September 7, 2007

Orca Interactive and muvee Team Up to Introduce the First-Ever Automatic Movie Creation over IPTV

Innovative UGC application LivePhotos expected to enhance service offerings and will be demonstrated at IBC 2007

Ra’anana, Israel and Singapore – September 7, 2007 – IBC Stand 2.230 – Orca Interactive Ltd. (LSE: ORCA), a market pioneer in providing IPTV middleware and applications, and muvee, the pioneer and leader in instant home movies, today announced an agreement to develop and market LivePhotos, the first-ever application for automatic movie-making over IPTV platforms. LivePhotos combines Orca’s cutting edge user-generated content (UGC) capabilities with muvee’s automatic video editing and photo movie software to produce a groundbreaking new service designed to enhance IPTV service offerings. Orca will demonstrate LivePhotos, which is based on RiGHTv scalable architecture, at the IBC exhibition in Amsterdam in booth 2.230 from September 7-11, 2007.

Orca Interactive plans to offer LivePhotos with its advanced RiGHTv IPTV middleware by the end of 2007. It will be a part of a comprehensive on-demand UGC platform enabling triple-play service providers and network operators to differentiate their offerings and drive new revenues. In addition, Orca and muvee will also consider jointly marketing the new UGC application as a stand-alone solution compatible with all IPTV platform types.

Powered by muvee’s patented technology for automatic video editing, LivePhotos will enable subscribers to create personalized video albums from their photos and video clips, accompanied by their preferred style of music. Orca’s flexible user interface (UI) adds easy-to-use functionality for creating instant home movies over IPTV, bringing the fun and magic of movie-making to the television screen.

Terence Swee, founder and CEO of muvee, said, “muvee’s technology lets people instantly create more emotionally engaging productions that stylishly mash-up their video and pictures in sync to music with added special effects. The result is a much more compelling alternative to scrolling through hundreds of digital stills or having to watch unedited video footage.” He added, “Together with Orca Interactive, we will deliver more fun and value to subscribers by letting them easily create more personalized, meaningful content that they can enjoy and, more importantly, instantly share with those closest to them on their TV screen .”

“User-generated content is increasingly attracting ‘eyeballs’ away from professionally-produced content, and operators realize that they can entice subscribers by helping them use the IPTV platform to see more of themselves and their friends,” commented Sefy Ariely, VP Sales and Marketing of Orca Interactive. “In joining forces with automatic video editing pioneer, muvee, to create LivePhotos, we are able to leverage our position at the cutting edge of IPTV technology and once again deliver an industry first - personalized home videos at the click of a button.”

About muvee

muvee’s software and services feature patented technology that lets people create and share professional-quality instant home movies out of unedited video, digital pictures and music. muvee develops consumer products for a range of platforms and devices including PCs, the online space, digital cameras, camera-equipped mobile phones and photo kiosks. muvee's global customers include HP, Dell, Nokia, LG, Sony, Olympus, Nikon and Creative Technology. More information is available at www.muvee.com.

About Orca Interactive

Orca Interactive Ltd. (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.

“muvee” is a trademark of muvee Technologies. “Orca Interactive,” “RiGHTv” and “LivePhotos” are trademarks of Orca Interactive Ltd. All other trademarks referenced in this release are the property of their respective owners and are hereby acknowledged.