Re Agreement

Orca Interactive Ltd
22 May 2006


 Orca Signs Agreement with Leading Next Generation Network Equipment Vendor for
                  IPTV Deployment with Major Service Provider


   Leading IPTV middleware provider selected to help provide high quality TV
                   viewing experience for triple play service


RA'anana, Israel - May 22, 2006 - Orca Interactive (LSE: ORCA), a global market
leader in developing middleware and applications for IPTV, announced today that
it has signed an agreement with a Global Next Generation Network (NGN) equipment
vendor for IPTV deployment by a large European telecommunications service
provider.

The deal consists of an initial purchase of 50,000 Orca RiGHTvTM middleware
licenses and professional services for a triple play service of IPTV,
Video-overIP and broadband Internet access being built by a large European
telecommunications service provider.

The IPTV service is expected to be launched in the second half of 2006 and that
the agreement will be extended to eventually include up to 400,000 end-user
middleware licenses.

Alon Laor, Vice President of Worldwide Sales and Professional Services at Orca
Interactive, said, 'Orca's advanced middleware offering allows our customers to
take advantage of the burgeoning IPTV opportunity by providing superior quality
TV viewing, an intuitive user interface and additional advanced features. This
announcement is the latest step in Orca's efforts to enable operators and
systems integrators to enter the IPTV market'



About Orca Interactive

Orca Interactive (LSE-ORCA) is a leading provider of IPTV middleware and
applications for broadband network operators and service providers. Orca enables
triple-play providers to deliver a full array of attractive video-over-IP
services that generate new revenue streams and strengthen customer loyalty.
Leveraging a flexible telco-grade middleware platform, Orca empowers operators
to deliver broadcast TV, video on demand (VOD), personal video recording (PVR),
home media and other compelling interactive services. Orca's SI-enabled
solutions are designed for easy outsourcing of integration services by an
operator's preferred systems integrator. Orca has formed strategic partnerships
with leading players across the IPTV value chain to ensure best-of-breed
solutions with low total cost of ownership. For more information, please visit
www.orcainteractive.com.



For further information:
Haggai Barel                                          [phone]
CEO, Orca Interactive

James Melville-Ross / Cass Helstrip                   [phone]
Financial Dynamics



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