TVN Cuts Deal With Tele-Media For Launches


Burbank, Calif. -- Tele-Media Corp. will launch TVN
Entertainment Corp.'s "TVN Digital Cable Television" this fall in its
Pennsylvania and Kentucky systems as part of an agreement reached between the two parties
last week.

Tele-Media will use TVN's complete turnkey service to
launch digital-cable programming and transactional services for Tele-Media's customers in
Pikeville, Ky., and Dallas, Pa. Tele-Media will launch TVN in Pikeville Sept. 1 and in
Dallas Oct. 1, TVN senior vice president of affiliate sales and marketing David Sears

It's unclear how many Tele-Media subscribers TVN will
reach, or whether the company will eventually roll out its 32-channel,
near-video-on-demand movies and pay-per-view event programming to the MSO's full
250,000-subscriber base.

"We look forward to a long and mutually beneficial and
profitable relationship with Tele-Media," Sears said in a prepared statement.

Tele-Media senior vice president of operations Frank
Vicente added in a prepared statement, "TVN's turnkey marketing and technical support
will make it easy for us to market our digital tiers to our customers. We have made a
commitment to providing our subscribers with a full complement of digital programming and

The Tele-Media-TVN deal comes on the heels of TVN's
Millennium Digital Media launch announcement last week. Millennium will roll out TVN's
turnkey digital service to its 140,000 customers in Washington, Michigan, Maryland, Oregon
and Idaho beginning this fall.

The announcements also follow TVN's strategic alliance with
Digital Funding International to help operators finance the cost of purchasing digital
boxes for the company's digital service.

The DFI deal will lessen cable operators' initial capital
investments for acquiring such digital equipment as set-top boxes and headends. Operators
have to pay TVN $280 to $290 for each digital box, as well as a $3 monthly fee for each
digital subscriber.