Admission to AIM

Orca Interactive Ltd
13 October 2004

Embargoed for release at 8.00am on 13 October 2004


                           Orca Interactive Limited


                           FIRST DAY OF DEALINGS ON
                       THE ALTERNATIVE INVESTMENT MARKET

The Board of Orca Interactive Limited ('Orca' or 'the Company'), a software
provider for the IPTV market, announces that the Company's shares have today
been admitted to trading on the Alternative Investment Market of the London
Stock Exchange ('AIM'). The Company's trading symbol is 'ORCA'.

14,141,414 new Orca ordinary shares have been allocated to institutional and
other investors at a price of 99 pence per share (the 'Placing Price'), raising
approximately £14 million for the Company.  On admission to AIM a total of
35,278,549 Orca ordinary shares were in issue capitalising the Company at
approximately £35 million at the Placing Price.

Altium Capital is the Company's nominated adviser and broker.

Commenting on the successful fundraising, Haggai Barrel, Chief Executive of Orca
said:

'The growth prospects for the IPTV market look to be gaining some momentum at
the moment so the timing of our IPO is particularly fitting.

'There's a great opportunity for Orca to make the most of this growth and these
funds will give us the financial strength and flexibility to grow both
organically, by accelerating the adoption of our products, and through selective
acquisitions.'

For more information, contact:

Orca Interactive Limited
Haggai Barel, Chief Executive                                 [phone]

Altium Capital Limited
Garry Levin / Tim Richardson / Matt Lee / Alex Church         [phone]

Financial Dynamics
James Melville-Ross                                           [phone]



NOTES TO EDITORS

Company overview

Orca develops and licences proprietary middleware which enables IP service
providers e.g. telecommunication companies ('telcos') to deploy enhanced
entertainment services, such as broadcast TV, directly over broadband telephony
infrastructure (e.g. a DSL line) to a subscriber's television set - a service
known as IPTV.  Within an IPTV system, the middleware is one of the key enabling
technologies as it integrates the various components of the system and plays a
central role in the delivery and management of the IPTV service.

Established in 1995, Orca was an early entrant to the IPTV middleware market and
has since established itself as one of the leading developers of IPTV middleware
solutions. In April 2000 the Company was acquired by Emblaze Limited, an Israeli
company, listed on the Official List of the UK Listing Authority that focuses on
rich-media personal communication over wireless and broadband IP networks. As a
member of the Emblaze group, Orca has received the financial support which has
allowed it to accelerate the development of its core products and demonstrate
its ability to commercialise them by establishing key reference deployments.

The Orca Directors believe that Admission will increase the Company's
credibility amongst its customers and partners and provide the Company with an
appropriate platform from which to accelerate the adoption of its products.
Furthermore, the Directors believe that the proceeds of the Placing will give
Orca the financial strength and flexibility to grow effectively within its
markets, both organically and through selective acquisitions.

The IPTV Market

Although the IPTV market is currently at an early stage of development, it is
expected to grow rapidly in the future as incumbent telcos accept the business
necessity of providing IPTV as part of a 'triple-play' offering of bundled
voice, data and video services. According to research by Multimedia Research
Group (MRG), the number of global IPTV subscribers is expected to grow from 0.7
million in 2003 to approximately 15.6 million in 2007. This growth is expected
by MRG to be led by the service providers in the Asia Pacific and European
regions where DSL is most widely deployed.

As one of the key constituents of an IPTV solution, the middleware market is
expected to be a beneficiary of the rapid growth in IPTV subscriber numbers. MRG
predicts that, cumulatively, over the next three years (2005 - 2007) the
middleware market will be worth approximately $313 million. In calculating this
figure, however, MRG has only included revenues derived from subscriber licence
fees and has not taken into account customer support, professional services and
software upgrades fees. The Orca Directors believe that these additional revenue
streams will result in the value of the IPTV middleware market exceeding MRG's
forecast.

Key strengths

The Orca Directors believe that the Company has now established itself as a
leading middleware provider in the IPTV market and that the following factors
differentiate Orca from its competitors and represent barriers to entry for
potential entrants:

•         Embedded relationships - Orca has strong relationships with a number
of large incumbent telcos and IPTV prime contractors. In addition, unlike many
of its competitors, Orca is not exclusively aligned with any access provider.
The Company has alliances with access provider partners, for example, Huawei,
ZTE, Samsung, Corecess, Nortel, ECI Telecom and Nokia, in many of the key
markets for IPTV.

•         Open architecture - Orca's middleware platform is built with strict
adherence to open standards which the Directors believe gives operators
flexibility to work with a variety of set-top-boxes (STBs) and other components,
enables open integration with external legacy systems (like billing and
subscriber databases) and allows the addition of new devices and formats. By
offering an open architecture middleware solution, Orca allows service providers
to choose from a wide list of potential IPTV component providers. To date, the
Company's middleware is integrated with, or used in, six different STBs, four
different video servers, five different DSLAMs and five different encoders;

•         Scalability of solution - Orca's RiGHTv(TM)Core platform has been
designed to meet strict telecommunications industry requirements for
scalability, availability and security. The platform has undergone load testing
benchmarking that has proven its ability to support a large number of
subscribers. In January 2003, the Company carried out a series of benchmark
tests using its middleware solution and Oracle databases to simulate an active
subscriber base of 100,000. The Orca Directors believe that Orca is the only
middleware provider which has so far undertaken such rigorous testing and that
it is a clear demonstration to the Company's partners of the strength of its
solution; and

•         Established customer references - Orca has established key customer
reference points through a number of commercial deployments with incumbent
telcos and other service providers and is now firmly established within the IPTV
middleware market.



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