Deal Initiates First Ever Launch of VOD Karaoke Service
With Unique Merchandising Component

BURBANK, CA – September 5, 2005 - TVN Entertainment today announced a deal with Sound Choice, the leading provider of professional karaoke music tracks and equipment in the US, to be the exclusive distributor and sales agent for The Karaoke Channel. The service will be launched with an initial offering of 300-500 songs from Sound Choice’s extensive library of titles, which TVN will encode, transport, and make available to its wide network of cable MSO and telecommunications affiliates throughout the U.S. and Canada.

Karaoke Channel subscribers will be given access to the entire library of songs in either a free-to-consumer or SVOD model. For those affiliates choosing the SVOD model, TVN will support a free preview package to drive awareness and encourage sampling. Pricing is determined on a market-by-market basis. Genres of songs include: Pop, Modern Rock, Classic Rock, Country, R&B/Hip Hop, Oldies, Standards, Show tunes, and Specialty. Additionally, TVN and Sound Choice will be rolling out a direct response merchandising offer which includes a karaoke microphone and mixer to enhance the on demand karaoke experience.

“The immense popularity of karaoke has made it a $300 million industry. Our partnership with TVN allows us to leverage TVN’s advanced asset management platform and the capabilities of VOD to extend our reach to the entire VOD market,” said Tom Turner of Sound Choice.

Cable MSO’s who have signed on include Advanced, Armstrong, Bend, Blue Ridge, Buckeye, Champion, Click, Muscatine, Shrewsbury, Sunflower, Verizon, and Wave.

“TVN continues to bring us innovative VOD applications, and the Karaoke Channel is a prime example,” said Mark Masenheimer of Blue Ridge Cable. “We are confident this category will catch on quickly among our customer base who look to our VOD offerings for the newest and most exciting programming options available from Blue Ridge.”