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Interact-TV Announces Affordable 1.2 Terabyte Home Entertainment Server

The Linux-Based TeraTelly(TM) Home Entertainment Server Sells for Under $2000

WESTMINSTER, Colo., -- Interact-TV(TM) (OTC: ITVI), a leading developer of home entertainment servers, today expands its Telly Home Entertainment Server line by introducing the new TeraTelly model GS1250 with 1.2 Terabytes of digital media storage in a compact device ideal for any stereo cabinet or entertainment center. TeraTelly models begin shipping in December 2004 with the first showing of the product at the upcoming January 2005 Consumer Electronics Show, Booth 26821. This introduction marks the availability of the largest home media storage capacity available to date in a single compact unit, at a ground breaking price of $1999.

Telly, the first home entertainment server built for the living room, makes it easy to store, manage, access and enjoy digital entertainment in the home. The TeraTelly model provides a vast shared digital video library that can include entire music CD, DVD and digital photo collections as well as recorded videos, home videos, and Internet downloaded videos. TeraTelly also includes DVD and CD archiving and instant access to weather, financial information and movie listings. This huge digital media library may be shared with networked Telly clients, media adapters, and PCs across any home network, whether wired or wireless, and can be managed from any web browser.

"We are seeing increased demand from consumers who have digital photos, music CDs and DVDs scattered across various devices in the home. They are looking for an easy and secure way to store and enjoy their digital media in one device, that can expand over time," stated Ken Fuhrman, CEO of Interact-TV. "A TeraTelly can store about 250 DVDs and still have room for thousands of music CDs and digital photos. Now consumers can search their entire media library from the comfort of their couch," he added.

Simple out-of-the-box setup and Telly's innovative trackball remote make it easy to access all of Telly's features from the TV screen. Telly has video and audio outputs to connect directly to a TV and stereo. Unencumbered by constraints of the traditional desktop and driven by cutting edge technology, Interact-TV's EOS(TM) Linux-based Media Platform is designed to provide customers with secure data storage and easy upgradeability. The TeraTelly Home Entertainment Server will be available directly from the manufacturer's online store at http://www.buyatelly.com and from a growing network of reseller partners throughout North America.

About Interact-TV Inc.

Interact-TV Inc. develops innovative software and products for the home entertainment server market that are designed to enhance the digital entertainment experience, creating an enjoyable and easy way to get the entertainment you want when you want it. The result is a family of outstanding products that easily integrate into home entertainment environments. Headquarters for Interact-TV are in Westminster, Colo. More information can be found at http://www.interact-tv.com.

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