Synacor Launches Solution That Enables ISPs To Bundle Premium Content Subscriptions With Internet Access

Will Deploy Premium Content From Disney, ESPN.com, FOXSports.com, Experian and CinemaNow With Others to Follow

March 4th 2003

BUFFALO, March 4, 2003 — Synacor, the leader in online content provisioning for Internet access providers, today announced the launch of an end-to-end solution that enables ISPs, MSOs and telcos to immediately begin deploying tiered, premium content subscriptions along with their connectivity services. Synacor has signed sublicensing agreements with Walt Disney Internet Group, FOXSports.com, CinemaNow and Experian Consumer Direct (see separate announcements March 4, 2003) for delivery of their premium content through its ISP customers. Synacor’s technology platform, Portelus™, enables the integration of both video and non-video content and services from multiple providers and enhances the consumer experience by providing unified registration, single sign-on and one monthly bill through their ISP. FairPoint Communications and Susquehanna Communications will be the first Synacor customers to begin offering these premium subscriptions to their users in the coming weeks.

“The Internet industry is evolving much like the cable TV industry by implementing a tiered approach to premium content delivery along with connectivity,” said Ron Frankel, president and CEO of Synacor. “Synacor’s platform provides Internet access providers with a completely turn-key solution that will help them increase revenues per subscriber, reduce churn and encourage users to upgrade to broadband. For end-users, convenient monthly billing and single sign-on for all their subscriptions are key advantages of the Synacor solution.”

Synacor’s Portelus platform (www.synacor.com/products/portelus.php) enables access providers to increase revenue by offering content and value-added services that their subscribers might otherwise purchase elsewhere. Synacor’s robust provisioning platform enables the integration of both video and non-video content and services from multiple content providers. Using the Portelus platform, access providers can customize their offerings into different subscription tiers and bill for content access along with their monthly service charge, much like the cable TV industry. Unified registration, single sign-on and integrated billing make the experience seamless for their subscribers. Synacor’s end-to-end solution includes a wide menu of licensed content, an integration and unification system, and a brandable and customizable portal framework. Portelus Premium Service Edition™ (www.synacor.com/products/ppse.php) offers Synacor licensed content and the Portelus delivery platform to access providers who already have a portal in place.

A Rich, Easy-to-Use Content Offering for Both Narrow- and Broadband Subscribers
Synacor provides a growing library of content for subscriptions, including Fox Sports videos and online games, Disney’s Blast, ABCNEWS.com content, ESPN Insider, CinemaNow video-on-demand services and Experian Consumer Direct credit report services, among others. The company also offers basic third-party applications such as search, yellow pages, directions, stock quotes, weather and horoscopes, in addition to Synacor’s messaging and time management applications.

According to analysts, the overall U.S. Internet services market will be driven primarily by value-added services. In addition, analysts predict the paid content market will surpass $5 billion by 2006. Analysts recommend that service providers begin preparing for the premium services and subscription content market opportunities.

About Synacor
Synacor (www.synacor.com) brings the cable television model to the Internet by enabling access providers to offer basic and premium content subscription packages to their customers in a compelling and easy-to-use manner. The company’s end-to-end solution helps narrowband, broadband and wireless access providers to quickly deploy these value-added services and recognize an immediate positive impact on customer retention and revenues per subscriber. Synacor’s Portelus platform delivers the combined strength of a flexible, brandable Internet portal framework, a robust provisioning engine, a unified back end, and a menu of standard and premium content from the industry’s top providers. With offices in Buffalo, New York and Los Angeles, Synacor powers a national network of customers.