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April 17, 2001 04:30am
Playboy Selects ACTV as Digital Media Services Partner
Source: ACTV, Inc.
by: Company Press Release

(NEW YORK, NY) -- Playboy.com, Inc., a wholly owned subsidiary of Playboy Enterprises, Inc. (NYSE: PLA - news) and ACTV, Inc. (Nasdaq: IATV - news) announced today a long-term agreement in which the companies will collaborate on digital media initiatives for Playboy.com, the #1 lifestyle and entertainment destination Web site for men.

Under the five-year contract, Playboy and ACTV will develop advanced interactive and digital content that creates new revenue opportunities for Playboy.com while also significantly expanding the appeal of the Web site for users. Such opportunities include the development of online games, e-commerce tie-ins to Playboy.com programming, new offerings on the Playboy Cyber Club subscription site, and interactive programming for Playboy's Web-based gaming initiatives. Collaboration on future interactive television (iTV) initiatives is also included in the partnership. The agreement was crafted by Playboy.com president Larry Lux and ACTV Enhanced Media Services president Bruce J. Crowley.

The agreement draws on ACTV's broad portfolio of interactive TV tools, technical and creative services, and proprietary products including game development, enhanced media technology, iTV architectural services and individualized television applications. The companies will share advertising, subscription and e-commerce revenues generated by ACTV-enhanced Playboy content. ACTV will also receive fees for technical and creative services performed for Playboy.

``Playboy has been successful in extending our established print brand to electronic platforms such as TV and the Internet,'' said Christie Hefner, chairman and CEO of Playboy. ``Now, as TV and the Internet converge, Playboy is ideally positioned to tap the large revenue potential of new broadband platforms. As our partner in digital media, ACTV's vast experience and diverse portfolio of gaming, interactive TV and data management tools will allow us to create a richer experience for Playboy's legion of fans and new revenue streams for our stockholders.''

``We are delighted that Playboy.com has selected us as its digital media partner, and look forward to playing a key role in extending the Playboy brand in the broadband world,'' said William C. Samuels, chairman and CEO of ACTV. ``This agreement is a result of our strategic efforts to create the digital media industry's only comprehensive product and service offering, and it illustrates our ability to become the digital services provider of choice for leading media companies as they pursue new interactive applications. Playboy and ACTV are already hard at work developing innovative Internet and interactive TV content that will draw on our enhanced media expertise to add a new dimension to Playboy's unique global brand.''

Playboy has been at the forefront of employing interactive technologies to enhance its unique brand of lifestyle and entertainment content. Playboy.com offers user-directed content on both its free and subscription Web sites, including interactive polling, feedback on plot direction of Playboy TV content, downloadable video clips and Web simulcasts of such premium events as Playboy Mansion parties, Mardi Gras and the Super Bowl. Many of these events are constructed with tie-ins to e-commerce, the fastest growing of Playboy's multiple Internet revenue streams.

About ACTV, Inc.

(Nasdaq: IATV - news) is a digital media company providing technical and creative services, tools and proprietary products for enhanced media, interactive TV advertising and personalized programming applications. Based in New York City, ACTV has strategic relationships with key players in the Internet, television and digital technology fields, including Liberty Digital, Motorola Broadband Communications Sector, OpenTV and Liberty Livewire Corporation. For more information, visit http://www.actv.com.

About Playboy Enterprises

Playboy Enterprises is a brand-driven, international multimedia entertainment company that publishes editions of Playboy magazine around the world; operates Playboy and Spice television networks and distributes programming via home video and DVD globally; licenses the Playboy and Spice trademarks internationally for consumer products; is developing a Playboy-branded, location-based entertainment business anchored by casinos; and operates Playboy.com, a leading men's lifestyle and entertainment Web site.

About Playboy.com

Playboy.com, a wholly-owned subsidiary of Playboy Enterprises, Inc. (NYSE: PLA - news), an international multimedia entertainment company; is the #1 lifestyle and entertainment destination Web site for men. Playboy.com operates Playboy-branded Web sites targeting the entertainment and lifestyle interests of young men, including: Playboy.com (http://www.playboy.com), an advertising and e-commerce-supported Web site that offers a range of entertainment, information and e-commerce; Playboy Cyber Club (http://cyber.playboy.com), a members-only subscription site featuring premium Playboy content and exclusive online events; the Playboy Store (http://www.playboystore.com), which sells Playboy-branded products; and Playboy Auctions (http://auctions.playboy.com), which auctions Playboy-branded merchandise and admission to exclusive Playboy events and allows fans to auction their own Playboy memorabilia and collectibles. Playboy.com also operates SpiceTV.com (http://www.SpiceTV.com), a site featuring premium adult entertainment under the Spice brand.

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks defined in this document and in statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the companies, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the companies disclaim any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

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