Subject: First Virtual Corporation / ICAST press release

From: Brian Smithson <[email-masked]>
Date: Fri, 31 Jul 1998 14:47:22 -0700

FOR IMMEDIATE RELEASE 

    CONTACT:

    First Virtual Corporation
    Elyse Phillips, 408/567-7230
    [email-masked] 

     FIRST VIRTUAL CORPORATION AGREES TO ACQUIRE INTERNET
  BROADCAST COMPANY; ANNOUNCES COMPANY NAME CHANGE TO FVC.COM 

SANTA CLARA, Calif., July 30, 1998-- First Virtual Corporation (Nasdaq:
FVCX), a leading provider of Next Generation Internet (NGI) video
applications, today announced the signing of an agreement to acquire ICAST
Corporation, a developer of Internet Protocol (IP) voice and video
broadcast solutions. With this acquisition, First Virtual will be able to
deliver video broadcast products to the 100 million Internet-equipped PCs
worldwide. ICAST co-founder and president Vinay Kumar will head up
streaming and broadcast programs for First Virtual Corporation. Mr. Kumar
is a pioneer of Internet technology, having lead the team that  architected
the delivery of multimedia over the Internet, known as the MBone. 

Concurrently, First Virtual Corporation announced that it will change its
name to FVC.COM to more accurately reflect the company's role in developing
NGI and Internet applications for interactive, broadcast-quality video. 

According to FVC.COM Chief Executive Officer Ralph Ungermann, the
technologies developed by ICAST are complementary to FVC.COM's existing
product portfolio. "Our focus has been on providing end-to-end solutions
for the new broadband Next Generation Internet. ICAST's line of broadcast
solutions for today's Internet brings video streaming to web-enabled PCs
worldwide. As a result, FVC.COM will be the only one-stop provider of
managed video solutions for high-end through low bit-rate video
applications," said Ungermann. 

FVC.COM invites Internet users to visit WWW.FVC.COM to view a video clip of
senior management discussing the acquisition. Visitors can view the clip
using the ICAST Viewer product which is also available on this page. 

"One of the fastest growing areas of the Internet is in video and audio
broadcast," said Ungermann. "We are committed to providing our customers
with a full range of the best technologies and products, whether through
in-house development or strategic acquisitions." 

"The combination of ICAST and FVC.COM products is expected to produce the
most complete voice, video and data solution across the Internet spectrum,"
said Vinay Kumar, president and Chief Technical Officer, ICAST Corporation.
"This combined product offering will enhance the way businesses,
government, and education providers meet and exchange ideas and information." 

ICAST's IP multicasting solutions enable large-scale delivery of voice,
video and text from one sender to many recipients, or from many senders to
many recipients. ICAST's multicasting model leverages advances in router
technologies from companies such as Cisco (NASDAQ:CSCO) and Bay Networks
(NYSE:BAY), and is compatible with other steaming media technologies from
Microsoft (NASDAQ:MSFT) and Real Networks (NASDAQ:RNWK). 
FVC.COM's current product suite includes high-quality MPEG-1 and MPEG-2
video products. The combination of these high-end solutions with ICAST's
low bit-rate solutions will provide the most comprehensive end-to-end video
solutions available on the market today. 

The purchase, valued at approximately $8 million, of the privately held
Los Gatos, California-based company will be made with a combination of
FVC.COM common stock and assumption of debt; other terms were not
disclosed. The acquisition of ICAST is expected to close in August. The
Company also announced that it expects that the transaction will be
accretive to its earnings in 1999. 

About The Next Generation Internet (NGI)
The Next Generation Internet (NGI) is the new broadband Internet, being
deployed by service providers and enterprises for the integrated delivery
of voice, video and data applications. A key characteristic of the NGI
(http://www.ngi.gov) is the ability to handle multimedia applications such
as real-time interactive video, as well as stored and live video-on-demand.
FVC.COM combines its expertise in Internet tools, Quality of Service (QoS),
and video technology to deliver networked video over the NGI for key video
applications such as distance learning, telemedicine, video marketing and
video manufacturing. 

About FVC.COM 
FVC.COM is the leader in video applications over the Next Generation
Internet (NGI). FVC.COM's products enable end-to-end video in a wide range
of room and desktop environments for video applications such as distance
learning, distance meetings, and distance medicine. Founded in 1993 by
technology pioneer Ralph Ungermann, FVC.COM designs, manufactures and
supports a full video networking product family that includes NGI access
devices, adapters, gateways and video storage servers, all of which support
the company's award-winning MOS software. 

FVC.COM's distribution and system integration partners include leading
telecommunication and networking companies throughout the world, such as
Ascend Communications (NASDAQ:ASND), Bay Networks (NYSE:BAY), Bell Atlantic
Network Integration (NYSE:BEL), British Telecom (NYSE:BTY), EDS (NYSE:EDS),
IBM (NYSE:IBM), Lucent Technologies (NYSE:LU), NEC (NASDAQ:NIPNY), and
Nortel (NYSE:NT). 

Cautionary Statement
Except for the historical information contained herein, this news release
contains forward-looking statements, including, without limitation,
statements containing the words, "believes," "anticipates," "expects" and
words of similar import. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of FVC.COM, or industry results, to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such factors
include, among others: the risk that the acquisition will not be
consummated on schedule, or at all, the risk that the integration of
FVC.COM's and ICAST's respective business operations is not achieved in a
timely and expected manner, or that key personnel of ICAST are not
successfully retained, FVC.COM'slimited operating history and variability
of operating results, market acceptance of video technology, dependence on
ATM backbone technology and the Next Generation Internet, potential
inability to maintain business relationships with distributors and
suppliers, rapid technological changes, competition in the video networking
industry, the importance of attracting and retaining personnel, management
of FVC.COM's growth, consolidation and cost pressures in the video
networking industry, dependence on key employees and other risk factors
referenced in the Company's Registration Statement on Form S-1, File No.
333- 38755, declared effective on April 29, 1998. 

--
- Brian Smithson                                 [email-masked]
  ICAST Corporation                             +1 408 874 0707
  101-C Albright Way                     FAX +1 408 874 0710
  Los Gatos, CA 95030                   http://www.icast.com