Press Release

07/21/2004

USDTV JOINS FORCES WITH LG ELECTRONICS TO DELIVER LATEST "OVER-THE-AIR" DIGITAL RECEPTION TECHNOLOGY

USDTV Becomes First U.S. Company to Use Fifth-Generation 8-VSB Technology for Improved Reception in Urban and Rural Environments

USDTV Becomes First U.S. Company to Use Fifth-Generation 8-VSB Technology for Improved Reception in Urban and Rural Environments

SALT LAKE CITY, July 20, 2004 -- U.S. Digital Television, Inc. (USDTV), a leading over-the-air subscription TV service, today announced a technology partnership with LG Electronics and LG Innotek to supply fifth-generation 8-VSB chips and ATSC tuners for use in USDTV's set-top boxes.

LG�s advanced digital television (DTV) reception technology, developed and tested with its U.S. subsidiary, Zenith, is designed to significantly enhance terrestrial broadcast digital reception capacity and strengthen viewing potential in difficult reception areas, such as in apartments and urban areas. USDTV will begin to include the LG components in set-top-boxes planned for shipments beginning in Q4 of 2004.

"LG's chip advances will make over-the-air digital TV reception easier for millions of viewers, and this is a critical milestone for our company and our broadcast partners," said Steve Lindsley, Chairman and Chief Executive Officer of U.S. Digital Television, Inc. "The continued evolution of reception technology, coupled with tremendous improvements in compression and storage, will help broadcasters compete for pay-TV revenues well into the future."

"USDTV will be the first broadcast service company in the U.S. to benefit from our advanced digital reception technology," said Young-Ho Hur, Chief Executive Officer of LG Innotek. "We expect ever greater demand for this unique chip-set that will enable subscribers to enjoy the full benefits of high-definition and digital TV viewing, in addition to extending broadcast service areas."

USDTV field test data have shown significant improvement in reception performance over previous generations thanks in part to latest-generation dynamic equalizer technology. The fifth-generation, 8-VSB reception technology can be further enhanced through USDTV's previously announced digital antenna being produced with Dotcast and Winegard Company.

"We have tested the viability of 8-VSB DTV demodulation technology for years and are pleased by the substantial reception improvements in LG�s new fifth-generation chips," said Nat Ostroff, Vice President, New Technology, Sinclair Broadcast Group. "The incorporation of this technology into the USDTV service will be a great benefit to both broadcasters and consumers, especially those in urban, hilly or indoor reception environments."

When combined with the LG DTV technology, USDTV service areas will be expanded and many difficult reception areas mitigated, creating greater subscriber potential in each market. "Independent tests on the performance of this fifth-generation technology have exhibited large improvements in difficult urban multipath conditions over previous generations," said Victor Tawil, Senior Vice President of the Association for Maximum Service Television (MSTV).

USDTV's service is priced under $20 per month and broadcasts many of the most popular cable networks "over-the-air" in digital and high-definition formats utilizing broadcast partners' unused digital spectrum. USDTV currently operates in Salt Lake City, Albuquerque and Las Vegas.

USDTV has created a new category in the broadcasting industry by offering the first digital terrestrial pay-TV service in the U.S. The company has also introduced a new use for excess digital spectrum and, in leasing it, created a subscription revenue stream for broadcasters. The USDTV service is broadcasted in tandem with local TV channels to subscribers' homes "over-the-air" through standard VHF/UHF antennas.

USDTV's primary national distribution partner, Wal-Mart, has begun offering an "off-air" HD tuner, supplied by USDTV under the brand name USDIGITAL™, in over 3,000 stores nationwide and over its Internet site at www.walmart.com. These HD tuners are USDTV Ready� and receive all the new digital and HDTV channels being broadcast by local TV stations. As USDTV's service becomes available in each market, customers can activate the service through a phone call to the USDTV call center.

About USDTV: U.S. Digital Television, Inc. is the first "over-the-air" terrestrial digital subscription TV service in the United States, offering a low-cost alternative to expensive cable and satellite. USDTV subscriber services provide customers with many of cable's most popular networks plus all of their local channels in digital-quality picture and theater-quality sound, including HDTV. The company is headquartered in Salt Lake City, Utah. www.usdtv.com

About LG Electronics: LG Electronics (www.lgusa.com) is a major global force in electronics and information & communications products with more than 64,000 employees working in 76 overseas subsidiaries around the world. HDTV is a key element of LG Electronics' goal to enable the intelligent networking of digital products that will make consumers' lives better. LG Innotek (www.lginnotek.com), a sister company of LG Electronics, is a leading worldwide supplier of digital components, including DTV tuners. LG Electronics subsidiary Zenith (www.zenith.com) is a long-time U.S. consumer electronics leader and primary developer of the DTV transmission standard adopted by the FCC. Zenith merged with LG Electronics in'99.

USDTV a better way to TV.

MEDIA CONTACTS

Troy McCombs
Coltrin & Associates for USDTV
(212) 221-1616
Troy_McCombs@coltrin.com

David Olsen
Coltrin & Associates for USDTV
(212) 221-1616
David_Olsen@coltrin.com

John Taylor
LG Electronics
(847) 941-8181
john.taylor@lge.com

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