Press Release

OTTAWA, July 16 /CNW Telbec/ - Espial(R) (http://www.espial.com/) Group Inc. ("Espial" or the "Company"), (TSX:ESP), a leader in the delivery of IPTV software, today announced a reseller agreement with Power & Tel (http://www.powerandtel.com/). As part of the agreement, Power & Tel will resell the Espial MediaBase (http://www.espial.com/products/media_base/) Video-On-Demand platform to service providers in the United States. Power & Tel is an independent distributor of material for the telecommunications and cable TV industries worldwide. Espial MediaBase is included in their end-to-end IPTV solution to US customers.

"The Espial MediaBase VOD platform provides a key differentiator for our IPTV Solution. It is a cost-effective solution for enabling our customers to offer lucrative VOD and Timeshift TV services in both SD and HD formats" noted Jim Drain, VP North American Sales, Power & Tel. "For our North American Telco partners, Espial MediaBase is easy to implement, operate and manage. It has an excellent track record with dozens of deployments serving millions of IPTV subscribers."

Espial MediaBase is deployed with leading North American IPTV operators. It is a turn-key VOD solution with easy-to-use management tools, automated content workflow and pre-integration with a wide range of set-top boxes, digital rights management (DRM) and middleware.

"We're very pleased to work with Power & Tel and their Telco customers to implement VOD services quickly and cost effectively" noted Larry Roberts, Director of North American Sales, Espial. "North America is a very exciting market for VOD - it is quickly becoming a must have service offering for Telcos to remain competitive in a rapidly evolving market."

About Espial (www.espial.com)

Espial provides intelligent and open TV software to service providers in the cable, telecommunications and hospitality industries. Its middleware and video-on-demand solutions provide superior service delivery, advanced service innovation tools and the ability to serve a wide range of market segments - including over-the-top, IPTV, hybrid IP, multi-dwelling unit and enterprise. With over 2.5 million licenses of its patented software technology in use, Espial is a leading supplier of TV software. Espial is headquartered in Ottawa, Canada. For more information please call +1.613.230.4770 or visit www.espial.com.

About Power & Tel (http://www.ptsupply.com)

Founded in 1963, Power & Tel is currently an industry leader in the sales, material management and distribution of product solutions to the worldwide telecommunications marketplace. Headquartered in Memphis, TN; the company's extensive distribution network is a critical link between telecommunications manufacturers and the service providers needing their solutions. For more information, call 901-866-3300 or visit www.ptsupply.com.

For further information: Inquiries from press or analysts: Kirk Edwardson, Director, Marketing, Espial Group Inc., Email: kedwardson@espial.com, Phone: (613) 230-4770 x1145

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