USA Video Interactive Files Form 10Q For Third Quarter of 2000
Monday, 20 November 2000

MYSTIC, Connecticut, November 20, 2000 -- USA Video Interactive (NASD: USVO; CDNX: US; www.usvo.com) on Monday reported revenues of $307,464 and $564,064, respectively, for the quarter and nine months ended September 30, 2000. The revenues were reported in the company's quarterly 10Q filing with the U.S. Securities and Exchange Commission, which is available for review at www.freeedgar.com or www.edgar.com.

The company also reported operating expenses of $1.06 million for this year's third quarter, compared with $409,747 for the third quarter of 1999, and $2.7 million for the first nine months of 2000, compared with $992,786 for the comparable 1999 period. The rise in operating expenses is consistent with the costs of adding technical staff, developing and refining products and services, and conducting more aggressive sales and marketing efforts.

The company also summarized highlights for the third quarter:

• Form 10 Accepted by SEC and Over-the-Counter Bulletin Board Trading Resumed: The common stock of USA Video Interactive Corp. resumed trading August 29 on the NASD OTC-BB upon reinstatement by the National Association of Securities Dealers following acceptance of the company's Form 10 filing by the Securities and Exchange Commission.
• Alliance With EMC: The company teamed with EMC Corp. (NYSE: EMC; www.emc.com), the world leader in information storage, to offer a highly reliable, high speed, end-to-end media solution that utilizes EMC's family of CLARiiON storage systems.
• D.C. Public School Contract Won: The company was awarded the contract to supply the Washington, D.C., public school district with a complete interactive video streaming solution worth approximately $300,000.
• Partnership Signed With HKNet for Hong Kong, Asia Pacific: The company signed an agreement with HKNet to bring streaming video and video on demand to HKNet's customers in Hong Kong and elsewhere in the Asia Pacific region. HKNet is an Internet joint venture between NTT Communications Corp. (NYSE: NTT) of Japan and CCT Telecom Holdings Ltd. (SHEK: 0138) of Hong Kong.
• Civic Enterprises Signs USA Video for Australia/New Zealand Project: The company launched its strategic international sales and marketing initiative with an agreement to bring Internet video and video on demand to Australia and New Zealand in a joint venture agreement with Civic Enterprises Ltd. of New Zealand. The companies are working to serve at least 100,000 people in Australia, New Zealand and elsewhere in the Pacific Rim.
• Management and Technical Staffs Expanded: The company positioned itself for growth with the addition of key players on its management and technical staffs. Robert D. Smith, Jr. was named Chief Operating Officer in August. Smith was formerly a vice president at Sonalysts, Inc., of Waterford, Conn., which he helped build into a $50 million international high-tech corporation. A graduate with distinction of the U.S. Naval Academy, Smith's expertise spans corporate strategy and goal implementation, personnel and contract management, and technical project planning and execution. Kent Norton was named Chief Technical Officer of the company, greatly expanding the company's strength in the management of highly technical, large-scale projects; he also retains the title of Chief Information Officer. Additionally, Jeff Lecce joined the company from Computer Sciences Corp. as an Operations Manager in the fulfillment of customer orders and services; and Ernest Kinsler joined from CSC as an Operations Engineer in the building and deployment of solutions sold by the company. Project manager Daniel Freitas from Raytheon Systems Co. and senior software engineer Matthew Stahl from Sonalysts Inc. joined subsequent to the end of the third quarter in the design and development of the company's global media streaming solutions.
• Inetcable.com's Initial Order Placed: Inetcable.com placed the first in a series of orders for the North American deployment of USA Video Interactive's video application service.
• $1 Million Contract Inked for Video Equipment, Services to China: The company was selected by T.W. SVOD Information and Technology Co., Ltd., of Shenzheng, China, to provide at least 50 Hurricane Mediacaster™ servers and video technology and expertise over the next two years.
• Company Addresses Department of Education Conference: The company's Director of Education Technology, Julia Launer, addressed the U.S. Department of Education's Digital Divide Conference on ways in which USA Video Interactive technology can change the inequities of the digital divide into the potential of digital opportunity in the nation's schools.
• ApplicationStation.com Announces Deployment: ApplicationStation.com announced it would deploy USA Video Interactive technology in providing video-enhanced training, productivity and other applications to its customers.

Subsequent to the third quarter, there were several significant developments:

• Leading Patent Litigation Firm Retained: Sullivan & Worcester LLP, the internationally known law firm, was retained by the company to protect its rights under its pioneering 1992 store and forward video patent and to explore licensing and other revenue-generating possibilities of the patent. Paul Gupta, a leading patent litigator, will defend the company's patent.
• Hotel Solution Demonstrated: The company demonstrated its turnkey hospitality package to more than 600 financial and technology professionals in the hospitality industry at the 47th annual Hospitality and Financial Technology Professionals trade show in Toronto.
• Educational Services Unveiled: At the 14th annual Technology + Learning Conference in Denver sponsored by the National School Boards Association, the company demonstrated how its K-12video.com portal can bring the latest digitized educational content into the classroom without schools having to make a large up-front investment in hardware and content.
• New London Schools Add USA Video Technology: New London (Conn.) Public Schools added next-generation video capabilities to their instructional and educational offerings by integrating a USA Video Interactive VoD system into their computer infrastructure.
• Company Defines the Future of Television and the Internet: USA Video Interactive addressed two separate Paul Kagan Associates conferences on video on demand and streaming media, describing USA Video Interactive's leadership in developing a solution to protect property rights of content providers and defining the future of television as "videocentric television" with unprecented profit potential.

About USA Video Interactive
USA Video Interactive is an international designer and supplier of high-tech Internet streaming video and video-on-demand systems, services and innovative end-to-end solutions. The USA Video Interactive patent for store-and-forward video, #5,130,792, was filed in 1990 and issued by the United States Patent and Trademark Office on July 14, 1992; it is considered a pioneer patent in the field of video-on-demand and Internet video. It has been cited by at least 133 other patents. The international law firm of Sullivan & Worcester and leading patent litigator Paul Gupta are representing this patent. In 1999, USA Video Interactive was awarded similar patents in England, France, Spain, Italy and Germany; the company has patents pending in Canada and Japan. The USA Video Interactive patented video technology gives users full-motion video; the flexibility of standard, VCR-like controls; and the convenience of a standard internet-browser format for access. It provides video images significantly faster and at a higher degree of resolution than with previously available methods; significantly overcomes bandwidth restrictions; and eliminates the blockiness and slowness of current technologies -- all at a lower cost and at or near broadcast quality. USA Video Interactive is nearing completion of a patented Wavelet compression technology that will further enhance the company's ability to deliver Internet video to home modem users and reduce storage and download-time requirements for all users, including those with broadband connections. For more information, visit www.usvo.com.

For more information on USA Video Interactive, visit www.usvo.com. USA Video Interactive Corporate Headquarters Office: 70 Essex Street; Mystic, CT 06355; (800) 625-2200; (860) 572-1560. Canada Office: 837 West Hastings Street; Suite #507; Vancouver, B.C. V6C 3N6. Trading symbol on the NASD OTC BB: USVO; Trading symbol on The Canadian Venture Exchange: US. Standard & Poors Listed. CUSIP 902924208; USA Video, USA Video Interactive, Video-On-Demand and Video Yellow Pages are trademarks of USA Video Interactive.

The Canadian Venture Exchange (CDNX) has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. For more information contact: Tony Castagno, Media Relations, 860-572-1560; Kevin Yorio, Investor Relations, 860-572-1560; . This press release may contain forward-looking statements. Actual results may differ materially from those projected in any forward-looking statement. Investors are cautioned that such forward-looking statements involve risk and uncertainties, which may cause actual results to differ from those described.

Last Updated ( Tuesday, 05 December 2006 )