Liberate Technologies
(OTC: LBTE.PK) announced today that its board of directors has declared a
one-time special dividend of $.15 per share payable to stockholders of record
January 9, 2006. The payment date for this dividend has been set for January
16, 2006, and as required by the NASD rules governing special dividends of
this magnitude, the ex-dividend date will be set one business day after the
payment date, or January 17, 2006.
Liberate presently believes the special dividend will not be taxed as a
"dividend" for U.S. federal income tax purposes, but rather will either be
considered a return of capital or capital gain depending on the stockholder's
investment circumstances. However a final determination of the tax treatment
will not be made until after the end of the Company's tax year, May 31, 2006.

Contact:
Greg Wood
Chief Financial Officer
Liberate Technologies,
650-330-8960
gwood@liberate.com