - news) and USA Media in the U.S. In addition, 34 digital set-top box manufacturers have licensed OpenTV's software, and more than 1,100 developers have joined the Company's OpenAdvantage developer program.

Worldwide headquarters for OpenTV is located in Mountain View, Calif. Information on OpenTV is available at

This news release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those contemplated herein, including statements regarding the continued proliferation of OpenTV's core platform and OpenTV's current and future position in the marketplace. Actual results can differ materially. Risks and uncertainties that could cause actual results to differ include, but are not limited to, whether current demand for interactive products and services will continue, the rate at which the market for interactive products and services will continue to expand, the timely identification, development and deployment of interactive products and services, customer acceptance of those products and services and the pricing thereof, the levels of deployment of this new chipset, the impact of competitive products and services and the pricing of those products and services, the impact of technological constraints and changes in technology, the impact of governmental regulation, and other risk factors detailed in the documents filed from time to time by OpenTV Corp. with the Securities and Exchange Commission, including those risk factors detailed in Item 3.D of OpenTV Corp.'s Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 18, 2001. OpenTV undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events, or otherwise.