Liberate Announces Dismissal of Bankruptcy Appeal and Effectiveness of Agreement for Sale of North American Business

Liberate Announces Dismissal of Bankruptcy Appeal and
Effectiveness of Agreement for Sale of North American Business 


SAN MATEO, Calif., Jan. 18  /PRNewswire-FirstCall/ -- Liberate Technologies
(Pink Sheets: LBRT), a leading provider of software for digital cable systems,
today announced that on January 14, 2005, the U.S. District Court for the
Northern District of California issued an order pursuant to a stipulation by
the parties dismissing with prejudice Liberate's appeal from the U.S.
Bankruptcy Court for the Northern District of California (docketed as Case No.
04-31394-TEC).

As previously announced, the asset purchase agreement pursuant to which
Liberate has agreed 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 with a minority investment by Cox
Communications, Inc., would only become effective upon the dismissal of
Liberate's bankruptcy appeal.  Accordingly, the asset purchase agreement and
other related transaction documents became effective as of January 14, 2005.

The asset sale is subject to Liberate shareholder approval, Hart-Scott-Rodino
antitrust approval, and other customary closing conditions.

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.

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.

"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 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 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 and the quarterly report on
Form 10-Q for the fiscal quarter ended November 30, 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.

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 94403, ATTENTION: INVESTOR
RELATIONS, OR BY TELEPHONE AT [phone].   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. 

DATASOURCE: Liberate Technologies



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

; or Patrick Nguyen, EVP Corporate Development,

[phone], or , both of Liberate Technologies



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

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