Encoda Commits to TVB Standards for EDI

FOR IMMEDIATE RELEASE

DENVER — July 22, 2002 —Encoda Systems, Inc. today announced its commitment to implementing the newly created Television Bureau of Advertising (TVB) Standards for EDI in its products and promoting those standards within the industry. The new TVB standards establish automated business processes, rules and formats for the exchange of data between buyers (agency, rep) and sellers (station, rep) in the spot television marketplace. These standards will reduce the costs of exchanging, maintaining, and communicating data for avails, orders, offers, copy instructions, invoices, and discrepancies. More significantly, the ability to increase the speed and volume of business handled by business systems implementing these standards will increase productivity for all participants.

“In working with the TVB, we have made great strides in the conceptualization and definition of industry standards and look forward to continuing efforts that will turn these concepts into deliverable functionality for our valued clients and the entire industry,” said Encoda Systems CEO Don Doctor. “This milestone in the creation of industry standards results from the dedication and collaboration of countless parties to define a standard for the invoicing transaction set.”

In the first phase of developing standards-based applications, Encoda will implement the TVB invoice standard in Spotdata, the industry’s leading Webbased e-Business portal, in the fourth quarter of 2002. The new features will allow any agency system that supports the TVB invoice standard to receive electronic invoices from more than 900+ TV stations that currently deliver invoices via Spotdata. The new Media Buying module of the Encoda Agency Suite for advertising agencies will also support the TVB invoice standard and will be available first quarter of 2003.

Future development efforts will focus on the complex transactions of the order process for buying and selling media. Encoda has dedicated substantial intellectual, financial, and strategic resources to designing and building systems capable of delivering these functionalities. A critical requirement in the successful creation of these standards-based applications will be the further definition of business workflow related to the order process. Such efforts will require further collaboration with the TVB EDI committees and other vendors to define communication rules and a messaging framework for intersystem data transfer. These accomplishments will enable Encoda to implement additional TVB standards throughout its solutions for the spot television marketplace.

Finally, a critical element in the successful adoption of industry standards will be an industry-endorsed certification process for the implementation of standardsbased applications. This will ensure that the industry moves in lock-step towards a standards-compliant environment that will enable faster and more effective deployment of standards-based systems and functionality.

“We look forward to working with our valued clients and the TVB to develop these critical elements in the further completion of industry standards and related applications,” said Bob Duncan, president of Encoda’s Media Management Solutions Division.

Encoda Systems, Inc. provides comprehensive technology solutions for electronic media markets (broadcast television, cable, DBS, radio, streaming media, advertising agencies, media buyers, and national sales reps). Encoda Systems offers one of the most complete arrays of business systems and automated delivery systems and services in the world. The Company has offices in Colorado, New York, New Jersey, Tennessee, Michigan, Canada, the United Kingdom, France, Hong Kong, and Australia. Encoda Systems is privately held with funding from a group including LiveWire Media, Thomas H. Lee Company, the Blackstone Group, Evercore Partners, and Spire Capital Partners. Additional information is available at www.encodasystems.com.