K-TEL International, @Home Sign Marketing Pact

Music and video retailer K-TEL International Inc. signed an Internet marketing
and services agreement with @Home Network, a provider of high-speed
Internet services via the cable infrastructure, to expand K-TEL’s entry into the online marketplace.

This agreement engages @Media, the content development and interactive
advertising division of @Home, to create what it called the first-ever
broadband audio and video promotional campaign for K-TEL properties.

The campaign will include audio clips and music video samples of the full
range of K-TEL properties and will be made available on-demand exclusively for
@Home users. K-TEL will also become a lead sponsor of @Home Network’s TuneIn
service, which provides near-CD quality music over the Internet. Financial
details of the pact were not disclosed.

Under the terms of the agreement, @Work, the business-focused division of
@Home, will provide Web site co-location services and a wide range of
consulting services to K-TEL International. @Work’s co-location services will
enable corporate customers to set up servers at off-site co-location centers,
allowing for 24×7 monitoring and other network management services.

“This 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.”

Based in Redwood City, Calif., @Home Network distributes high-speed
interactive services to residences and businesses using its own network
architecture and a variety of transport options, including the cable
industry’s hybrid-fiber coaxial infrastructure.

K-TEL International, which recently entered the e-commerce arena, is a
vertically integrated developer, marketer and distributor of a wide array of
entertainment and consumer products worldwide.

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