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SmallCaps Online LLC Reiterates BUY on ACTV

Following Increased Investment by Liberty Media Group

Please Visit SmallCaps' Web Site at www.SmallCapsOnline.com for Detailed Report

New York, NY, April 14, 1999 -- SmallCaps Online LLC today published comments on ACTV's (Nasdaq: IATV) announcement that Liberty Media Group (NYSE: LMGa and LMGb) had increased its investment in ACTV and received options to purchase additional shares in ACTV over the next five years. The full text of this report can be accessed at SmallCaps' web site, at www.SmallCapsOnline.com.

Excerpts from the SmallCaps report follow:

ACTV and Liberty Media Group (NYSE: LMGa and LMGb) announced yesterday that the parties had reached an agreement whereby Liberty will invest an additional $9 million in ACTV (through the exercise of previously existing options and the purchase of new shares), and Liberty will receive options to purchase additional interests in ACTV over the next one-to-five years. If fully exercised, these investments will total more than $100 million and Liberty could end up owning approximately 25% of ACTV. We believe this expanded investment reflects Liberty's commitment to the commercialization of the HyperTV and Individualized Television technologies, and ensures that ACTV's patented interactive applications will be integrated into the vast operations in which Liberty has an ownership interest. We reiterate our BUY recommendation.

As part of this transaction, Liberty Media receives a series of options that allows them to make additional equity investments over the next five years. Exercise of the options over the next 24 months would result in investments of approximately $50 million. Liberty must exercise each option sequentially, or the remaining options expire.

Positive aspects of the new ACTV/Liberty Media Partnership

• Gives ACTV Strong Financing Plan: This agreement, together with the calling of outstanding warrants, has resulted in an inflow of approximately $18 million to ACTV this month. This will enable ACTV to accelerate the build-out of the HyperTV network, as well as invest in additional Individualized Television regional programming facilities (similar to the ACTV facilities in the FOX Sports SouthWest region). The series of options greatly enhances ACTV's financing flexibility.
• Liberty Media — Follow the "Smart Money": With the possibility of becoming a 25% ACTV owner, we believe Liberty Media evolves from simply a minority investor to a "real" partner, with a strong incentive to maximize ACTV shareholder value. We view this agreement as validation of ACTV's technology and strategy and reflective of Liberty's confidence in the ACTV management and technical teams. Liberty Media has a very well established track record for investing in winners, and growing shareholder value; invest alongside the "smart money."
• Liberty Digital — Raises ACTV's Internet Profile: Investors should note that Liberty's holdings in ACTV securities are contemplated to be included in Liberty Media's proposed exchange of assets with TCI Music Inc. (Nasdaq: TUNE). As part of this asset swap, Liberty Media intends to contribute all of its directly owned Internet and interactive television assets to TUNE in exchange for an expanded interest in TUNE, which would be renamed Liberty Digital, Inc. In addition to the ACTV interests, Liberty Media will contribute its interests in priceline.com (Nasdaq: PCLN), iVillage (Nasdaq: IVIL), Sportlines USA and drugstore.com. This should give ACTV tremendous visibility and marketing opportunities among leading Internet companies..

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SmallCaps Online LLC is a registered investment advisor focused on identifying emerging growth companies in the healthcare and information technology sectors that offer compelling investment opportunities over the long term. By providing comprehensive financial services, including corporate finance, M&A advisory, strategic partnering and communications consulting, the company positions itself to provide a fully integrated package of value-added services to emerging growth companies.

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The information in this press release has been obtained from sources that SmallCaps Online LLC believes to be reliable, but the Company does not guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation by SmallCaps Online LLC for the purchase or sale of any securities. SmallCaps Online LLC has performed investment banking, consulting or other services for or may solicit investment banking, consulting or other business from, ACTV. SmallCaps Online LLC or persons associated with SmallCaps Online LLC may at anytime be long or short any of the securities referred to herein and may make purchases or sales thereof while the Company's reports are in circulation or posted on the SmallCaps Online LLC web site at www.SmallCapsOnline.com. This material, or any portion thereof, may not be reproduced without prior permission from SmallCaps Online LLC. SmallCaps Online LLC is not responsible for the contents of this document that is intended for electronic transmission and could be thus subjected to tampering or alteration. Copyright 1999 by SmallCaps Online LLC. All rights reserved.