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First Serve International and USVO form partnership



First Serve International and USVO form partnership





First Serve to Bring MediaSentinel Anti-piracy Technology to Asia-Pacific & the Middle East







(Old Lyme, CT - May 12, 2005) - USA Video Interactive Corp.(OTCBB:
USVO; TSX: US; BSE/Franfurt: USF; http://www.usvo.com), supplier of the
powerful MediaSentinel™ digital watermarking technology, has joined
forces in a unique partnership with First Serve International LLC, an
entertainment company focused on feature film and television production
and related entertainment businesses, based in Los Angeles (USA), with
operations also in London (Europe) and Mumbai (Asia).







For two years, USVO diligently developed its comprehensive anti-piracy
solution for addressing the motion picture and television industry's
serious video piracy problem. The MPAA estimates the U.S. motion
picture industry loses in excess of $3 billion annually in potential
worldwide revenue due to piracy. First Serve opens the door to
implementing USVO's proven product worldwide with particular emphasis
to its introduction and use in one of the world's fastest growing media
markets, Asia. With high-level access in the motion picture and
television production and distribution enterprises that include North
American studios and networks, First Serve puts powerful resources
behind MediaSentinel and provides a significant step toward USVO
profitability.







By marketing USVO's MediaSentinel Workstations and licensing USVO
technology, in effect First Serve will take the lead in the ongoing
fight against piracy by offering the entertainment industry
MediaSentinel's digital watermarking products and services for studios,
television programmers and other customers. "We are very excited about
the tremendous opportunity this relationship brings for market
acceptance of MediaSentinel," said Edwin Molina, President and CEO of
USVO. "We are extremely excited to have a person of the stature of
First Serve's Chairman Vijay Amritraj sign on to this important mission
of developing the future of media property," said Molina, adding that
he was elated to "receive the endorsement and support of Vijay who is
not just a legendary sportsman and entertainment entrepreneur but also
a UN Messenger of Peace."







In the USVO-First Serve relationship, the companies will jointly market
the MediaSentinel Workstation to companies throughout Asia (including
Bollywood in India), Europe, and the United States. In support of these
efforts, the companies will collaborate with sales support, marketing
and educational programs and materials that make clear the benefits of
watermarking to potential customers. Through these efforts, the
companies intend to attract new business and break ground on
enforcement of copyright holders.







"We are indeed excited to work with USVO. MediaSentinel offers
tremendous benefits in a cost and time efficient manner to the
fast-growing media industry around the world to fight and deter
piracy," said Vijay Amritraj. First Serve will launch a global campaign
to create awareness by showcasing the MediaSentinel at premium
production and post-production facilities to demonstrate its proven
ability.







The MediaSentinel Workstation embeds effortlessly, invisible forensic
watermarks throughout the entire area of every frame in video content.
The watermarks are virtually impossible to remove, and can survive a
wide variety of conversions and attacks. MediaSentinel includes unique
SmartMark technology that intelligently evaluates image characteristics
to ensure that the watermarks remain invisible even in extreme
situations. Law enforcement authorities and others authorized with
MediaSentinel's software and keys can easily read the watermarks.
MediaSentinel complements other content protection methods that are
used in video distribution.











About USA Video Interactive Corp. (USVO)





USVO is a developer and supplier of Internet media delivery services,
systems, and innovative end-to-end solutions. The Company developed its
MediaSentinel™ digital watermarking technology and its StreamHQ™
architecture to provide a wide range of business customers with
value-added media delivery services. USVO holds the pioneering patent
for store-and-forward video, filed in 1990 and issued by the United
States Patent and Trademark Office on July 14, 1992; it has been cited
by at least 165 other patents. USVO holds similar patents in Germany,
Canada, England, France, Spain, Italy, and Japan. For more information,
visit www.usvo.com.







About First Serve International, LLC (FSI)

First Serve International is a California based LLC with offices in Los
Angeles, London and India to produce and distribute motion pictures and
television programming. FSI also offers consulting and marketing
services to media companies and markets media related products as well
as engages in related businesses such as consumer products licensing.
Besides its well-known Chairman, Vijay Amritraj, FSI management
includes its CEO, Edward Borgerding, a former senior executive of the
Walt Disney Company, and, FSI Senior Vice President, Munish (Max)
Gupta, a well known Asian-American journalist turned entertainment
entrepreneur.







USA Video Interactive Corporate Headquarters Office: 83 Halls Road, Old Lyme, Connecticut, 06371 Telephone (860) 434 - 5535



Facsimile (860) 434 - 5782; Canada Office: 507 - 837 West Hastings
Street, Vancouver, BC V6C 3N6. Trading symbol on the OTCBB: USVO;
Trading symbol on the TSX Venture Exchange US; Trading symbol on the
Berlin and Frankfurt Stock Exchanges: USF. CUSIP 902924208. For more
information contact Edwin Molina (860) 434 - 5535; Cette adresse e-mail est protégée contre les robots spammeurs. Vous devez activer le JavaScript pour la visualiser.







First Serve International, LLC Corporate Headquarters Office: 16555
Sherman Way, Suite A, Van Nuys, California 91406, USA. Telephone (818)
988-5299; Facsimile (818) 988-5812; Email: Cette adresse e-mail est protégée contre les robots spammeurs. Vous devez activer le JavaScript pour la visualiser.







The press release may contain forward-looking statements. Actual
results may differ materially from those projected in any
forward-looking statements. Investors are cautioned that such
forward-looking statements involve risk and uncertainties, which may
cause actual results to differ from those described.







MediaSentinel™ is a trademark of USA Video Interactive Corp.







The TSX Venture Exchange (TSX) has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.