HIGHLIGHTS van het eerdere stuk voor wie niet alles wil lezen en wat nederlandse toevoegingen wil OPENTV OPEREERT OP EEN GIGA GROEIMARKT INVESTMENT THESIS: We believe that interactive TV (iTV) will become a mass market service over the next 3-5 years with an attendant dramatic rise in revenue from applications such as T-commerce, iTV advertising and games/betting. As one of the successful "first movers", OPTV will remain an industry leader as iTV gains acceptance with consumers, in our view. - U.K. research firm Ovum predicts that a third of all households internationally - more than 350 million homes - will have digital TV by 2006. - Today, the embryonic iTV service is available in about five million homes in the U.S. and in an estimated 20 million in Europe, where iTV penetration is growing rapidly. Worldwide, 625 million homes will have iTV access by 2005, up from an estimated 40 million by the end of 2001, according to Strategy Analytics. OPENTV IS EEN WINNAAR Many iTV companies are small, undercapitalized and narrowly focused. Conversely, OPTV, with $195M in cash and equivalents, the most widely deployed iTV platform in the world by a wide margin, aggressive efforts to build recurring applications revenue and operating cash flow breakeven forecast by '03, will be one of the winners, in our view. DE MARTKTLEIDER ZOU EEN PREMIE MOGEN VERDIENEN IPV EEN DISCOUNT! OPTV shares trade at a substantial discount to it's peers. We believe this discount stems from the perception that OPTV has not made substantial inroads in the U.S. iTV market. In fact, OPTV's is the most widely deployed iTV platform in the U.S. OPTV has not had a deployment through a major MSO, although we expect this to change in the short term. Another factor holding the shares back is the shareholder structure. South African holding company MIH Limited controls 89% of OPTV voting shares. MIH could enact some change that is not consistent with general shareholders' interests, but we believe the likelihood of this risk is low. We believe that OPTV shares deserve a premium (!!!!!) to those of the Company's peers, as it is the most widely deployed and vertically integrated company in the iTV space. OPTV shares do not reflect the company's long-term growth potential. For investors who want exposure to this speculative technology, OPTV shares trade at only $34/subscriber versus an iTV industry average of $350 and vs. $1,500+/sub for CATV. We believe they represent a buying opportunity at this level. Conservatively, our 18-month price target of $15 implies a market cap/subscriber value of $63, which would still be well below the industry average. OPENTV IS ZELFS MEER DAN ALLEEN I-TV!! In addition, Spyglass' Prism technology, which reformats web content to be accessible on cellular phones, handheld computers and other wireless devices, is expected to position OPTV as a leader in the delivery of Internet to wireless appliances. OPENTV HEEFT DE JUISTE STRATEGIE: 1) STERK IN THIN-CLIENTS At the same time, shipments of lower cost thin-client digital STBs that can support iTV and interactive applications are surpassing those of more advanced costlier fat-client boxes. International Data Corp (IDC) estimates that by 2004 STB shipments will be 24+ million in the U.S. and nearly 70 million worldwide and roughly 90% will be thin client. This is positive for OPTV. Unlike competitors, its platform works well on the thin-client box where most of the processing occurs at the cable or satellite head-end. 2) OPENTV HANTEERT EEN JUISTE VOLGORDE QUA FOCUS: EERST SATELLIET-TV, DAARNA KABEL U.S. cable operators have lagged satellite operators in deploying iTV. CATV deployment of iTV will probably accelerate, as the cable industry needs to offer digital services to remain competitive with satellite operators. Moreover, there is a substantial economic inducement for cable operators to bundle iTV services. It will increase subscriber