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TVN Entertainment Will Invest $28 Million In Future Of TV Video On Demand

World’s Leading On Demand Company Significantly Ramps Up R&D, Capacity, and Facilities to Support Fast Growing Advanced Services

Burbank, California, May 20, 2008 - TVN Entertainment Corp., the world’s largest television on demand company, today announced it will be investing $28 million this year in infrastructure, technology, and business processes to support its advanced suite of file-based delivery services. The new investment plan allows TVN to significantly expand its research and development activities and increase storage and distribution capacity.

To support the growing needs of distributors and content providers, TVN’s research and development activities continue to focus on advanced interactive services. The company’s recent introduction of an interactive VOD management tool allows programmers to make menu changes and update metadata fields, such as price and end-dates, based on actual consumption patterns. The company has taken a lead in facilitating interactive advertising by supporting networks and operators during ongoing VOD advertising trials and enhancements to allow nearly immediate turnaround of live content; future R&D plans will expand advertising applications and build upon early successes in the broadband and mobile platforms.

TVN currently manages over 8,300 hours of VOD content each month, up almost 50% from this time last year. To support this rapid growth, TVN recently brought online an additional 40 terabytes of near-line storage to inventory over 23,500 hours of new VOD content. TVN has also added a third transponder to support distribution of multiple on-demand formats including MPEG4, and a dramatic increase in HD VOD content packages.

In order to accommodate the growth of the company and its services, this month TVN relocates its headquarters to a new 30,000 square foot state-of-the-art facility, doubling its current space. The company also anticipates expanding its staff to support these investment initiatives.

“The VOD market continues to reward innovation and enhanced capabilities for file-based delivery services,” said Doug Sylvester, chief operating officer of TVN Entertainment. “We see exciting opportunities to create, acquire, and invest in the sophisticated tools and services that our distributors and content providers have come to expect from TVN.”

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.