PATHFIRE AND BT DEEPEN RELATIONSHIP TO ENABLE EUROPEAN VIDEO FILE TRANSFER SERVICE

ATLANTA, GA, December 13, 2004 - Pathfire, the leading supplier of digital content distribution and management solutions for the media and entertainment industries, announced today an agreement with BT Broadcast Services, the media solutions arm of BT (British Telecommunications). The deal will enable a store-and-forward video delivery service to locations within the European Union. The service, operated by BT and powered by Pathfire technology, will be branded BT Mediarelay.

The alliance will offer a fast, secure, easy-to-use, and cost-effective alternative to distributing broadcast content via videotapes or by linear satellite services. Using Pathfire's Digital Media GatewayTM (DMG) technology, BT will deliver video content directly to television newsrooms and programming desktops for integration into local broadcasts. Pathfire's DMG, an automated IP multicast distribution platform, already distributes and manages content to over 1,200 broadcast stations in the US and Canada. The DMG technology is currently utilized for delivery of news clips, advertisements, and syndicated television shows.

By combining BT Broadcast Service's robust global networking capabilities with Pathfire's innovative and widely deployed DMG distribution and management technology, BT Mediarelay is expected to revolutionize content delivery within the European Union.
Leveraging their previous relationship for transatlantic distribution of video content, Pathfire and BT are able to provide a foundation for new commercial and production opportunities throughout the television, film and advertising industries in the European Union.

Brad Ferris, VP Business Development at Pathfire, added. "Our partnership with BT brings the proven attributes of store-and-forward distribution already seen in North America into Europe. We are excited to expand upon our existing relationship with BT and anticipate that this partnership will generate value for Pathfire's existing customers as well as BT's."

Pathfire

Pathfire (www.pathfire.com), headquartered in Atlanta, is the leading provider of digital content distribution and management solutions for the broadcast television industry, supplying innovative digital solutions, from distribution to air, for broadcasters, news organizations, television networks, Hollywood studios and other media companies. Through its advanced digital IP store-and-forward platform, Pathfire delivers news stories, syndicated programming, commercial spots, public service announcements and video news releases to more than 1,100 broadcasters throughout North America.

BT Broadcast Services

BT Broadcast Services (BTBS) is the media and satellite services arm of BT, which designs, develops and manages global broadcast, content management and communications systems. Its international customer base includes broadcasters, content owners and distributors, large corporations and government organizations throughout the world.

BTBS provides bespoke satellite and fiber-based solutions, some of which utilize sophisticated digital content and data management technology, to transport and manage video, audio and data. Delivering live broadcasts from major international events, providing digital terrestrial TV (DTTV) networks and direct to home (DTH) satellite platforms, storing and securely distributing video content to broadband devices, enabling retail digital signage and designing and managing major corporate communications infrastructures are just some of the areas in which BTBS excels. An industry pioneer, BTBS aims to deliver the highest quality of service, flexibility and efficiency through advanced technology and industry expertise.

BTBS is part of BT Global Services. BT Global Services provides IT and networking services internationally to meet the needs of multi-site organisations with European operations.