WorldGate Communications, Inc. announced today that it has completed a round of funding for the expanded development, deployment and marketing of its interactive TV Internet access service. Citicorp, Motorola, Cablevision Industries founding pioneer and now private investor, Alan Gerry, and two leading venture capital firms, Advent International and Needham & Co., are included in the first outside investment group to join WorldGate since its founding in 1995.

In October, WorldGate Communications announced both domestic and international Internet service test agreements with Cable companies representing over 10 million basic cable households. These companies include: Comcast Cable Communications, Cablevision Systems Corp., Adelphia Cable Communications, TeleWest (TCI/US West Partnership) and Charter Communications. Additional test agreements are pending.

At a basic monthly fee of $4.95, the revolutionary WorldGate(TM) service (patents applied for) is the cable industry's first interactive Internet service which uses an advanced analog cable converter, the existing TV set and a remote control. 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 of subscribers with a single keystroke 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.

Hal Krisbergh, Chairman and CEO, WorldGate Communications, commented, "Giants like Citicorp, Motorola and a Cable visionary like Alan Gerry, in combination with major venture capital firms, Advent International and Needham & Co., put in place financial and strategic technology partners of significant stature. These partners provide WorldGate with sound financial footing from which we can build our services."

John Battin, Senior Vice President and General Manager of Motorola's Multi-Media Group, noted, "As the cable industry expands to provide new data and telephony services, it is exciting and important for Motorola to be part of that landscape. WorldGate's technology and its consumer applications provide an excellent complement to our Cable industry efforts."

The WorldGate service had its premiere at the Western Cable Show in Anaheim in December 1996. This was the first-ever presentation of the WorldGate service in its fully functional form. The WorldGate service unveiling included presentations on both General Instrument and Scientific- Atlanta analog and digital converter platforms. In addition to displaying the WorldGate service for the first time, presentations were made to each of the top Cable companies focusing on WorldGate's strong analog platform and low capital investment per home, as well as enhanced capabilities through the digital platform.

Alan Gerry, Chairman, Granite Associates, L.P., added, "It's exciting for me to work with Hal Krisbergh again in a new role. I believe the WorldGate service will provide the Cable industry with one of the most important innovations in years."

Ron Walter, Director of the Technology Investments Portfolio at Citicorp, commented, "In the past several years, Citicorp has invested in some of the most exciting and successful new services launched. We see WorldGate Communications as a leader in creating a whole new platform of opportunity for the Cable industry."

WorldGate will begin its initial deployments in the first quarter of 1997, with full rollout scheduled for mid-1997.