1

                                                                    EXHIBIT 99.1

                                                                  [INTERVU LOGO]

NEWS RELEASE
- --------------------------------------------------------------------------------
For further information:

                      ANJEANETTE RETTIG
                      INTERVU INC.
                      858-623-8400 X134
                      ARETTIG@INTERVU.NET

             MICROSOFT INVESTS $30 MILLION IN INTERVU TO ACCELERATE
                          BROADBAND DELIVERY SERVICES

 COMPANIES FORM STRATEGIC ALLIANCE TO BRING HIGH QUALITY BROADBAND TO CONSUMERS

SAN DIEGO, CA, DECEMBER 20, 1999 - INTERVU Inc. (Nasdaq: ITVU), the leading
service provider for Internet audio and video delivery solutions, today
announced a strategic partnership with Microsoft to expand its broadband
streaming media network based on the Windows Media platform. The companies also
announced that Microsoft will invest $30 million in INTERVU.

        "INTERVU is a pioneer in distributing streaming media content, and we
share a vision of bringing broadband into the mainstream for millions of
consumers," said Will Poole, general manager, Streaming Media Division at
Microsoft. "This alliance will significantly advance the quality, broad
availability, and efficient delivery of broadband Windows Media content."

        INTERVU and Microsoft are aligning to rapidly develop an infrastructure
that is cost-effective for the development of Internet broadband audio and video
delivery. Content providers will receive forward-based pricing combined with a
quick deployment of edge media delivery centers located at high-speed access
points. In addition, the cost-effective Windows Media solution will serve as a
platform for building value-added applications such as targeted audio/video
advertising insertion, pay-per-view, and digital rights management, creating new
business opportunities for content providers.

        "Our strategic alliance with Microsoft is a strong endorsement of
INTERVU's strategy to build the most advanced broadband network dedicated to
multimedia content," said Harry Gruber, chairman and chief executive officer of
INTERVU. "We will use this investment to expand our broadband network
capabilities and develop value-added applications to provide our customers with
an end-to-end solution for streaming media management and delivery at a price
designed to jump start the broadband streaming media industry."



                                    - more -
   2

                                      - 2 -

        INTERVU provides content providers and corporations with turnkey audio
and video delivery services over a proprietary network built on the Internet.
INTERVU's patented network consists of distributed media delivery centers (MDCs)
that are co-located across multiple Internet backbones for optimal Internet
distribution and reach. With Microsoft's investment, INTERVU will co-locate and
interconnect its MDCs on cable, wireless and digital subscriber line (DSL)
networks and in other "edge" locations in order to reduce, and eventually
eliminate, egress distribution costs for its content provider customers. This
regional expansion of INTERVU's network will also offer broadband service
providers and their subscribers with the highest quality audio/video experience
possible by bypassing Internet congestion through intelligent network delivery.

        Microsoft will purchase shares of a new series of INTERVU senior
convertible preferred stock for $30 million. The preferred stock may be
converted into common stock at a conversion price of $90.00 per share, which
represents a 27% premium over the previous 20-day average closing price of
INTERVU's common stock. The terms of the security specify an annual dividend
rate of 6.5% payable quarterly in stock or cash. Microsoft will receive a
five-year warrant to purchase 60,000 shares of INTERVU's common stock with an
exercise price of $90.00 per share.

ABOUT INTERVU INC.

INTERVU provides Web site owners and content publishers with services for the
delivery or "streaming" of live and on-demand video and audio content over the
Internet. INTERVU's services automate the publishing, distribution and
programming of video and audio content. INTERVU uses a scalable, patented
distribution network comprised of servers strategically located in major
Internet hosting centers. INTERVU's customers use its video and audio
distribution services to transmit entertainment, sports, news, business
communications, advertising and distance learning content. INTERVU's current
customers include CNET (Nasdaq: CNET), CNN (NYSE: TWX), Excite@Home (Nasdaq:
ATHM), House of Blues, Microsoft (Nasdaq: MSFT), MSNBC, NBC (NYSE: GE),
Onradio.com, Quokka Sports (Nasdaq: QKKA), Saatchi & Saatchi (NYSE: SSA) and
Turner Broadcasting. Additional information can be found at www.intervu.net.

                                      # # #

Except for the historical information contained herein, this news release
contains forward-looking statements that are subject to risks and uncertainties
that might cause actual results to differ from those foreseen, including the
market acceptance for INTERVU's specialized services, the growth of the market
for streaming media services, INTERVU's history of operating losses and expected
future losses, technological change and intense competition, as well as the
other risks detailed from time to time in INTERVU's SEC reports, including the
report on Form 10-K filed on March 30, 1999.