Liberate Announces Reorganization Under Chapter 11 of the U.S. Bankruptcy Code to Resolve Certain Liabilities

Liberate Announces Reorganization Under Chapter 11 of the U.S.
Bankruptcy Code to Resolve Certain Liabilities
Liberate Intends to File Plan Providing for Payment of Valid Claims in Full and
No Change to Stockholder Interests 


SAN MATEO, Calif., April 30  /PRNewswire-FirstCall/ -- Liberate Technologies
(Pink Sheets: LBRT), a leading provider of software for digital cable systems,
announced today it had filed a voluntary petition for reorganization under
Chapter 11 of the U.S. Bankruptcy Code to resolve certain outstanding
liabilities, reduce costs and strengthen its financial position.

Liberate intends to promptly file a Plan of Reorganization in the U.S.
Bankruptcy Court in Delaware providing for the payment of 100% of valid
creditor claims.  Stockholder interests will not be impacted by the Plan.
Liberate hopes to emerge from bankruptcy within a period of 4-6 months. During
the bankruptcy process, Liberate expects to operate its business in the normal
course, including continued compliance with active customer and vendor
contracts, and service and support of its cable customers and their
subscribers.

As of February 29, 2004, Liberate had cash and short-term investments of $222.3
million and $10.9 million in restricted cash held as security for office
leases.

"We believe this filing is in the best interests of our stockholders, employees
and customers," said David Lockwood, Chairman and CEO of Liberate. "During the
reorganization process, we will continue to execute on our business plan,
investing in the development of our technology platform and delivering our
products and services to existing customers.  In addition, we will continue to
aggressively market our software to new customers in order to grow revenues."

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.

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

Those statements above that involve expectations or intentions (such as those
relating to the filing under Chapter 11 of the U.S. Bankruptcy Code, the time
that a Chapter 11 case would take to complete, the result of a Chapter 11 case,
any savings or other effects arising from such a filing, future business or
financial performance, or anticipated corporate or commercial activities) are
forward-looking statements and are not guarantees of future performance. Actual
results may vary materially due to the uncertain market for interactive
television services, dependence on a limited number of cable network operators,
business disruption resulting from Liberate's restatement and related
litigation, necessary adjustments related to recent restructuring, other
uncertainties related to litigation and the Chapter 11 filing, and other risks
outlined in Liberate's filings with the Securities and Exchange Commission.

  Contact:
   Greg Wood
   Chief Financial Officer
   Liberate Technologies
   650-645-4003
   

   Mark Scadina
   VP & General Counsel
   Liberate Technologies
   650-645-4005
   

DATASOURCE: Liberate Technologies



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

, or Mark Scadina, VP & General Counsel, [phone], or

, both of Liberate Technologies



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

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