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@Home and K-Tel Make Music

May 18, 1998

K-Tel International Inc.
today announced it signed an extensive marketing and services agreement
with cable Internet provider @Home Network.


The agreement’s terms call for Redwood City, CA-based @Home’s business
division, @Work, to provide Internet co-location services for K-Tel in
order for the company to expand its Internet marketing presence. K-Tel
will gain services such as network
management and placement of its corporate servers in off-site centers. @Work
and co-location partner Exodus
Communications
offer turn-key, network-based solutions.


In addition, @Media, @Home’s content
and interactive-advertising arm, will be responsible for launching what
it calls the first broadband audio and video promotional rollout for K-Tel.
The promotion will feature sound clips and music-video snippets from the
K-Tel catalogue available only to @Home subscribers. K-Tel
will also sponsor @Home’s music service, Tune-In, which provides online
CD-quality music.


“Today’s announcement underscores @Home Network’s role as a leading
provider of strategic internetworking solutions,” said Don Hutchison,
senior vice president and general manager of @Work. “By combining @Work’s
consulting expertise,
@Home Network’s large broadband audience and @Media’s leadership role in
K-Tel’s promotional effort, K-Tel will have access to the resources it
needs to secure a significant footprint in the Internet marketplace.”


“This agreement
establishes a relationship with a leading technology
provider, significantly expands our access to broadband
audiences and creates enhanced long-term marketing and sales opportunities,”
said David Weiner, president of K-TEL International.

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