Press Release

• Espial® Escape™ browser provides advanced features that enable IPTV service providers to increase customer loyalty and offer an engaging Internet on TV experience.

• Kreatel® IP-STB Solution combines hardware and software to enable a broad range of TV-centric services over IP.

Ottawa, Canada, September 2, 2005 — Espial®, a leading provider of client IPTV applications and middleware today announced that Kreatel®, a market leader in set-top box solutions, has licensed Espial Escape®.

“Espial Escape provides service providers with an advanced standards-based platform for developing content services to increase customer loyalty,” said Lars Bengtsson , Kreatel President and CEO. “What was important in our decision making process was Espial Escape's pre-integration with popular IPTV middleware. This advantage ensured we could build the entire solution according to our tight schedule.”

Support for Internet standards and advanced TV-specific improvements such as Fit-To-Width web page rendering for TV and popular plug-ins ensures a faithful, graphically-rich browsing experience for use within the Kreatel device. Espial Escape is designed for fast deployment and has already been selected and integrated by leading IPTV middleware developers including Myrio (a Siemens subsidiary).

“We are very pleased to have been selected by Kreatel and for this opportunity to jointly support their customers. Kreatel has established impressive partnerships with leading companies, and Espial is an integral part of any solution that helps consumers experience a complete IPTV solution,” Dilshan De Silva, Marketing Director of Espial's Browser Business.

Espial will be demonstrating its browser solutions on a variety of leading set-top boxes in Hall 4, Stand 374 at IBC in Amsterdam , September 9th to 13th .

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About Espial

Espial is a leading provider of client applications and middleware for set-top boxes and consumer electronic devices. Espial applications and technologies include Video On Demand, Electronic Program Guides, User Settings Management, Interactive Content Portals, and Web browsing. The company is the recipient of the Deloitte and Touche 'Fast 500' top companies in North America , two years running. Espial software is deployed and accredited for more than 100 consumer designs such as Motorola, Siemens, Sumitomo Electric Networks, Thomson, Philips, LodgeNet, OnCommand, S-Net Systems, and i3Micro Technologies. Espial can be found on the web at www.espial.com .

Media Contact:

Meredith Dundas

Espial, Marketing Communications Manager

+1-613-230-4770 x 1142

mdundas@espial.com