Interact-TV Inc. announced a partnership with TotalQ Pty Ltd. to establish a worldwide sales channel of authorized distributors and expand dealers of Interact-TV's Telly product line in the US market. This partnership also allows integration of the Telly product line with TotalQ's HAL lighting control and distributed AV products providing a complete media server and automation solution. HAL is Australia's number one distributed audio visual brand and in recent years has also begun to carve out a significant share in the automated lighting sector of the intelligent home markets with its simplistic, yet extremely functional products.

Interact-TV Inc. announced the restructuring of its sales channel by discontinuing direct sales and giving sales exclusivity to its growing network of dealers, custom installers and distribution partners throughout North America. The change will give greater sales support to customers and enable dealers to build their own businesses for long-term success. Interact-TV will commit its internal sales efforts to channel development, giving dealers the tools, product expertise and technical support necessary to provide better service to new and existing customers. This will further enable dealers to build their own successful businesses. This new approach is a positive move by Interact-TV in how it relates to its dealers and custom installers.

Interact-TV Inc. announced 1080 video output and DVI/HDMI support across its entire product line of Telly Home Entertainment Servers(TM) and TellyVizion(TM) Playback Units. With HDTV sales in the US expected to reach 180 million by 2010, Interact-TV supports consumers by offering a complete set of HD output formats across the Telly product line. Interact-TV now offers DVI/HDMI connections for 1080p as well as 720p and 1080i Component video output. This allows Telly products to upscale 480i (standard TV) and DVDs to full HD resolution with progressive scan output. Telly products are compatible with most satellite and digital cable boxes, analog cable and digital antenna (ATSC).