Consumer Electronics Manufacturer Thomson Leads The Round And Microsoft Increases Stake

CULVER CITY, Calif., January 22, 2002 - Intertainer, the leading entertainment on demand broadband service, today announced the first closing of a Series E round of funding. The company has received $15 million in total additional funds from Thomson Consumer Electronics and Microsoft Corp. Thomson, a new equity partner for Intertainer, leads this round, while Microsoft increases its existing investment in the company.

"Bringing Thomson in as a new equity partner to join Microsoft, Sony, Intel NBC and our other investor partners demonstrates that Intertainer is at the center of the converging worlds of technology and entertainment," said Intertainer CEO Jonathan Taplin. "Increasing our working capital at this critical time will allow us to work towards long-term profitability while ensuring stability and development in the near term."

Recently, Intertainer expanded its service into the top 35 broadband markets in the country, making it the first widely deployed video on demand service featuring premium Hollywood content. In addition, Intertainer has also expanded its digital cable deployments with leading operators Comcast and Adelphia Communications.

The Intertainer library features more than 70,000 hours of content, including films from major Hollywood studios and a variety of television and music programming from more than 70 premium content providers. Intertainer users have instant access to more than 700 hours of programming at any given time, with full VCR functionality, allowing them to stop, fast-forward and rewind their selections. Intertainer content partners include Universal Pictures, Warner Bros., Dreamworks SKG, Artisan Entertainment, NBC, A&E Television Networks, Discovery Channel, EMI Music, ESPN, PBS, Warner Music Group and numerous others.

About Intertainer

Using its flexible, interoperable Digital Entertainment Service Platform™, Intertainer ( delivers the largest selection of movies, music videos and television programming on-demand instantly to your PC or TV. The service is delivered over digital cable and Internet Protocol systems and features content from unprecedented partner relationships including Universal Pictures, Warner Bros., DreamWorks SKG, A&E Networks, NBC, Discovery, ESPN, Pearson Television, Warner Music, EMI Music and many others. Enhanced TV functionality, interactive advertising and personalization features round out the Digital Entertainment Service Platform offering and the Intertainer experience. Strategic partners include Thomson, Comcast, Intel, Microsoft, NBC, Qwest and Sony.

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Contact: Louise Rasho, 310-895-2112,