Press release: 1994-01-27: INTERACTIVE NETWORK AND SEGA CHANNEL REACH AGREEMENT

This is an unaltered copy of a press release, for use as a primary source on Sega Retro. Please do not edit the contents below. Language: English Original source: The Free Library

SUNNYVALE, Calif., Jan. 27 /PRNewswire/ -- Interactive Network, Inc. (NASDAQ: INNN) and Sega Channel(SM)(TM) today announced an agreement under which they will jointly test the appeal of interactive subscriber competition -- for prizes -- playing Sega Genesis(TM) games at home. The Interactive Network patented technology enables millions of players to report their scores and learn within minutes how well they did in competition. The joint Interactive Network and Sega Channel pilot program is scheduled for the first half of this year, following a test of Sega Channel in 12 U.S. cities.

In its trial, Sega Channel -- a joint venture of Sega of America, Inc.; TeleCommunications, Inc.; and Time Warner Entertainment Company, L.P. -- will measure the potential of delivering a large library of video games over cable to home subscribers. Interactive Network will then test incremental subscriber response to competition for awards and prizes made possible by its two-way system connecting every subscriber to the company's central computer.

The selection of the Interactive Network/Sega Channel markets will be announced soon.

"We look forward to offering Sega Channel subscribers even more excitement from their Sega Genesis," Stanley Thomas, president and CEO of Sega Channel, said. "We hope this pilot will result in determining a significant market potential for interactive competition via Sega Channel video gameplay."

David B. Lockton, president and chief executive officer of Interactive Network, stated, "Sega Channel is an exciting concept, one which we believe will find a significant market. IN offers a promising, supplemental application of our technology -- enriching the experience of a segment of the Genesis market through real time competition for fun or prizes. We can make such competition available to an unlimited number of video game players."

Interactive Network's backstream path, to be employed in the subsequent Sega Channel pilot, is a patented methodology by which all participating game players can transmit their scores to the company's central computer system. In this instance, players will do so by connecting their telephone to the IN hardware for a 20 second local call. This brief call is the only use of the telephone line.

Scores are analyzed almost instantly. Within five minutes, by which time all scores are presumed to have been reported, participants will receive the names of the winners along with a histogram showing their own ranking among all other players.

Interactive Network is the only company offering a subscription service that allows home viewers to play along in real time with televised game shows, sports, entertainment and education programs for fun and prizes. Strategic investors include National Broadcasting Co., Inc., Tele-Communications, Inc., Gannet Co., Inc. and A.C. Nielsen. Interactive Network is publicly held company trading under the NASDAQ symbol "INNN."

-0- 1/27/94

/CONTACT: Joan Cear of David S. Wachsman Associates Inc., 212-750-7770/
 (INNN)



CO: Interactive Network, Inc. ST: California IN: CPR SU:

TM -- NY008 -- 6636 01/27/94 09:02 EST
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