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Motorola Invests Equity Stake In WorldGate Communications

January 22, 1997


Motorola Inc., Multimedia Group announced today that it has invested in an equity stake in WorldGate Communications. WorldGate, creators of the interactive TV Internet access service, will now join the other members of Motorola's CyberSeed Venture program in delivering next generation content, tools and interactive services for broadband networks.

At a basic monthly fee of $4.95, the revolutionary WorldGate service is the cable industry's first interactive Internet service which uses an advanced analog cable converter, the existing TV set and a remote control (patents applied for). No PC or other set-top box is required, nor is there any use of the cable company's video spectrum. Using the vertical blanking interval, a normally unused portion of the video spectrum, the existing cable infrastructure will allow WorldGate to offer data rate speeds of 100,000 bits per second, three times as fast as the fastest telephone modem.

Additionally, WorldGate has pioneered Channel Hyperlinking(TM), the ability for subscribers -- with a single key stroke -- to connect directly to a Web site associated with a TV show or commercial announcement. Logging on to this service, for e-mail, Web browsing, or Channel Hyperlinking, requires less than three seconds. The WorldGate service will begin its initial deployments in the first quarter of 1997.

The Motorola CyberSeed Venture Program stimulates the growth of companies that provide customers with revenue-generating development tools, interactive services and content. Through this support, the program aims to maximize the potential of broadband networks as they are deployed worldwide.

"Motorola's investment in WorldGate reinforces our partnership with the cable industry. Motorola is committed to bring cutting edge technology solutions to cable operators," said Jim Phillips, corporate vice president, Motorola Inc. "WorldGate's service will be a great addition to our CyberSeed Venture program."

"Motorola is an excellent strategic technology partner of significant stature which will help guide WorldGate in the development, deployment and marketing of its interactive TV internet access service," said Hal Krisbergh, Chairman and CEO of WorldGate Communications.

Motorola's CyberSeed Venture program was launched by the Multimedia Group in March of 1996 to support the growth of companies that are developing content, tools and interactive services for broadband networks as well as companies that will benefit from high-speed data access to homes and businesses. The goal of the program is to maximize the potential of broadband networks as they are deployed worldwide. It also demonstrates Motorola's commitment to creating this new industry -- much in the way the company established the cellular and paging industries. Other CyberSeed companies are Omniview, Inc., Virtus Corporation, Viewpoint DataLabs, Multichannel Communications Sciences Inc., Protozoa and Media Technology Ventures.

Motorola's Multimedia Group, a unit of the Messaging, Information & Media Sector, develops, manufactures and markets systems for the convergence of voice, data and video communications services over advanced broadband multimedia platforms. Motorola is one of the world's leading providers of wireless communications, semiconductors, and advanced electronic systems and services. Major equipment businesses include cellular telephone, two-way radio, paging and data communications, personal communications, automotive, defense and space electronics and computers. Motorola semiconductors power communication devices, computers and millions of other products. Motorola's 1996 sales were $28 billion.


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