Veon and Sun Deliver Advanced Interactive Video Solutions for Broadband Networks

Agreement Accelerates HyperVideo(R) Deployment for Entertainment, E-Commerce and Advertising on High-Speed Internet Services.

ANAHEIM, CALIF. - December 7, 1998 -- Addressing the burgeoning broadband services marketplace, Sun Microsystems, Inc. and Veon, Inc., today announced a marketing agreement to jointly promote VeonTM HyperVideo© products to provide innovative, interactive digital video solutions on Sun's SolarisTM operating environment. The agreement targets cable, telecommunications and content service providers and delivers a robust environment for running a broad range of next-generation broadband web-based interactive video applications. At the core of this effort is the optimization of Sun's Solaris operating environment and JavaTM technologies with Veon's HyperVideo Client/Server solution.

"Veon and Sun are playing a leading role in the convergence of media, telecommunications and computing,quot; said Bill Correll, group manager for digital media markets, Sun Microsystems, Inc. "Our collaboration with Veon will accelerate the deployment of web-based, interactive video programming developed by advertisers, E-commerce vendors, entertainment and cable companies."

"Sun's robust platform with Veon's HyperVideo solution is ideally positioned to capture the growing market for interactive video applications on broadband web services," said Joanna Shields CEO at Veon. "By co-promoting our respective strengths, Veon and Sun will enable content providers to deploy next-generation interactive video applications on a scalable, reliable and open computing platform."

Veon and Sun At AMC Networks

Veon announced today that it has licensed its HyperVideo server software running on Sun's Solaris operating environment to Cablevision Systems Corp. for the production and deployment of broadband HyperVideo programming by AMC Networks. AMC Networks will be offering HyperVideo programming beginning with Romance Classics' Romancing America, the first HyperVideo multi-episode program that will be produced for and distributed both on TV and on broadband Internet services. A HyperVideo version of Romancing America is being demonstrated at the show today.

"HyperVideo provides us a vehicle to produce and distribute a new kind of broadband viewer experience based on our TV properties," said Gemma Toner, senior vice president of New Media Development of AMC Networks. "Internet viewers on broadband will have access to unique video and content not available in the TV version of the program."

A Market Leading Solution

The Veon HyperVideo System provides an unprecedented solution for creating interactive advertising, compelling electronic commerce, and enhanced interactive video. The HyperVideo solution includes tools for adding interactivity to existing media assets and production services to assist customers in developing interactive content, and application servers to deploy the content across all distribution media - from Internet to broadband cable, telco and satellite. As the leading Internet server operating system, the robust and scalable Solaris operating environment can support more users, heavier workloads and greater network traffic than any other competing operating environment

Veon, Inc.

Founded in 1994 as Ephyx Technologies, Veon brought revolutionary HyperVideo technology to market, enabling tracking and interaction with full-motion, real-time video imagery for the first time. Veon is now delivering a full range of server products, development tools and professional services for enabling broadband video entertainment, advertising and e-commerce. Veon technology enables an engaging, full-motion interactive video experience for broadband applications, and a more compelling interactive experience for the Internet. Veon corporate offices are located in San Francisco and its research and development operations are located in Israel.

Sun Microsystems, Inc.

Since its inception in 1982, a singular vision, "The Network Is The ComputerTM," has propelled Sun Microsystems, Inc. (NASDAQ: SUNW), to its position as a leading provider of high quality hardware, software and services for establishing enterprise-wide intranets and expanding the power of the Internet. With more than $10 billion in annual revenues, Sun can be found in more than 150 countries and on the World Wide Web at http://sun.com.


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