Strategic Alliance Creates Turnkey Solution for Network Operators on Next-Generation Digital Platforms

(Culver City, CA / Maynard, MA) - May 8, 2000 - Intertainer Inc. and SeaChange International, Inc. (Nasdaq: SEAC) announced today that the two companies will develop a complete, collaborative end-to-end solution for network operators that want to deliver video-on-demand to consumers. By integrating Intertainer's broadband network with SeaChange's ITV System, the companies will enable the Entertainment On Demand service to run on Motorola's DCT-5000+ set-top box. This integration is facilitated by Microsoft TV Advanced, client software for advanced set-top boxes. Digital Video Arts (DVA), a subsidiary of SeaChange, is responsible for developing the integrated platform.

To experience demonstrations of this advanced set-top box service, visit Intertainer at booth #1319, SeaChange at booth #4671, Motorola at booth #2119 or Microsoft at booth # 3501, at the National Cable Television Association annual conference in New Orleans this week.

The integration of Intertainer with SeaChange's scaleable, software-based platform into the DCT 5000+ will enable operators to enhance a pure movie-on-demand service into a full-featured interactive television service, including a large catalog of movies, music videos and other VOD programming, as well as robust e-commerce offerings. Intertainer and SeaChange are among the few duos that can deliver today a turnkey content and technology solution that can accommodate next-generations set-tops.

"Now that next-generation digital platforms are developed and ready to deliver interactive services to consumers, Intertainer is pleased to partner with SeaChange to revolutionize the television experience in homes," said Jonathan Taplin, Intertainer's president and chief executive officer.

"We're focused on delivering comprehensive digital services to consumers and leveraging the flexibility of our ITV System with our strategic partners," said Yvette Gordon, vice president of interactive technologies, SeaChange International. "We recognize that Intertainer is a premier content and service provider, and are pleased to build a strong relationship with the company to extend a wide range of offerings to television operators."

"Having a strategic relationship with both Intertainer and SeaChange, Microsoft is pleased to see the companies join forces to accelerate cable deployments of the entertainment on demand service," said Alan Yates, director of marketing, TV Platforms Group at Microsoft Corp. "The combination of Intertainer's broadband network service with SeaChange's ITV System running on the Microsoft TV Platform software results in a consumer offering that network operators will love to have as a core part of their Enhanced TV services."

Earlier this year, Microsoft and Intertainer announced a strategic alliance to deliver a collection of A-list Entertainment On Demand to consumers via Intertainer's broadband service and the Microsoft TV Platform. Microsoft also announced a minority equity investment in Intertainer to help accelerate widespread deployment of Intertainer's broadband service. SeaChange is the world's leader in MPEG-2 video systems using the Microsoft Windows NT operating system.

In addition to bringing Intertainer to the DCT-5000+, SeaChange will work with Intertainer to integrate the interactive television service into Motorola's entire range of set-top terminals, comprising over seven million units shipped in North America alone. This aspect of the deal signifies a commitment on the parts of both Intertainer and SeaChange to deliver interactive television to today's existing digital households across a variety of distribution platforms.

Last year at NCTA, the companies jointly announced their plans to integrate Intertainer into SeaChange's comprehensive ITV System platform to enable service on Scientific-Atlanta's Explorer 2000 digital set-top box. This is being demonstrated in the Intertainer booth.

Intertainer's broadband entertainment on demand service enables customers to instantly watch a wide variety of entertainment with the click of a mouse or remote. Intertainer subscribers get music, television programs, current movies and film favorites within seconds to their PC or TV. Customers can view their choices in full-screen, high-quality resolution with complete VCR-functionality, allowing them to stop, rewind and fast-forward selections.

Intertainer ( delivers the largest selection of movies, music videos, television and shopping on-demand to your PC or TV. The service features content from unprecedented partner relationships including Columbia TriStar Television, Disney Channel, Dreamworks SKG, ESPN, Sony Music, Twentieth Century Fox, and Warner Bros., among many others. Enhanced TV functionality, interactive advertising, e-commerce opportunities and personalization features round out the Intertainer experience. Strategic associates include Comcast, Intel, Microsoft, NBC, Sony and US West.

SeaChange is supporting numerous VOD installations around the world. Time Warner is currently using the SeaChange ITV System in a test in Austin, Texas and Comcast has also selected it for its VOD trials in the U.S. Rogers Cablesystems is deploying it in Canada. Telewest Communications is deploying it in the U.K. In China, Guandong Cable TV is using it to provide educational VOD services. Additionally, a number of other cable operators have begun deployments or final preparations toward true VOD services, which are expected to be announced later.

Serving the world's leading broadcast and cable companies, SeaChange International, Inc. ( is the leading provider of MPEG-2 digital video systems. At the forefront of the interactive television revolution, SeaChange with its subsidiary Digital Video Arts, maintains unparalleled experience in developing software for digital set-top boxes. SeaChange's products, incorporating the Company's patented software and hardware technologies, automate the management and distribution of video streams including advertisements, movies, news updates and other broadcast-quality video programming requiring precise execution. Founded in 1993, SeaChange is headquartered in Maynard, Massachusetts.