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Digital TV set with VisionTech's Kfir will offer Personal Video Recording capabilities, allowing simultaneous recording and playback of full-quality digital video - without a VCR or videotape. Personal Video Recording enables viewers to freeze a ``live'' TV program, instantly replay or rewind a program being watched, and skip ahead in a recorded program to their favorite movie scene or the next big play of a sporting event, offering greater control over their TV-viewing experience. Viewers will be able to quickly find programs to watch, as well as to record and view programs of their choice with the touch of a button. Personal Video Recorder may even monitor the viewer's program preferences and record similar shows that he might want to see at a later time.

``We are very happy to select VisionTech's Kfir technology for our Personal Video Recording TV's,'' said Bae-Guen Kang of DTV Research Lab, LG Electronics. ``We are impressed with VisionTech's technology and execution record. Together, LG Electronics and VisionTech will provide a state-of-art hardware and software platform to meet the growing consumer demand for personal video recording and enhanced TV.''

Kfir is the most advanced MPEG-2 encoder in the market, offering high video quality and unparalleled performance at consumer level price. Kfir captures and encodes uncompressed video and audio and generates MPEG-2 program or transport, or MPEG-1 system stream. Kfir requires a single 64Mbit SDRAM to operate. Kfir's applications include cable and satellite set top boxes, stand-alone personal video recorders, DVD recorders and video over IP.

``We are excited to be working with LG Electronics to enable personal video recording capabilities for its most advanced digital TV products,'' said Amir Morad, President and CEO of VisionTech. ``Kfir's unparalleled performance, video quality, industry's lowest memory requirements and system cost ideally fit the concept of digital TV set with personal video recording capabilities''

LG Electronics further announced that the new PVR based TV will be in production 1Q 2001.

About VisionTech:

VisionTech develops, designs, markets and supplies integrated circuits for digital video and audio compression. VisionTech is a privately held company, founded in 1996, headquartered in Herzliya, Israel. Visit our web site at www.visiontech-dml.com

About LG Electronics:

LG Electronics(LGE) Inc. has the world best technology & productive capacity in the field of digital display & devices (digital TVs, PDP etc.), home appliances and multimedia products. Spanning the global distribution throughout 180 nations, LGE is now forging its image as a global leading enterprise, 'LG-Digital Leader'. For more information on LGE, please visit www.lge.com

Contact:

     VisionTech, Herzlyia
     Steve Unger, 845/352-3700
     Fax: 845/371-1556
     Email: steve@visiontech-dml.com
     or
     Brian Lemelman, 561/691-9000
     Fax: 561/691-4780
     email: lemelman@visiontech-dml.com
     or
     Europe/Japan/Asia:
     Tommy Orpaz, +972-9-9512-877 Ex. 203
     or +44-77-88-741-281
     Fax: +972-9-9512-878
     Email: orpaz@visiontech-dml.com