Indy 500 Announces Expanded Deal With Princeton Video Image

    LAWRENCEVILLE, N.J.--May 24, 2001--Princeton Video Image, Inc. , the Emmy Award winning, global leader in virtual advertising and imaging solutions for television, today announced that the Indy 500 will make greater use of graphics produced by Princeton Video Image for the 85th running of the world's most popular motorsports event.
    This Sunday's race seen on ABC at 11:00 am est. will feature traditional virtual advertising for carmaker Oldsmobile, but will also use expanded packages of virtual enhancements that create an enriched viewing experience for the broadcast audience. Such virtual enhancements include:

--	Virtual radar gun will be seen as a burnished metal object on the wall at turn three that will register the speed of select cars.
--	An effect in pit road will identify the pit box for leading cars by a blinking color with a picture of the driver posted on the track surface next to the car.
--	The winning driver will have their picture on the start/finish line on the final lap.

    These effects are part of a campaign to increase the driver's visibility in the race. Princeton Video Image has been supplying services to the Indianapolis motor Speedway since 1997 and to the Indy Racing League since 1999.

    About Princeton Video Image, Inc., (www.pvi-inc.com)

    The global leader in virtual advertising solutions for television, PVI has developed and marketed a real-time video insertion system. This system, through patented computer vision technology, places computer-generated electronic images into television broadcasts of sporting events as well as other programming. These electronic images range from simple corporate names and logos to sophisticated 3-D images and animated effects. PVI has provided video insertion services for thousands of live telecasts worldwide, including broadcasts of Major League Baseball, National League Football, professional soccer, motor sports, and other live events. PVI is the exclusive virtual advertising provider for NFL International broadcasts. Beyond sports venues, PVI's virtual imaging technology provides branding-oriented program enhancements for The Early Show on CBS. The Company is headquartered in Lawrenceville, New Jersey, with offices in New York City, Brussels and Johannesburg, as well as licensees' offices in Madrid, Seoul and Mexico City.

    Any statements contained in this press release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties including, but not limited to, those relating to market acceptance, dependence on strategic partners and third party sales, contractual restraints on use of PVI's technology, a rapidly changing commercial and technological environment, competition, possible adverse regulations, need for additional financing, intellectual property rights and litigation, and other risks identified in PVI's filings with the Securities and Exchange Commission. Actual results, events or performance may differ materially. PVI undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.