Agreement Signed with Telewest Digital TV

Smith (W.H.) Group PLC 21 December 1999 WHSmith signs on to Telewest digital TV Telewest Communications has signed an agreement for WHSmith to join its forthcoming interactive TV service, 'Active Digital'. The high speed service will be launched in the first quarter of 2000 and will be available to more than four million homes by the end of next year, alongside Telewest's 150-channel digital TV service launched in October 1999. Interactive TV will offer Telewest's digital viewers access to books, music, financial services, groceries, holidays, software and a wide variety of other goods and information services. WHSmith will sell its full range of products including books, CDs, videos and stationery through Telewest's shopping facilities. It will also provide bespoke content for Telewest's Education channel. Telewest's high bandwidth, fibre-optic network will allow retailers to develop richer and more dynamic interactive experiences for their customers, incorporating full motion video, stereo sound and animation alongside more familiar text and graphic information. The move to retail on Telewest Active Digital is a further development in WHSmith's plans to become the UK's dominant online retailer of books and entertainment products. In October, WH Smith Group Chief Executive, Richard Handover, announced the Company's intention to claim 30 per cent of the online books market within three years. Of the latest e-commerce deal, Mr. Handover said: 'Our goal is to increase our overall market share by offering our customers the opportunity to purchase from us wherever and whenever they prefer. Joining Telewest gives us access to an estimated 500,000 new customers over the next year - many of whom may wish to shop without leaving home.' Tony Illsley, Chief Executive of Telewest sees WHSmith as a key addition to Active Digital's interactive TV service. 'WHSmith is one of the most trusted and recognised brand names in the country and a very important endorsement of our online interactive TV service. We now have more than 15 leading retailers signed up to provide content for our forthcoming service and we are well on our way to reaching our target of 40 retailers by launch before April next year.' WHSmith expects to go live on Telewest within the first three months of next year, using the backbone of its internet service at WHSmith Online to provide ordering and fulfilment facilities. WHSmith already sells on the Open TV channel. Since Open's launch in October, sales are well ahead of expectations. WHSmith anticipates similar success with the Telewest service. Its high speed, broadband capabilities will allow customers faster access to the Internet with a greater degree of interactivity. Enquiries: Tim Blythe WH Smith Group PLC 0171 409 3222 Director of Corporate Affairs Tim Brill Telewest Communications 01483 251520 PR Director

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