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VUDU's Streaming Movie Service Transforms HDTVs into Movie-On-Demand Video Stores

Santa Clara, CA - July 29, 2009, VUDU Inc., a leading provider of on-demand Internet entertainment services today announced its second-generation service platform specifically optimized for Internet capable smart TVs.

"Smart TV's are part of an exciting new industry trend. VUDU is partnering with leading consumer electronics vendors to embed the new VUDU service directly into the TV, eliminating the expense and hassle of purchasing, installing, or connecting another device to the TV", said Alain Rossmann, CEO of VUDU.

The new VUDU service delivers a compelling environment for consumers to discover and watch high definition 1080p movies on-demand. The company is also announcing that industry leader LG Electronics will ship new HDTVs that include the new VUDU service.

VUDU customers can instantly buy or rent from the largest library of on-demand high definition movies - including the newest releases from all major Hollywood studios, with no monthly fees. The VUDU's service uniquely delivers movies in true 1080p high definition and high resolution Dolby Digital Plus 5.1 surround sound, setting the industry standard for on-demand HD movies.

"Internet-delivered video to the TV, sans box, is the Holy Grail for what the TV industry today calls 'over-the-top' providers, "said Jimmy Schaeffler, Chairman and CSO of The Carmel Group. "I believe VUDU's widely acknowledged excellence in video quality and user experience is likely to be a key driver for customer adoption of this next generation of smart devices in the living room."

"With our second generation platform we are pushing the envelope even further by delivering for the first time features such as instant fast forward and rewind, instant start for all movie qualities including HDX, and an even faster and more refined user interface" said Alain Rossmann, CEO of VUDU.

Key VUDU Features:

* Instant viewing experience: unlike typical Internet and on-demand video streaming, VUDU movies start immediately, and viewers can fast forward, rewind and browse chapters without the delays or the frustration associated with buffering.
* Highest quality on-demand experience: VUDU's unique HDX format delivers true 1080p resolution, TruFilm picture enhancements, and high resolution Dolby Digital Plus 5.1 surround sound
* No monthly fees: customers can instantly buy or rent from VUDU's extensive library of standard and high definition movie and TV titles.
* Largest HD library anywhere: over 2,000 titles are available in HD or HDX format.
* New releases: Newly released titles from all major studios are available day and date with the DVD release, months before they are typically available on subscription-based services.

The new VUDU Service for smart TVs will make its debut on LG Electronics' upcoming models of Broadband TVs [later this fall - subject to completion of availability language by LG in the LG release].

About VUDU

VUDU is a leading provider of digital technologies and services that deliver on-demand Internet entertainment to consumers' HDTVs. The VUDU service is designed to deliver tens of thousands of on-demand movies and TV shows directly to HDTVs. The VUDU HDX format delivers the highest picture quality for on-demand content available anywhere, with true 1080p picture quality and Dolby Digital Plus 5.1 surround sound. For more information, visit www.vudu.com.