Open TV Reports Q2

SAN FRANCISCO -- OpenTV (NASDAQ:OPTV), a leading provider of enabling technologies for advanced digital television services, today announced financial results for its second quarter ended June 30, 2006."The financial and operational success OpenTV demonstrated during the second quarter illustrates the continued global demand for our core middleware and advanced digital television solutions," said OpenTV's Chairman and Chief Executive Officer, James A. (Jim) Chiddix. "We experienced strong revenue growth during the quarter and posted positive adjusted EBITDA for the third straight quarter. We also achieved a long-term strategic objective by signing a multi-year licensing deal with Time Warner Cable, giving us a strong initial footprint into the U.S. cable market. That relationship, combined with our successful ongoing work with Liberty Global, and several other recent deals, firmly establishes our business in both the cable and satellite sectors, offering us a much more diverse client portfolio than several years ago. And that success continues to prove itself through an expanding global footprint, with nearly 71 million OpenTV-enabled set-top boxes now shipped worldwide."

Second Quarter 2006

For the quarter ended June 30, 2006, revenues were $23.7 million, an increase of 13% over revenues of $20.9 million for the second quarter of 2005. Royalties and licenses revenues increased 18% to $14.7 million. Services and other revenues increased 7% to $9.0 million. Adjusted EBITDA, before unusual items, improved to $0.4 million for the quarter ended June 30, 2006, compared to a loss of $0.1 million for the second quarter of 2005. Adjusted EBITDA, before unusual items, is a non-GAAP financial measure. Reconciliations of the differences between this non-GAAP financial measure and net loss, which is the most directly comparable GAAP financial measure, are included at the end of this press release. Additional information regarding the derivation of Adjusted EBITDA and a statement of the relevance to management of this information and its possible usefulness to investors is also included in this release.

Net loss for the second quarter of 2006 was $2.5 million, or $0.02 per share, compared to a net loss of $4.0 million, or $0.03 per share, for the second quarter of 2005. Net loss for the 2006 period includes approximately $1.0 million, or $0.01 per share, in share-based compensation expenses, which the company began reporting in 2006 pursuant to SFAS 123R.As of June 30, 2006, the company had $24.1 million in deferred revenue compared with $22.6 million at the end of 2005.As of June 30, 2006, OpenTV had cash, cash equivalents and short and long- term marketable debt securities totaling $65.0 million compared to $64.5 million as of December 31, 2005.

Segment Information (quarter over quarter comparisons)

Revenues

Contribution Margin

OpenTV Corp. (Nasdaq: OPTV)