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MPEG-4, an ISO standard, provides highly efficient audio and video compression optimized for the Internet. MPEG-4 goes beyond compression of audio and video by offering object-based encoding, graphics support, dual audio encoding and enhanced scalability. With the Philips MPEG-4 Solutions and Liberate client software in the Philips Set-Top Box, consumers will soon experience true interactivity, greater flexibility and a vast array of new choices.

``We're tapping the potential of the Internet in a whole new way,'' said Rob van Oostenbrugge, CEO of Philips Digital Networks. ``Clearly, the greater availability of broadband Internet access from DSL and cable modems creates opportunities for new entertainment services. Together with our partners such as Liberate, we are making streaming-enhanced interactive television a reality. We envision a bright future of rich audio and video delivery via the Internet.''

``Content formats continue to evolve quickly'', said Mitchell Kertzman, president and CEO of Liberate Technologies. ``Liberate will continue to work with leaders like Philips to incorporate support and interfaces for MPEG-4 and other emerging standards that complement our software platform, and provide a better TV experience for our customers and their viewers.''

The Liberate TV Platform(TM) software allows network operators and broadcasters to deliver enhanced TV content and services to television set-top boxes and other network appliances, using open Internet and IP-based standards. This seamless end-to-end system architecture enables digital television operators to author, prototype and deploy content rapidly, and integrate back end systems with state of the art application servers and partner services.

The demonstrations at the Philips booth pave the way for a variety of future MPEG-4 based streaming media applications. The demonstration features an MPEG-4 based Video-on-Demand application running on a Philips prototype set-top box. Content is received from a server over IP multicast.

About Philips

Philips Digital Networks -- a business group of the Philips Consumer Electronics division -- is a world-leading provider of advanced digital system solutions for Service and Network providers in broadcasting and video distribution. Philips Digital Networks offers product and service solutions for customers in both the professional side of the distribution chain, as well as for consumers to use in the home. In the consumer domain, Philips Digital Networks is a leading provider of set-top boxes for digital television and internet delivery, as well as personal video recording. The broad professional product portfolio includes a comprehensive range of television cameras, studio and compression equipment, conditional access systems and transmission systems for broadband cable networks to deliver a full array of interactive services. A flexible customer support program and active involvement in the bodies setting tomorrow's entertainment and information delivery standards makes Philips a natural partner for the digital broadcast era.

Royal Philips Electronics of the Netherlands (NYSE: PHG) is one of the world's biggest electronics companies and Europe's largest, with sales of $33.5 billion (EUR 31.5 billion) in 1999. It is a global leader in color television sets, lighting, electric shavers, color picture tubes for televisions and monitors, and one-chip TV products. Its 226,900 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, medical systems, and IT services (Origin). Philips is quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.news.philips.com.

About Liberate

Liberate Technologies is a leading provider of a complete software platform for delivering Internet-enhanced content and applications to information appliances, such as television set-top boxes and game consoles. Liberate's Internet-based client and server software allows network operators, such as telecommunications companies, cable and satellite television operators and Internet service providers to provide consumers access to network operator-branded applications and services. Headquartered in San Carlos, California, the company has sales offices in the U.S., and the U.K.

Early investors in Liberate include: Acer, America Online, Comcast, Cox Communications, General Instrument, Hambrecht & Quist, Lucent Technologies, Netscape, Nintendo, Mediaone Ventures, Oracle, Rogers Communications, Sega, Shaw Communications, Sony, Sun Microsystems, and Wind River Systems.

NOTE: Liberate, Liberate TV Platform and the Liberate name and logo are trademarks of Liberate Technologies. All other trademarks are the property of their respective owners.

``Safe Harbor'' Statement Under the Private Securities Litigation Reform Act 1995: Information in this release that involves Liberate Technologies' expectations, beliefs, hopes, plans, intentions or strategies regarding the future are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Liberate Technologies as of the date of the release, and we assume no obligation to update any such forward-looking statement. These statements are not guarantees of future performance, and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences or risks associated with our business are discussed in the Company's registration statement on Form S-1 declared effective by the Securities and Exchange Commission (``SEC'') on February 17, 2000, and in the other reports filed from time to time with the SEC.

SOURCE: Liberate Technologies