American Interactive Media Announces Marketing, Technology, and Production Agreement with Zilog Inc.

Partnership Paves Way for Next Generation of Internet Service with the Bundling of Hardware, Software and Service Charging Only a Flat Monthly Fee

According to the terms of the agreement, Zilog Inc. -- a $300 million company -- will supply the set-top appliance and AIM will provide the service, known as the WebPASSPORT(TM) Network. With the official launch of the service scheduled for August 1, AIM has placed a non-cancelable purchase order with Zilog.

Zilog will also sell the appliance to its wide customer base of TV manufacturers and telecommunications companies while, at the same time, offering AIM's WebPASSPORT Network with all their hardware.

AIM, the driving technological force in the project, has collaborated with Zilog on the design of the appliance -- which is based on MSU Corporation's Slipstream(TM) technology -- and will provide engineering support. The newly created WebPASSPORT Network, which uses its own software and Internet browser, makes "push technology" available to television viewers. Every television household in America and throughout the world, who subscribes to the WebPASSPORT Network, can gain access to the Internet, exchange e-mail, and create their own personal TV channel that delivers "on demand" the digital information and entertainment the subscriber selects to receive.

"Since Zilog is a leader in television controllers and works with all TV manufacturers, I cannot think of a better partner to be teamed with when we launch the WebPASSPORT Network on August 1," said Peter Yunich, AIM's CEO and veteran technology entrepreneur. "This alliance will make us an entertainment leader both today and in the future."

"AIM is one of the most knowledgeable companies in this industry -- from both a creative and technological standpoint," said Dr. Edgar Sack, Zilog Chairman of the Board, CEO and President. "We share a common vision of bringing a new dimension to the Internet experience to living rooms nationwide, which makes AIM an ideal partner."

The AIM/Zilog appliance provides ease of use, excellent picture quality and flicker-free video images. Some of its features include a color-coded remote control, on-board printer port and 33.6 modem. In addition, it allows for multiple accounts (up to six per household), parental control and secure transactions.

Unlike some other set-top products available, consumers will not have to purchase hardware (which can cost up to $400) up-front. Using the cable television example as a business model, AIM is giving customers the unit when they sign up for service at the low monthly fee of $29.95 -- which includes unlimited Internet access and a free subscription to the WebPASSPORT Network, making the Internet experience affordable for everyone.

Beginning with the CES Comdex show in Atlanta June 2-5 where Zilog and AIM will jointly exhibit the appliance and the WebPASSPORT Network at Booth N1840, both companies will initiate a national and international effort targeting the television and telecommunications manufacturing industries.

American Interactive Media develops and markets Internet access hardware and software products optimized for television viewing, targeting market segments that include Internet Service Providers, telecommunications companies, cable companies, utilities, consumer electronic companies, content providers and affinity groups. AIM's Network Services will be distributed through all digital media platforms, including Internet, cable, PC, DSS, wireless, broadcast and DVD.

Zilog is an innovator in the development, design and manufacturing of application-specific standard products (ASSPs) for the data communication, peripherals and consumer product markets. The company utilizes its Superintegration(TM) design methodology to combine cores and cells from the company's extensive library of customer-familiar microprocessors, microcontrollers, memory and logic circuits to meet the design, cost and time- to-market requirements of its customers.