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TVN Entertainment Enters Into New Agreement With Disney’s Buena Vista Video-On-Demand To License Films For VOD

Distribution Includes TVN’s Cable, Telco, and IPTV Affiliates

Burbank, California – February 27, 2007 - TVN Entertainment Corp., the leading on-demand company, announced today that it has entered into a new agreement with Disney’s Buena Vista Video-On-Demand (VOD) to license the company’s movie titles for video-on-demand distribution. TVN previously has offered Disney films for Pay-Per-View.

Under terms of the agreement, Disney’s Buena Vista Video-On-Demand will make available from the Walt Disney Studios new release, direct-to-video, and library films to TVN affiliates for unlimited viewing over a 72-hour period – three times as long as the traditional 24-hour viewing period for VOD.

“VOD customers have been anxiously awaiting movies from Disney,” said Doug Sylvester, chief operating officer of TVN Entertainment. “We are very excited that Disney’s Buena Vista Video-On-Demand has now made the commitment to broadly offer its rich collection of studio titles to the growing VOD market.”

Disney’s Buena Vista Video-On-Demand gains access to TVN’s extensive roster of affiliates that includes many medium and small sized cable companies, as well as its growing number of telco partners. The agreement also allows Disney to utilize TVN's ADONISS 2.0 (A2) asset management system, which provides unparalleled management control of VOD assets. A2 will enable its customers to manage and customize VOD marketing campaigns on a national, regional, or local market basis.

About TVN Entertainment Corporation

TVN Entertainment Corporation, the leading television on-demand company, works with every major studio, network, and telecommunications video provider in North America. TVN is the preferred provider of original on-demand programs and networks. TVN supports an open, advanced technology platform, and offers the most comprehensive, end-to-end solution for licensing, managing, distributing and marketing on-demand content to virtually any platform.

About Disney’s Buena Vista VOD

Disney’s Buena Vista Video-On-Demand is a leading distributor of movies in the Video-On-Demand arena. BVVOD distributes movies domestically from the Walt Disney Company, including titles from Touchstone Pictures, Hollywood Pictures, and Miramax Films. It currently licenses movies through a wide range of distributors and platforms including cable MSOs, satellite companies, internet distributors, telecos, mobile operators, and via other emerging technologies.