Princeton Video Image Launches First In-Program, Individualized, Interactive Streaming Video Solution

Lawrenceville, NJ and San Jose, CA/ Real Conference 2000 (May 24, 2000) –
Princeton Video Image, Inc. (Nasdaq: PVII), the global leader in virtual
advertising and image insertion solutions for television, today announced
the introduction of iPoint™, a new Internet product. iPoint™ will insert
interactive and individualized virtual enhancements and advertising images
inside streaming video, marking the first time that this capability will be
available to the public.

PVI also announced agreements with RealNetworks, Inc., (Nasdaq: RNWK) to
make iPoint™ available to RealPlayer® users and with Engage, Inc. (Nasdaq:
ENGA), who will provide content, server technology and sales and marketing
expertise. With these agreements in place, the parties plan for this
technology to be commercially available to the current 115 million
RealPlayers® unique registered users as soon as the end of this calendar
year.

The iPoint™ product will allow the end user to interact with virtual or
existing objects embedded in the video stream. The images will range from
signage to virtual product placement and will supply the viewer with
information, e-commerce opportunities and program enhancements inside the
video program. Virtual images can appear in both live and pre-recorded
streaming video. PVI developed iPoint™ to complement its existing broadcast
television technology, providing Internet broadcasters with a powerful tool
to create new revenue opportunities, while providing viewers with
selectable, personal program enhancements. PVI is demonstrating iPoint™
technology in Booth 430 at RealNetworks Conference 2000 in San Jose, CA, May
24-26.

“We’re thrilled to bring our virtual insertion technology to streaming
media,” said Dennis Wilkinson, CEO and president of PVI. “iPoint™’s
in-program interactive ads and images enhance the advertiser supported
business model prevalent on the Internet. Going forward, iPoint™ will play a
key role in shaping the future of interactive streaming media applications
on the Internet and in interactive television.”

Through iPoint™, a viewer will be able to interact with personalized
advertisements or program enhancements that are seen inside the video
stream. For instance, an iPoint™ enhanced baseball game will enable a viewer
to select such virtual enhancements such as “clickable” player stats or a
virtual strike zone. An entertainment program could include interactive
objects or virtual products providing the user instant pricing or detailed
information without leaving the program. Additionally, sports fans will be
able to interact with existing and virtually inserted stadium signage during
broadcasts of their favorite sporting events. By choosing the individualized
virtual image, each user would be able to interact and do things such as
order a pizza from their desired pizza restaurant.

“This will ultimately change the face of advertising,” said Wilkinson.
“Viewers will be telling the advertisers what they want and advertisers will
be marketing to an interested audience. Viewers can request information,
make purchases or enjoy program enhancements without missing any of the
action.”

The agreements with RealNetworks and Engage allows iPoint™ to be integrated
into the existing streaming media and Internet advertising infrastructures
familiar to Web broadcasters and end users.