Press Release

Ottawa, Ontario - July 28, 2009 - Espial (TSX:ESP), a leader in the delivery of TV software, today announced that Invitel Hungary (previously Vivendi Telecom) has successfully launched and is now expanding on-demand services using Espial Mediabase VOD servers. Espial MediaBase provides Invitel's customers with on-demand TV services such as Video on Demand, Network-based Personal Video Recording (NPVR) and TimeshiftTV (TSTV). Invitel is an incumbent operator covering one-fifth of Hungary and the second largest fixed line service provider in Hungary offering telephony, Internet, and data services to residential and business customers.

Invitel started offering its InviTV service one year ago to complement its core telephony, Internet, and data services. Invitel is using Espial MediaBase to drive Video On Demand, Network PVR and Timeshift TV services, sometimes known as Catch-up or Startover TV and Delayed or Replay TV. A single hardware and software infrastructure helps reduce hardware servers, storage, space requirements and costs, along with overall operating costs of the system. The system integrator for this deployment was Smart Com d.o.o., a key regional partner for Espial.

"As we begin to scale our InviTV subscribers, we're pleased to have chosen Espial MediaBase. This platform meets our requirements for scalability, application performance and service continuity" said Aron Javorniczky, Head of TV Services at Invitel. "As well, Espial MediaBase is a key ingredient in our service differentiation strategy - it allows us to offer a number of Timeshift TV and Network PVR channels. With this service mix, we're confident we can build InviTV into a very strong brand in the marketplace."

"We are very pleased to be part of this deployment with Invitel, even more so, to see the rapid growth in customer demand so early in their deployment" noted Robert Hopkins, Vice President of Sales for Espial in EMEA. "The Invitel success builds on our tradition of building lucrative on-demand services for our customers using Espial MediaBase. With Network PVR (NPVR) & TimeShift-TV support, operators can now offer an even richer set of services using a unified video network infrastructure. In addition to movies-on-demand, subscribers can access recordings of their favourite shows and also pause, rewind and fast-forward live, broadcast TV. As content owners come to recognise the benefits and security of NPVR, we expect to see increasing demand for Network PVR and TimeshiftTV services."

About Espial

Espial provides intelligent and open TV software to service providers in the cable, telecommunications and hospitality industries. Its middleware, video-on-demand and browser 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 3.5 million licenses of its patented TV software technology in use, Espial is a leading supplier of TV software. Espial is headquartered in Ottawa, Canada. For more information please visit the Espial website @ www.espial.com.

About Invitel (previously Vivendi Telecom Hungary)

Founded in 1994, Invitel offers telephony, Internet, and data services to residential and business customers in Hungary. Invitel is the incumbent operator in 14 out of 54 primary service areas, where it has a stable cash generative core telephony business. In the rest of Hungary, which represents a significant growth opportunity following the liberalisation of the telecom market, Invitel is an alternative telecom operator with a national backbone, metropolitan networks and point-to-multi-point access system.

Forward Looking Statements

This press release contains information that is forward looking information with respect to Espial within the meaning of Section 138.4(9) of the Ontario Securities Act (forward looking statements) and other applicable securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or the negative of theses terms or other similar expressions concerning matters that are not historical facts.

Forward-looking information is based on certain factors and assumptions. While the company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking information, by its nature necessarily involves risks and uncertainties, including the parti ability to consummate the transaction, the conditions to the completion of the transaction, including the receipt of shareholder approval or the regulatory approvals required for the transaction may not be obtained on the terms expected or on the anticipated schedule. Additional risks and uncertainties affecting Espial can be found in Espial's Annual Report for the fiscal year ended December 31, 2007 and in its most recent quarterly report filed on SEDAR at www.sedar.com, and as may be set out in Espial's management proxy circular in respect of the proposed transaction to be made available, once filed, on SEDAR at www.sedar.com. If any of these risks or uncertainties were to materialize, or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein. Espial assumes no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

Inquiries from financial press or analysts:

Kirk Edwardson

Director, Marketing

Espial Group Inc.

Email: kedwardson@espial.com

Phone: +1-613-230-4770 x1145