LOS GATOS, CA – February 7, 2006 – ICTV®, creator of HeadendWare®, the most powerful platform for the delivery and distribution of interactive television content, today announced that it is merging with Switched Media™, a developer of solutions for mass customization of live video streams.

The agreement will enable the combined companies, which will retain the ICTV name, to deliver personalized, Web-driven content to television that combines the live stream video processing capabilities of Switched Media InStream™ solution with the interactive capabilities of HeadendWare. In addition, the entire Switched Media team will join ICTV, strengthening the world class technical and management teams of ICTV.

Based in San Francisco, Switched Media has developed a proprietary software solution that enables processing and manipulation of compressed digital video streams without costly decode and re-encode cycles. The solution provides a tool set including live stream scaling, overlays and animations for cost-effective, scalable full personalization of video at the network edge. The technology, which runs on standard rack-mounted PC hardware and operating systems, enables network operators and programmers to provide subscribers with a personalized, Web-driven television experience that seamlessly blends interactive content with live video streams.

“The television industry today is facing unprecedented change,” said Jeff Miller, president and CEO of ICTV. “The emergence of new distribution channels and viewing devices has given more power to consumers and increased accountability to advertisers, both of whom have grown accustomed to the personalization and control of the Internet. The combined technologies of Switched Media and ICTV will enable network operators, programmers and advertisers to create a personalized interactive subscriber viewing experience within any video stream – including live television and Web video – on any cable or IPTV set-top box, or mobile device.”

“Too often, the isolated and exclusive environments of live TV and interactive applications have forced programmers and network operators to choose between live video and interactivity,” said Forman, CEO and co-founder of Switched Media. “When we founded Switched Media, it was with the intent of bringing personalization and interactivity to live television, and creating a compelling, immersive viewer experience. By combining the capabilities of Switched Media and ICTV, we will enable programmers and network operators to deliver interactive video applications such as mosaics and local overlays that combine live television with Web-powered content into a single, targeted TV programming stream.”

Forman, who had been senior vice president of marketing for ICTV before co-founding Switched Media, will return to ICTV as Executive Vice President and Chief Operating Officer. Michael Taylor, who has served as vice president, business development for both BigBand Networks and nCube, will join ICTV as Senior Vice President of Business Development and Distribution. Jeremy Edmonds, an industry leader in compressed domain video processing, has joined ICTV as System Architect.

ICTV expects to demonstrate solutions based on the integration of Switched Media and ICTV technologies at the CableLabs Winter Conference February 26-28 in Colorado Springs.