Press Release

April 10, 2000

OTTAWA, Canada - 10 April 2000: Espial Group, the leader in Internet appliance solutions, has joined forces with Internet Appliance Network (IAN), the first company to combine Internet marketing and e-commerce with web-enabled devices, to produce the WebPlayer, an innovative Internet appliance for Virgin Entertainment Group.

Launched today, the WebPlayer from Virginconnect is a flat-screen Internet device that delivers a desktop-equivalent multimedia browsing experience without a PC. Virgin is distributing the WebPlayer to a select 10,000 customers who will be able to listen and securely purchase CDs over the Internet without a home PC. It is based on Espial Escape ™ version 4.0 web browser and Espial Espresso ™ GUI platform.

"As entertainment and the Internet converge with smart devices, a new paradigm emerges of customized information and application services delivered to connected and portable devices," says Jaison Dolvane, president and CEO of Espial. "IAN and Virgin are at the forefront of this convergence and have taken advantage of Espial's industry-leading Internet solutions to power the WebPlayer. The WebPlayer offers rich functionality and support for leading web standards, providing consumers access to the entire Internet and millions of online transaction-based services. Espial's alliance with IAN combines the industry's leading Internet appliance infrastructure solutions together with a revolutionary approach that converts hardware into powerful media and delivers it as one turn-key solution."

IAN's solution of a branded Internet appliance uses Linux, Java, and core technologies from Espial for a more compelling user experience. Consumers, however, only see a Virgin-branded browser interface for content, applications, e-commerce, online advertising, customer support, and so on. This gives Virgin continuous exposure while offering consumers a simple alternative to surfing the Internet.

Virgin Entertainment Group considers the Webplayer to be a comprehensive marketing and branding solution for customer acquisition, retention, and relationship management. It will enable the retailer giant to build a strong online presence quickly and cost-effectively while creating more meaningful and personalized customer relationships. In effect, it will allow Virgin to actively participate in their customer's online experience as both access provider and private portal. It is a new e-commerce model that acts as a direct bridge between retailers and their customers.

"Espial's software technology has proven to be a driving force behind the Internet appliance industry and the progression of pervasive computing," says Audrey Parma, President of IAN. "To deliver a compelling solution for Virgin Entertainment, we needed a multimedia solution equivalent to desktop browsers; Espial Escape is the most advanced browser for Internet appliances on the market today. Together with Espial and Virgin, we are well ahead of revolutionizing the way consumers identify with brands and how people shop on the web."

The WebPlayer boasts a fully integrated plug-and-play Internet access platform, 56k/v90 access, a branded custom interface, complete online shopping and Virgin-program benefits. Customers can buy Virgin online products and, for additional convenience, have their billing information stored for use at any web site.