Tiscali Acquires Homechoice

LONDON, August 14: The Italian Internet firm Tiscali is
merging its British broadband operations with Video Networks International’s
VOD outfit Homechoice.

Video Networks International is offloading Homechoice in
exchange for an 11.5 percent stake in Tiscali UK, valuing Homechoice at £100
million. The move allows Tiscali to offer its British subscribers high-speed
Internet, telephony and television services.

Following the merger, Tiscali UK will immediately have more
than 1.3 million DSL customers, of which 350,000 customers are taking voice and
broadband, and over 45,000 will be IPTV subscribers. Homechoice's premium
offering includes content from all the major Hollywood studios, delivering a
library of over 1,000 movies, more than 5,000 interactive music videos and a
full bouquet of pay-TV channels.

"This agreement represents a very important step for
the Tiscali Group not only in the U.K. market, where Tiscali's position would
be further strengthened, but also in the other markets, allowing Tiscali to
position itself as a true Triple Play operator,” said Tommaso Pompei, the CEO
of the Tiscali Group. “The Triple Play offer in the U.K. will be launched by
the end of the year and will be immediately followed by the launch of the
service in Italy and then in the other markets."