Contract Win

Orca Interactive Ltd
29 August 2007



Blockbuster Israel Signs $3m Deal With Orca Interactive to Take Orca's Unique
Combined IPTV and WebTV Solution

Orca newly-launched first to market technology will enable Blockbuster Israel to
deliver digital content services to subscribers

Ra'anana, Israel - August 29, 2007 - Orca Interactive Ltd. (LSE: ORCA), a market
pioneer in providing IPTV middleware and applications, today announced that it
has signed a $3m deal with Blockbuster Israel, the Israeli franchise of
Blockbuster  Inc, the leading global provider of in-home rental, retail movie
and game entertainment.

Orca is also announcing that it is first to market with a unique combined IPTV
and WebTV solution. This innovative new WebTV technology will enable Blockbuster
to deliver advanced digital content services to its subscribers.

Expanding on Orca Interactive's cutting edge RiGHTv middleware platform with
all-new capabilities, the combined IPTV and WebTV solution supports both managed
and unmanaged environments, eliminating boundaries to help service providers
expand their customer base and market reach. IPTV service providers will also be
able to broaden offerings to existing subscribers with anytime, anywhere TV
services for on-the-go digital content over mobile PCs. In addition, content
offerings can be extended beyond IPTV to enable WebTV, diverse multimedia, niche
content and user generated content (UGC).

Using Orca's new combined solution, Blockbuster Israel will launch a new
Internet service for progressive download of up-to-date digital content over PCs
by the end of the year. In early 2008, Blockbuster Israel plans to provide an
IPTV-ready STB to enable TV connectivity from the PC and advanced services such
as Push VOD and HDTV, followed by a complete digital TV offering.

'This announcement marks a new era for Blockbuster Israel, driving us to the
forefront of next-generation video services and demonstrating our market
leadership. Breaking new ground with a cutting-edge Web service, we can now
deliver the latest movies and television series directly to subscribers' homes
through an advanced digital platform', commented Ofer Lowy, Chairman of
Blockbuster Israel. 'Orca's unique solution powers high quality interactive TV
and digital content services, so that our subscribers can benefit from a triple
bundle of local branches and vending machines, Web content and a full IPTV
package in the future.'

'We are thrilled to launch our revolutionary WebTV offering, while enabling
Blockbuster Israel to deliver advanced digital content services', said Haggai
Barel, CEO of Orca Interactive. 'WebTV can help IPTV players today protect their
market share and maintain a competitive edge. As the first to market with this
unique combined IPTV and WebTV solution, Orca is yet again pioneering the future
of IPTV - this time leading the market towards total convergence of managed and
unmanaged services for top-notch home entertainment.'

Orca first announced its involvement with Blockbuster Israel in December 2005,
though at the time Orca was unable to disclose the identity of its partner.  At
the time of that announcement, Orca also announced an agreement to acquire a
stake in Blockbuster Israel for $2.5m and now owns 33.33% of the company.


About Blockbuster Israel

Blockbuster Israel, a franchise of Blockbuster Inc., is a leading provider of
in-home rental, retail movie and game entertainment. With 30 branches and 250
DVD vending machines across Israel, Blockbuster Israel delivers the best content
and the widest selection of movies, television series, games, music and more for
top-quality home entertainment. For further information please visit
www.bbm.co.il.


About Orca Interactive

Orca Interactive (LSE:ORCA) is a market pioneer and innovation leader in
providing IPTV middleware and applications, bringing the power of next
generation interactive TV to help service providers and broadband network
operators drive growth. Revolutionizing the way people consume television
content, Orca Interactive's dynamic IP video and feature-rich multimedia
solutions combine live TV, video on demand (VOD), personal video recording
(PVR), home media and personalized services, including the latest in content
discovery and user generated content, across a multi-device platform, and over
the Internet through its unique WebTV solution. Orca Interactive's proven RiGHTv
solution is System Integrator (SI)-enabled, providing a flexible approach for
tailored IPTV solutions with leading vendors across the value chain. Orca
Interactive has diverse experience in delivering cutting-edge interactive
services and applications, enabling operators and triple-play providers to
deliver the ultimate IPTV experience.

Founded in 1996, Orca Interactive is based in Ra'anana, Israel and is part of
the Emblaze Group. For more information visit www.orcainteractive.com.



Enquiries:


Haggai Barel, CEO
Orca Interactive
[phone]


James Melville-Ross
FD
[phone]



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