- Internet Research Institute and Tau Engineering's Shareholders Include Yahoo Japan, NTT DoCoMo, Canon, Softbank, Sumitomo and Nippon Steel MediaSite K.K. Customers Include e-Learning and Entertainment Industries -

San Jose, CA, Dec. 12, 2000 - MediaSite, Inc., the global pioneer in the development of software and applications for converting video into an interactive medium, today announced the creation of a joint venture with two Japanese companies representing some of the world's largest players in the Internet, wireless communications and imaging equipment manufacturing industries. The venture will make MediaSite the premier provider of Web-based video solutions in Japan.

Internet Research Institute, Inc. (IRI), which counts among its major shareholders Yahoo Japan, NTT DoCoMo, Canon, Softbank and Sumitomo, together with Tau Engineering, whose majority shareholder is Nippon Steel, have teamed up with the Pittsburgh-based software developer to form MediaSite K.K. The company will use the newly developed Japanese-language versions of MediaSite's software to provide customers a total solution for delivering Web-based video across all digital devices in Japan.

MediaSite K.K., which will be based in IRI's Tokyo headquarters, has named Sukeyuki Arima its President and Chief Executive Officer. MediaSite will hold a 40% stake in the joint venture, with the Japanese partners holding the remaining 60%.

"This partnership enhances our ability to provide leading-edge products and services to customers in Japan," said MediaSite President and Chief Executive Officer Vinay Mehra. "It also formalizes the relationship we've built with IRI and Tau and demonstrates our commitment to being a global company."

The joint venture will target customers in Japan's entertainment, media, government and corporate sectors. MediaSite K.K. will sell both Web-based video technology and professional services.

Within its first week of operation, MediaSite K.K. has already signed up two major customers. Yamanashi Prefecture will use MediaSite's technology to launch a $1 million, multi-year e-learning project that initially will focus on providing English-language educational content to universities through a high-speed ATM network. In addition, iMagica, Japan's premier video and film post-production company, will offer its services and enhance its many video-related Web sites with MediaSite technology.

About Internet Research Institute, Inc.

Leveraging its strengths in networking technology and business, Internet Research Institute is a strategic Internet infrastructure and business incubator focused on guiding Japan's networking, commerce, finance and media infrastructures into the networking age through entrepreneurial joint ventures. Founded in 1996, IRI began as an Internet technology provider to create an ideal network society by widely applying Internet technology developed in academia to industry. Through consulting, collaborations and joint ventures with some of Japan's most successful companies, IRI quickly became the leading authority on building Internet businesses in Japan. IRI established and operates the first commercial Internet Exchange in Japan (JPIX), one of Japan's largest Internet data centers (Global Center Japan) and the first broadband exchange, as joint ventures. IRI was the first company to offer shares on the Tokyo Stock Exchange MOTHERS board and takes a leadership role among aspiring technology ventures in Japan. Visit IRI at http://www.iri.co.jp/eng/

About Tau Engineering, Inc.

For over 25 years, Tau Engineering has been the leader in providing engineering software services throughout Japan. A private company, Tau Engineering's majority shareholder is Nippon Steel. Tau Engineering provides software and hardware development services to customers in the entertainment, media and corporate sectors.

About MediaSite, Inc.

MediaSite is the pioneer of enhanced streaming technology tools that transform video into an interactive medium for the Web. Based in Pittsburgh, Pa., MediaSite is a fast-growing international company with offices throughout the U.S., Asia and Europe. Founded in 1997, MediaSite derived its core technology from a Carnegie Mellon University research effort funded by leading government agencies and private corporations, including Bell Atlantic, Boeing, CNN, Intel and Microsoft. Today, MediaSite has over 100 customers in the media and entertainment, financial services, consumer products, government and advertising industries in the U.S. and abroad. For more information, visit www.mediasite.com. Or come see us Dec. 12-14 in Booth #1624 at Streaming Media West 2000!