PR 13/26.02.95 

Under Embargo until 26 February 1995 

ONLINE MEDIA AND VIEWCALL EUROPE PLC SIGN JOINT 
DEVELOPMENT AND SUPPLY AGREEMENT 

Online Media and Viewcall Europe Plc announce today the signing of a supply 
and co-operative development agreement under which Online Media will design 
and supply  digital set-top boxes for Viewcall's specific requirements. 

The Viewcall service which it is intended will go to commercial trial later 
in the year with not fewer than 1,000 terminals, will allow home users to 
access an exciting new world of interactive services including shopping, 
local information, banking, advertising, financial and health services and 
E-mail, at a cost which Viewcall believes will be substantially lower than 
any known competitive products.  The agreement confirms Online Media as 
exclusive supplier for the first 125,000 set-top units. 

Viewcall has implemented its fractal compression software on the Online 
Media design which incorporates the new ARM 7500 high performance low power 
consumption RISC microprocessor.  This has resulted in the Viewcall set-top 
box, a breakthrough in interactive media, capable of bringing a wide range 
of visual and audio data for commercial services to the public via a TV set 
over existing telephone lines. 

The combining of the fractal and RISC technologies allows TV-quality still 
pictures to be carried - at speed - down an ordinary telephone line and to 
be accessed almost instantaneously.  This will allow numerous services to be 
provided into the home, including catalogue shopping, which is already 
attracting the attention of many service providers and advertisers seeking 
direct interaction with the consumer. 

The easy to use set-top box plugs into the television and into the telephone 
line.  Using a remote control the user can gain access not only to  services 
offered locally, but also to national and international networks,  including 
Internet. 

The Viewcall set-top boxes will be compatible with other transmission media 
ie cable as and when network availability makes changes economically viable 
for Viewcall subscribers. 

Basic Viewcall set-top boxes will provide access to the interactive services 
and will be expandable so that the user can grow the system to suit their 
needs by adding extras for use with games, in competitions and for E-mail. 

Suitably configured the Viewcall set-top box will be able to use a range of 
software packages already available for the Online Media designs as they can 
run many of the applications for the Acorn Computer range which is 
particularly strong in the educational arena. 

The set-top box in the Viewcall system falls under existing datacoms 
regulations and can therefore be used on the existing telephone network, not 
only in the UK but potentially throughout Europe. 

"We are pleased to be working in co-operation with Online Media and are 
delighted to have access to such cost-effective, advanced set-top designs. 
The use of our fractal compression software with the ARM 7500 
microprocessor will be a powerful combination and a first in the industry. 
As a result, Viewcall's ability to deliver - on demand - TV-quality still 
pictures and text with audio, puts real interactivity into the home at 
affordable cost several years ahead of any likely  competitors", claims John 
Bentley, Viewcall's Chairman. 

"The Convenience/choice services which we will be offering will make the 
information age happen now and represent a greater market than simply the 
provision of on-line movies. We are pleased that G.U.S., the major UK 
catalogue house, will be co-operating at an early stage in our trials", says 
John Bentley, who pioneered the concept of video cassette rental in the UK 
in the early 1980's. 

Malcolm Bird, Online Media's Chief Executive said "This agreement represents 
an exciting opportunity for us to expand our existing leadership position in 
the development of broadband interactive products to take a partnership role 
with Viewcall in the narrow band interactive TV market.  We look forward to 
the successful completion of the commercial trial and the national 
deployment to follow in ensuing years."