PR16/24.03.95 

Under Embargo until 6.00 am on 24 March 1995 

ONLINE MEDIA ANNOUNCES SECOND GENERATION 
SET-TOP BOX 

... available for volume shipment from Q3 95 ... 

Online Media has announced its new second generation intelligent digital 
set-top box: the STB2.  Designed specifically for large scale trials and 
early volume deployment, the STB2 will be commercially available in volume 
from the end of the third quarter of 1995. 

Higher levels of integration of the key components have ensured that the 
costs of the STB2 have been reduced substantially whilst it is completely 
upwards compatible with the consumer proven STB1, Online Media's current 
offering.  It is the first product to be based on the new ARM7500 chip and 
provides a high performance, cost-effective and affordable solution for 
interactive television (iTV).  The STB2 is available with MPEG 1 or MPEG 2 
and in PAL and NTSC models.  This combination of features means that it is 
particularly suited to many high volume trials and, ultimately, commercial 
use around the world. 

"Anyone considering a large trial will find the STB2 a natural choice. 
Unlike passive devices, it has been designed to support and encourage 
active participation - whether it's selecting the movie you want when you 
want it, running a game or educational program locally, or shopping from 
your armchair" comments Malcolm Bird, chief executive of Online Media. 

"This announcement demonstrates how we are following both the strategy and 
the timescales we set ourselves when we launched Online Media less than nine 
months ago" continues Bird.  "The new STB2 is just one in a series of 
advanced products and services we are developing." 

The new ARM7500 is one of the world's most highly integrated devices. 
Developed by Advanced RISC Machines Ltd (ARM) and Online Media, it 
incorporates the functionality of three previous chips - CPU, graphics 
controller and input-output/memory controller - in a  single chip.  Along 
with the use of a single chip for MPEG 2 (ML/MP) video  and audio, this has 
resulted in a greatly simplified design. 

"As well as leading to major reductions in production costs, these advances 
in design have allowed us to increase the sophistication of our networking 
support.  The overall result is a much smaller, more cost-effective unit," 
says John Redford, Online Media's technology development manager. 

The STB2's open architecture, runtime software support and complete 
development environment includes a number of advanced design features which 
utilise local processing capability.  This approach provides very efficient 
data handling resulting in benefits such as reduced network traffic. 

Other STB2 advanced design features include: support for multiple authoring 
environments such as Macromedia, Oracle and Sybase, mature development 
tools, multiple network connectivity and support for multiple server 
protocols. 

Notes to Editors: 

Online Media:  Online Media is a division of the Acorn Computer Group Plc 
and has the full strategic backing of Acorn's parent company, Olivetti. 
Established in July 1994, Online Media provides innovative affordable 
interactive television products in hardware, software and services to meet 
the requirements of the markets emerging from the information superhighway. 
The company focuses on cost competitive designs, which exploit emerging 
standards and its first product, an intelligent digital set-top box, is 
already in production and in use.  Alongside hardware products, Online Media 
offers authoring systems, services and consultancy in service development, 
as well as other areas.  All Online Media designs and part designs are 
available under licence. 

Online Media heads the consortium running the Cambridge Trial, a leading 
demonstration of interactive TV, in Cambridge, England.  The consortium 
includes the following companies: Advanced Telecommunications Modules Ltd. 
Cambridge Cable, ICL, Online Media and SJ Research Ltd.