Excerpts from the report follow:

Summary: ACTV, Inc. and Scientific-Atlanta, Inc. announced today that an agreement had been reached whereby ACTV digital programming technology would be available on SA's Explorer( 2000 advanced digital set-top boxes. We believe this is a very significant corporate milestone for ACTV, as it represents validation of ACTV's technology by a second leading producer of digital set-top cable boxes (ACTV has an agreement with General Instrument, the other major manufacturer), and ensures access to ACTV software technology in virtually the entire US cable subscriber base. We reiterate our BUY recommendation on ACTV common stock by investors tolerant of the risks associated with micro-cap and small-cap equity investments.

Digital Set-top Box Market in the US: SA and General Instrument ("GI"), with which ACTV already has a similar agreement, currently represent 100% of the US digital set-top box market. Although we expect others to eventually offer digital set-top boxes, we believe SA and GI will dominate the market for the foreseeable future. SA has received purchase orders or commitments for the Explorer 2000 product from 14 cable operators representing more than 16 million cable subscribers, including TimeWarner, Cox, Comcast, Aldephia, Rogers and Videotron. SA is aggressively marketing its Explorer 2000 digital boxes, and we refer the reader to SA's corporate website at www.SciAtl.com for a series of recent announcements pertaining to deployment of the Explorer 2000.

ACTV/SA Agreement: SA has established the CreativEdge( program to encourage third-parties to develop applications that work on the Explorer platform. ACTV engineers will work with SA staff to port the ACTV software technology to the Explorer platform. ACTV's patented programming technology will be integrated into the Explorer platform, and will be made available both on new installations of the Explorer 2000, and be downloadable to the Explorer 2000 installed base.

ACTV Background: ACTV, Inc. ("ACTV") is developing innovative, patented software technology, and managing relationships with leading programming and distribution entities, that we feel position the Company to capitalize on the opportunities arising from the convergence of the Internet and digital cable TV -- the broadband cable infrastructure. The first application of Individualized Television is the sports entertainment market, and the first application of HyperTV is the on-line education market. As the cable operators deploy the next generation of digital cable boxes throughout their networks, the Internet and broadband cable infrastructures will converge, as will the potential applications of ACTV's technologies. We believe the potential applications for Individualized Television and HyperTV are very broad, and include interactive advertising, electronic commerce and a host of enhanced, interactive entertainment programming.