Liberate Announces Agreement for Sale of North American Business to Double C Technologies, A Joint Venture of Comcast and Cox

Liberate Announces Agreement for Sale of North American Business
to Double C Technologies, A Joint Venture of Comcast and Cox
Expected Proceeds Approximately $82 Million 


SAN MATEO, Calif., Jan. 10  /PRNewswire-FirstCall/ -- Liberate Technologies
(Pink Sheets: LBRT), a leading provider of software for digital cable systems,
today announced it had reached agreement to sell substantially all of the
assets of its North American business to Double C Technologies, LLC, a joint
venture majority owned and controlled by Comcast Corporation
(NASDAQ:CMCSANASDAQ:CMCSK) with a minority investment by Cox Communications,
Inc.

Under the terms of the agreement, the joint venture will receive substantially
all of the assets, including patents and other intellectual property, and will
assume certain limited liabilities related to Liberate's North American
business.  Liberate will receive cash consideration of approximately $82
million. The parties will cross-license technology and intellectual property to
one another following the closing for purposes of the continued conduct of
their respective businesses.

Liberate is developing a software platform which is intended to provide cable
operators with a flexible platform to add new digital cable products and
applications.  This platform will become increasingly important as digital
cable products continue to evolve and interactive features become more
widespread.

"Comcast believes strongly in the future of interactive television and the need
for customers to have TV on their terms.  This acquisition, along with our
earlier investment in Guideworks and our innovative video on demand platform,
will enable Comcast to move faster toward creating a more interactive
television experience," said Steve Silva, Comcast Executive Vice President, New
Business Development.  "Purchasing Liberate's North American assets will give
us greater control over the software platform that will help drive new features
that distinguish us from other providers as well as position us to be able to
deliver new services that will be enabled by OCAP compliant software in the
future."

"The purchase by industry leaders Comcast and Cox of our North American
business demonstrates the strategic importance of the technology we have
designed and built," stated David Lockwood, Chairman and CEO of Liberate
Technologies.  "Over the past two years, our management team has successfully
restructured our operations and resolved a number of liabilities. This
transaction is a strong validation of our work to deliver value to
shareholders."

As part of the transaction, the joint venture will make employment offers to
approximately 130 employees, primarily located in London, Ontario, Canada.
Liberate will retain its European business and will continue to service its
European customers.  In addition, concurrently with the effectiveness of the
acquisition agreement, David Lockwood, the Chairman and CEO of Liberate
Technologies, is entering into a voting agreement with the joint venture, under
which he is agreeing to vote all shares of Liberate stock beneficially owned by
him, comprising approximately 12% of the total outstanding shares of Liberate,
in favor of the transaction.

The agreement will not become effective until the dismissal of Liberate's
bankruptcy appeal, which Liberate has agreed to actively pursue. To that end,
today Liberate is filing a motion in the U.S. District Court for Northern
California to dismiss the appeal of its bankruptcy case dismissal.  The
agreement is also subject to Liberate shareholder approval, Hart-Scott-Rodino
antitrust approval, and other customary closing conditions.

Conference Call

Liberate has scheduled a conference call at 2 p.m. Pacific time January 10 to
discuss its second quarter fiscal 2005 financial results.  The call-in number
is 888-882-0142. A replay of the call will be available until January 17 on
either 402-977-9140 or 800-633-8284, reservation code 21226844. The conference
call can also be accessed via live webcast at Liberate's website
(http://www.liberate.com/) and will remain available for replay.

About Liberate Technologies

Liberate Technologies is a leading provider of software for digital cable
systems.  Based on industry standards, Liberate's software enables cable
operators to run multiple services -- including high-definition television,
video on demand, and personal video recorders -- on multiple platforms.
Headquartered in San Mateo, California, Liberate has offices in Ontario,
Canada, and the United Kingdom.

NOTE:  Liberate and the Liberate design are registered trademarks of Liberate
Technologies.  Other product names used in association with these registered
trademarks are trademarks of Liberate Technologies.

About Comcast Corporation

Comcast Corporation (http://www.comcast.com/) is the nation's leading provider
of cable, entertainment and communications products and services. With 21.5
million cable customers and more than 6.5 million high-speed Internet
customers, Comcast is principally involved in the development, management and
operation of broadband cable networks and in the delivery of programming
content.

The Company's content businesses include:  Comcast SportsNet, E! Entertainment
Television, Style Network, The Golf Channel, Outdoor Life Network, G4techTV and
International Channel Networks as well as a minority investment in TV One. The
Company also has a majority ownership in Comcast-Spectacor, whose major
holdings include the Philadelphia Flyers NHL hockey team, the Philadelphia
76ers NBA basketball team and two large multipurpose arenas in Philadelphia.

About Cox Communications, Inc.

Cox is a multi-service broadband communications company with approximately 6.6
million total customers, including approximately 6.3 million basic cable
subscribers.  The nation's third-largest cable television provider measured by
basic subscribers, Cox offers both analog cable television under the Cox Cable
brand as well as advanced digital video service under the Cox Digital Cable
brand.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995

Those statements above that involve expectations or intentions (such as those
related to expectations concerning the granting of the motion to dismiss the
bankruptcy appeal or the closing of the transactions contemplated by the
announced agreement) are forward-looking statements, within the meaning of the
U.S. securities laws, that involve risks and uncertainties and are not
guarantees of future performance.  You are cautioned that these statements are
only predictions, and that forward-looking statements are subject to a number
of risks, assumptions and uncertainties that could cause actual results to
differ materially from those projected in such forward-looking statements.
These risks, assumptions and uncertainties include, but are not limited to:
future decisions by the U.S. District Court for the Northern District of
California (including with respect to dismissal of the appeal of Liberate's
bankruptcy dismissal), the SEC or other governmental or regulatory bodies; the
vote of Liberate's stockholders; business disruption resulting from the
announcement of the asset sale; uncertainties related to litigation; economic
and political conditions in the U.S. and abroad; and other risks outlined in
Liberate's filings with the Securities and Exchange Commission, including the
annual report on Form 10-K for the year ended May 31, 2004.  All forward-
looking statements are only as of the date they are made and Liberate disclaims
any intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.

THIS PRESS RELEASE IS BEING FILED PURSUANT TO RULE 14A-12 UNDER THE SECURITIES
EXCHANGE ACT OF 1934.

LIBERATE WILL FILE A PROXY STATEMENT AND OTHER RELEVANT DOCUMENTS CONCERNING
THE PROPOSED TRANSACTION WITH THE SECURITIES AND EXCHANGE COMMISSION. 
INVESTORS ARE URGED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE AND
ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ON THE PROPOSED TRANSACTION.  YOU WILL BE ABLE TO OBTAIN
THE DOCUMENTS FILED WITH THE SEC FREE OF CHARGE AT THE WEB SITE MAINTAINED BY
THE SEC AT WWW.SEC.GOV.  IN ADDITION, YOU MAY OBTAIN DOCUMENTS FILED WITH THE
SEC BY LIBERATE FREE OF CHARGE BY REQUESTING THEM IN WRITING FROM LIBERATE,
2655 CAMPUS DRIVE, SUITE 250, SAN MATEO, CA 04403, ATTENTION: INVESTOR
RELATIONS, OR BY TELEPHONE AT 650-645-4000.  LIBERATE AND ITS DIRECTORS AND
EXECUTIVE OFFICERS MAY BE DEEMED TO BE PARTICIPANTS IN THE SOLICITATION OF
PROXIES FROM LIBERATE'S STOCKHOLDERS.  A LIST OF THE NAMES OF THOSE DIRECTORS
AND EXECUTIVE OFFICERS AND DESCRIPTIONS OF THEIR INTERESTS IN LIBERATE IS
CONTAINED IN LIBERATE'S PROXY STATEMENT DATED SEPTEMBER 13, 2004, WHICH IS
FILED WITH THE SEC.  STOCKHOLDERS MAY OBTAIN ADDITIONAL INFORMATION ABOUT THE
INTERESTS OF THE DIRECTORS AND EXECUTIVE OFFICERS IN THIS TRANSACTION BY
READING THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE.

Contact:  Greg Wood, Chief Financial Officer, [phone], or , or Patrick
Nguyen, EVP Corporate Development, [phone], or , both of Liberate
Technologies; or Tim Fitzpatrick, Corporate Communications of Comcast
Corporation, [phone], or ; or David Grabert, Director of Media
Relations of Cox Communications, [phone], or . 

DATASOURCE: Liberate Technologies



CONTACT:  Greg Wood, Chief Financial Officer, [phone], or

, or Patrick Nguyen, EVP Corporate Development,

[phone], or , both of Liberate Technologies; or

Tim Fitzpatrick, Corporate Communications of Comcast Corporation,

[phone], or ; or David Grabert, Director of

Media Relations of Cox Communications, [phone], or





Web site:  http://www.comcast.com/

Web site:  http://www.liberate.com/

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