Liberate Technologies Launches $50 Million Corporate Venture Fund to Accelerate the Growth of Interactive Television.

Liberate Corporate Venture Fund to Invest Capital in Promising,

Pre-IPO Interactive TV Market Players

Two Way TV Receives First Official Investment of up to Seven Million Dollars

SAN CARLOS, Calif., Nov. 28 /PRNewswire/ --

Solidifying its leadership position in the interactive television market, Liberate Technologies (Nasdaq: LBRT) today launched the Liberate Corporate Venture Fund, a $50 million fund dedicated to accelerating the development of interactive television as a whole. The Liberate Corporate Venture Fund will capitalize on the company's expertise and reputation in the iTV industry to identify and spur the growth of promising companies. To launch the fund, Liberate announced that Two Way TV will receive a seven million dollar investment.

(Photo: http://www.newscom.com/cgi-bin/prnh/19990630/LIBERATE )

The creation and development of the fund has been bolstered by a series of recent and successful investments by Liberate in other promising iTV leaders, including ICE Interactive Ltd., Diva Systems Corporation and Everypath, Inc. The fund is further strengthened by Liberate's investment in Two Way TV, a leader in interactive gaming and enhanced TV applications that allow viewers to participate in game shows and sporting events. This investment builds on Liberate's existing relationship with Two Way TV whose games service offerings are integrated onto the Liberate software platform. Liberate network operators, including NTL and Telewest, have integrated Two Way TV's gaming features into their respective iTV offerings.

"In creating the Liberate Corporate Venture Fund, we are building on our momentum as the leader in the interactive TV market," said Mitchell Kertzman, president and CEO of Liberate Technologies. "We have the proven know-how to identify all of the critical technologies and companies that will propel interactive television into the mainstream."

Simon Cornwell, Two Way TV Chief Executive, said: "The universal appeal of playing games is at the heart of what we do. Games are already proving their ability to lead consumer understanding and take-up of interactive services on digital television. As these services increase in sophistication, we need to have close links with those who make-up the interactive broadcast infrastructure. Liberate, who we already know really well, is a key piece of the puzzle. Equally we value Liberate's endorsement of our consumer offering with this significant investment."

Liberate will take minority equity stakes in developing, privately held companies that are in the mid to late stages of financing, have exceptional management teams with proven records, and have developed proven technology. Liberate will co-invest with top-tier venture capital funds and in most cases, will not seek to retain a seat on a company's Board of Directors. The size of the investment will generally run between 15 to 25% of any given financing event. The Liberate Corporate Venture Fund will operate as a business group within Liberate.

In addition to identifying and investing in key iTV players, Liberate will enter into a strategic relationship with each company. Specifically, Liberate will work closely to further develop and integrate the iTV applications and technologies with Liberate's platform/technologies/products and guide and participate in co-marketing activities, including joint press releases and joint trade show participation.

Liberate has established a proven record of success with leading cable, telecommunications, satellite and Internet service provider companies. Standards-based, the Liberate TV Platform provides enhanced TV capabilities that offer maximum flexibility, letting network operators select from a broad range of not only content and applications, but the types of devices to which they are delivered. As a leading Internet-based platform for interactive television, Liberate continues to drive open standards.

About Two Way TV

www.twowaytv.com

Two Way TV is a channel of interactive games designed for the television. These include arcade games, trivia challenges, word puzzles and observational games that are changed every day. Popular television shows such as the BBC's A Question of Sport and Mastermind and Channel 4's Fifteen to One and The Crystal Maze are also joining the channel as interactive games. People spend just over an hour with the channel each time they play giving Two Way TV a four percent daily reach. In the UK the Two Way TV channel is available to NTL and Telewest digital cable subscribers. From January it will be on digital terrestrial broadcaster ONdigital. In the US and Canada there is Twin Entertainment, a joint venture with Interactive Network Inc. Two Way TV Australia runs on the Austar satellite service. Two Way TV started in 1992 and backers include NTL and The Hilton Group. Further details about our financial, technological and content partners are contained on our website. The Two Way TV Stylised Word Mark is a pending trade mark registration of Two Way TV Ltd. All other trade marks are the property of their respective owners.

About Liberate Technologies

Liberate Technologies is a leading provider of a complete software platform for delivering Internet-enhanced content and applications to information appliances, such as television set-top boxes and game consoles. Liberate's Internet-based client and server software allows network operators to provide consumers access to network operator-branded applications and services. Headquartered in San Carlos, California, the company has sales offices in the U.S., Canada, Japan and the U.K.

Liberate, Liberate TV Platform, and the Liberate logo are trademarks of Liberate Technologies. All other trademarks are the property of their respective owners.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: Information in this release that involves the companies' expectations, beliefs, hopes, plans, intentions or strategies regarding the future are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to the companies as of the date of the release, and we assume no obligation to update any such forward-looking statement. These statements are not guarantees of future performance, and actual results could differ materially from our current expectations. Liberate's filings with the Securities and Exchange Commission ("SEC") (including its Form 10-Q filed on October 12, 2000) discuss factors that could contribute to such differences and describe other risks of Liberate's business.

Contacts:

Tom Neumayr Rebecca Smith

Liberate Technologies Brodeur for Liberate

650-701-4065 617-587-2060

650-787-5571 617-686-0703

tneumayr@liberate.com rsmith@brodeur.com