SEPTEMBER 23, 1997 OTTAWA: IC Television announces that it has started production of its TELESCAN hand-held unit coinciding with Motorola's release of its new product - the Set-Top Communications reference platform. The initial production run is for 5,000 units which have been purchased by Motorola.

IC Television Inc. Signed a letter of intent with RES International Inc. on Sept. 8 to form a joint venture for combining their products (announced on Sept. 15). RES Inc. will contribute its software products and expertise in electronic commerce.

The production of the initial TELESCAN units will be under contract to DEN-O-TECH International Inc. of Geneva and Montreal. These units are designed for use in the hotel industry. The TELESCAN unit accepts smart cards and cash cards of all protocols. It is a multi-function unit that can be geared to specific requirements of users. The initial units will incorporate access to various business functions and entertainment; the hotel earns commissions on business transacted; the units are installed in hotel rooms without an up-front charge.

The market for interactive TV including hand held smart control units is expanding. In a recent study, the investment bank Morgan Stanley Group Inc. has estimated that up to 300 Million units will be sold within five years. RES Inc. will provide to the TELESCAN user access to the Internet and its Cybermalls. Complete electronic commerce transactions through the TELESCAN are supported. The consumer will have access to catalogs of merchants who participate in a Cybermall, compare goods and prices which are shown on the TV screen and can be altered by merchants, select a card, and pay for the order. Banking arrangements are in place, and security is provided by CyberCash. In addition, the user can spend cash held in a cash card within the TELESCAN unit.

Up to U.S. $ 5 Million has been committed to the IC Television/RES joint venture to bring the products to market, and finance initial production. Both RES Inc. and IC Television will become resellers of each others' products. These products will be show-cased at the Fall COMDEX show in Las Vegas, Nevada. RES Inc. is traded on the CDN (symbol RESZ).

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