Cinema Entertainment Group to Utilize Commerce.TV’s Interactive Television and Transaction Processing System and Jointly Market the Package to MSOs and Pay TV Systems

LOS ANGELES, CA – July 31, 2001 Cinema Entertainment Group (CEG), a company that has developed a new interactive digital cable channel with innovative, home-shopping capabilities, is announcing a strategic alliance with Commerce.TV, a leading technology provider of iTV applications and high speed transaction processing. Under the terms of the agreement, CEG and Commerce.TV will jointly market and distribute CEG’s new channel and Commerce.TV’s CoreTVnet transaction processing service to MSOs and other Pay TV systems. The announcement was made today by Jim Meyers, CEO of Cinema Entertainment Group and Matt Kay, Sr. Vice President and CEO of Commerce. TV.

“CEG’s interactive cable channel is especially suited for delivery via digital platforms and carries with it extensive T-commerce capabilities,” said Meyers. “By working with Commerce.TV, CEG can offer MSOs and Pay TV systems turnkey interactive programming for their subscribers with tremendous additional revenue-earning potential.”

“Commerce.TV and CEG are a natural fit,” said Matt Kay, President & CEO of Commerce.TV. “With our transaction processing capabilities and CEG’s unique content, the value proposition for network operators and the cable subscriber is extraordinary. We are excited to fully enable the transaction potential of a network dedicated to the interactive experience.”

Founded by Jim Meyers (DirecTV US, DirecTV International), Scott Anderson (Encore) and Sunder Aaron (Encore International, Liberty Media), CEG’s interactive television channel will feature movie-based content in a distinctive format that will be selected, scheduled and delivered for the enjoyment of a broad demographic of viewers and to the benefit of theatrical and home video suppliers and pay TV operators.

Recently, it was announced that Adelphia Communications Corp., the nation’s sixth largest cable operator with over 5.5 million subscribers, would deploy Commerce.TV services to digital cable subscribers in specified markets as part of its standard digital TV package by the end of 2001. In addition, Adelphia made an equity investment in Commerce.TV. Previously, Commerce.TV also announced similar deals with Insight Communications, which has 1.4 million cable subscribers, as well as with Susquehanna Communications and Blue Ridge Communications, which have 190,000 and 170,000 subscribers, respectively.

CEG’s channel, utilizing Commerce.TV’s technology, would present no additional cost to digital subscribers, who need only a digital cable box and remote to access the interactive services. Commerce.TV’s CoreTVnet is compatible with Scientific Atlanta Explorer 2000 digital set-top boxes, as well as Motorola DCT-2000 digital set-top boxes.

About Commerce.TV

Founded in April 1999, Commerce.TV is a leading infrastructure provider for interactive television. The company provides end-to-end enhanced television solutions for cable operators and programmers including digital set-top applications that provide advertising, entertainment and shopping services, powered by the CoreTVnetTM advanced database network for content delivery and response processing. Commerce.TV works with top-tier cable companies and programmers, with multiple deployments scheduled during 2001. Commerce.TV is a privately held company, whose primary investors include Adelphia Communications, Insight Communications, Motorola and OpenTV and Citigroup. For further information, please log on to www.commerce-tv.com.

About Cinema Entertainment Group

Cinema Entertainment Group (CEG) is an entertainment company that is launching a new interactive digital cable network especially designed for delivery via upgraded Pay TV platforms. CEG’s strategic partners include Commerce.TV, New Line Cinema, Microsoft Corporation and Liberate Technologies. The company’s new channel was created to celebrate film, while capitalizing on new and advanced technologies to deliver interactive shopping services to subscribers. CEG is working to launch one of the industry’s first services to change the traditional model for subscription and cable television networks. The Company was formed by partners who have more than four decades combined experience in launching television networks, interactive services and platforms worldwide.

CONTACT:

Patricia Frith

Patricia Frith Marketing for CEG

Tel: (310) 440-4803

Email: patricia@pfmarketing.com

Jessie Yoo

Patricia Frith Marketing for CEG

Tel: (323) 463-8409

Email: jessie@pfmarketing.com