October 18, 2000

USA Video Interactive Demonstrates "Hotel" Solution at Leading Industry Trade Show

Complete turnkey package includes content and latest video-on-demand system for hotels, corporations

Toronto, Ontario, Canada, October 18, 2000 -- USA Video Interactive (OTCBB: USVO; CDNX: US; www.usvo.com) is demonstrating its turnkey "hospitality" package to more than 600 financial and technology professionals in the hospitality industry this week at the 47th annual Hospitality Financial & Technology Professionals (www.hftp.org) show being held in Toronto October 18 through 21. The USA Video Interactive system includes its Hurricane MediaCaster™ video server; set-top boxes and related peripheral equipment; and a wide array of content, which includes broadcast television, first-run and just-off-first run movies, and other entertainment.

USA Video Interactive Executive Director Daniel Sciro, who oversees sales for the company, will represent USA Video Interactive at the show in partnership with representatives of SwitchWorks, Inc., a Toronto-based engineering firm that builds and services in-building, wide area and mobile business solutions using the power of wireless communications to extend the reach of enterprise computing. The companies have established a technology partnership to deploy interactive TV systems for the hospitality industry in Canada.

The USA Video Interactive system can be installed in hotels and other multi-dwelling units with a video server placed in a central location. Each room or unit is provided with a set-top box, which delivers broadcast television, movies and other entertainment such as sporting events on demand on a pay-per-view basis; one or more stations with programming directly serving the hotel or facility; and the capability of inserting local or other advertising. The installation integrates USA Video Interactive's video technology with SwitchWorks' data and Email delivery products, and works over existing Intranets. It is particularly attractive because it involves low up-front costs for the facility, but creates ongoing revenue-sharing opportunities for the participants in the project, in this case USA Video Interactive, SwitchWorks, the content owner/provider, and the hotel itself.

About SwitchWorks
SwitchWorks is a solutions-oriented engineering firm with a proven management team, powerful strategic alliances and pivotal market positioning. The company was incorporated in 1990 and is headquartered in Toronto, Canada. SwitchWorks provides enterprise-wide applications built using an exclusive suite of broadband services branded as "Wireless High Speed Internet" (WHIP). Its suite of business applications provides Hospitality, Multi-Tenant Unit (MTU) and Manufacturing groups with improved methods for office and client communications. For more information, visit www.switchworks.com SwitchWorks; 23 Triller Avenue, Suite 201; Toronto, Ontario, Canada M6K 3B7; 416-531-8750. Contact: Rick Crowe

About HFTP
Hospitality Financial & Technology Professionals (HFTP) is a professional association of more than 4,300 financial and IT professionals working in hotels, resorts, clubs, restaurants, casinos, and other hospitality-related businesses around the world. The association provides continuing education and networking opportunities to its members, more than 80 percent of whom have purchasing authority in their organizations. The 2000 HFTP Annual Convention & Tradeshow is a once-a-year opportunity for hospitality finance and technology professionals to get practical information about all aspects of their profession-plus a chance to network with peers and visit one-on-one with hospitality vendors. The four-day conference will offer over 30 educational opportunities taught by industry experts, and covering a wide spectrum of hospitality finance and technology issues. For more information, visit www.hftp.com. Hospitality Financial & Technology Professionals; 11709 Boulder Lane, Ste 110; Austin, TX 78726; 800-646-4387; 512-249-5333.

About USA Video Interactive
USA Video Interactive is an international designer and supplier of high-tech Internet streaming video and video-on-demand systems, services and innovative end-to-end solutions. The USA Video Interactive patent for store-and-forward video, #5,130,792, was filed in 1990 and issued by the United States Patent and Trademark Office on July 14, 1992; it is considered a pioneer patent in the field of video-on-demand and Internet video. It has been cited by at least 133 other patents. In 1999, USA Video Interactive was awarded similar patents in England, France, Spain, Italy and Germany; the company has patents pending in Canada and Japan. The USA Video Interactive patented video technology gives users full-motion video; the flexibility of standard, VCR-like controls; and the convenience of a standard internet-browser format for access. It provides video images significantly faster and at a higher degree of resolution than with previously available methods; significantly overcomes bandwidth restrictions; and eliminates the blockiness and slowness of current technologies -- all at a lower cost and at or near broadcast quality. USA Video Interactive is nearing completion of a patented Wavelet compression technology that will further enhance the company's ability to deliver Internet video to home modem users and reduce storage and download-time requirements for all users, including those with broadband connections. For more information, visit http://www.usvo.com.

USA Video Interactive Corporate Headquarters Office: 70 Essex Street; Mystic, CT 06355; (800) 625-2200; (860) 572-1560. Canada Office: 837 West Hastings Street; Suite #507; Vancouver, B.C. V6C 3N6. Trading symbol on the OTCBB: USVO; Trading symbol on The Canadian Venture Exchange: US. Standard & Poors Listed. CUSIP 902924208; USA Video, USA Video Interactive, Video-On-Demand and Video Yellow Pages are trademarks of USA Video Interactive. The Canadian Venture Exchange (CDNX) has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. For more information contact: Tony Castagno, Media Relations, 860-572-1560; Kevin Yorio, Investor Relations, 860-572-1560; info@usvo.com.

This press release may contain forward-looking statements. Actual results may differ materially from those projected in any forward-looking statement. Investors are cautioned that such forward-looking statements involve risk and uncertainties, which may cause actual results to differ from those described.