Tivus, Inc. (PINKSHEETS: TIVU) today announced it has begun Phase II development of its new high-definition (HD) Internet-protocol television (IPTV) in-room entertainment system upon successfully testing its core ad-insertion technology, last week.

Tivus' agreement with Host Hotels to deploy its new HD IPTV systems in Host properties was previously announced in March of this year. Host Hotels & Resorts, Inc., an S&P 500 and Fortune 500 company, is the largest lodging real estate investment trust (REIT) and one of the largest owners of luxury and upper-upscale hotels.

"We successfully completed testing of our ad-insertion technology in our lab -- the core of our proprietary revenue sharing model. Another Tivus first, ad-supported IPTV allows hotels to migrate away from legacy video-on-demand systems," commented Shiva Prakash, Tivus' president and chief executive officer. "With nearly 900 rooms now live, Tivus' inaugural installation has continued to satisfy hotel guests by creating a home-like experience; frankly, the response has exceeded our expectations.

"Tivus ad-supported, revenue-sharing business model capitalizes on new, fully interactive IPTV technology offering a completely interact experience for the guest, such as ordering room or spa services, while turning the hotel's entertainment system into a significant revenue center."

Host currently owns 104 properties in the United States and nine international properties totaling approximately 62,000 rooms. Host partners with premium brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, The Luxury Collection®, Hyatt®, Fairmont®, Four Seasons®, Hilton®, Accor®, Swissotel® and Le Meridien® in the operation of properties in over 50 major markets worldwide.

"News of Tivus' revenue sharing business model has traveled fast, as I have spent the last two weeks visiting certain hotel chains and properties that requested demonstrations. We are committed to our goal of providing hotel entertainment as a profit center to the world's hospitality and gaming industries," Prakash concluded.

About Tivus, Inc. Tivus, Inc. is a technology entertainment services company providing Internet-based TV and Cable programming, interactive game content, and goods & services to the hotel/hospitality industry. Tivus' unique HD IPTV system is a complete hotel entertainment platform that, for the first time in the industry, generates previously untapped income for the hotel through ad revenue-sharing. For more information, please visit www.tivus.com and www.tivusconnect.com, or check us out on www.facebook.com/tivusconnect or www.twitter.com/tivusinc.

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Media Relations: Steven Haag (832) 413-6206 stevehaag@tivus.com