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Stream Theory Announces New Games on Demand Licensing Agreement With Interactive Entertainment Media Group

More Than 200,000 Digital Distribution Subscribers Worldwide

IRVINE, CA. - Jul 24, 2006: Streaming application technology provider Stream Theory, Inc. today announced that it has signed a licensing agreement with Interactive Entertainment Media Group Ltd. (IEMG) located in East Essex, England. IEMG operates such premium games sites as and as standalone products and on the Broadband Plus service of ntl Group Ltd., the UK's largest cable operator. According to the terms of the agreement, IEMG will license Stream Theory's patented technology, StreamFlow, a Games on Demand platform enabling retailers, portals, game publishers, and ISPs to securely distribute PC games to broadband consumers under a variety of preview and payment models. IEMG will launch a new service this Fall that will be based on the StreamFlow platform.

"We have been looking for a versatile digital delivery partner for some time and found that Stream Theory offered the most flexible and secure solution for us and our customers and partners," said Tarick Kreimeia, CEO of Interactive Entertainment Media Group.

"Broadband consumers are now able to subscribe to bundled entertainment services being offered by internet service providers and we are privileged to support IEMG as they become a leading ISP game service provider," stated Steig Westerberg, CEO of Stream Theory.

Broadband - PC Games - Digital Distribution

Broadband growth in the UK in early 2006 has continued its rapid upward momentum with 59% more subscribers than a year earlier and growth in the United States was up more than 40% according to a recent Point-Topic report.

According to research from NPD Group, consumer spending on PC Games in 2005 reached $1.4 billion worldwide and, for the first time, accounts for digital distribution as well. "Networked gaming, combined with digital distribution, is helping the gaming industry evolve from its current model, which depends heavily on retail sales, to more diversified models," stated Michael Cai, Director of Broadband & Gaming for market research firm Parks Associates.

About Interactive Entertainment Media Group

IEMG is a UK based Games Service Provider (GSP) specializing in the digital delivery of games, educational and media content.

About Stream Theory

Founded in 1996, Stream Theory, Inc. is a subsidiary of Tadpole Technology plc (LSE: TAD). Stream Theory is revolutionizing the manner in which software is purchased, delivered and accessed by enabling true software-on-demand and virtualization models. Stream Theory has developed a patented framework that is a piracy deterrent for software publishers. The Company is a leading supplier of software streaming technology for delivering and managing software applications worldwide over IP and digital media. Leading software publishers, developers, portals, ASPs, and broadband ISPs have deployed the company's patented technology. Stream Theory is a Microsoft Gold Certified Partner and an IBM PartnerWorld member.

For more information and licensing opportunities:

Stream Theory, Inc. - Media Relations

Ron Koren


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