`Pay-Per-View' Potential Not Just In Movies Says New Pace Micro Technology Research.

Business Editors

BOCA RATON, Fla.--(BUSINESS WIRE)--April 11, 2001

US network operators have major revenue opportunities for `pay-per-view' services beyond just movies, according to consumer research conducted by Gallup for Pace Micro Technology. While movies remain the most popular type of pay-per-view programming, the research suggests strong potential for pay-per-view services covering education, music events, sports, and news.

The Pace research found that 75 percent of respondents would be likely to purchase movies on a pay-per-view basis. More than half (56%) have an interest in educational programming, music events (50%), and sports events (50%). Approximately 42 percent would pay to see news, and 27 percent would buy video games on a pay-per-view basis.

Interestingly, younger adults are more likely to buy in each type of programming; however, the difference is especially pronounced for video games. Four in 10 adults (41%), 18 to 34 years old, would pay for video games compared to 30 percent of those 35 to 49 year olds, and 14 percent age 50 or older. In the other programming categories, 18 to 34 year olds are the most likely to buy movies (88%), music events (59%), and sports events (60%).

Along gender lines, men (60%) are more likely than women (41%) to be interested in pay-per-view sports. Women, on the other hand, would be more interested than men in paying to see educational programming (60% and 51% respectively), as well as news (45% and 39% respectively), and music events (52% and 48% respectively).

According to Neil Gaydon, president of Pace Micro Technology Americas, new technologies being introduced are helping to rapidly expand the range of additional revenue streams open to network operators. Of key importance to the pay-per-view market is the introduction of digital set-top boxes with integral hard disk drive. This will enable digital TV subscribers to download and store their pay-per-view content on their set-top box and play it when they are ready.

"Traditional views state that consumers will only pay for additional services such as first run movies or major sporting events. Our research strongly suggests that with the right quality of programming, consumers would be likely to select a far wider range of services, such as news and education.

"It is clear that digital television is not simply changing viewing habits, it is also leading a quiet revolution in the way in which consumers regard TV and, in particular, the ways in which they would be willing to pay for these services."

About Pace Micro

Pace Micro Technology plc is a pioneer of digital technology for the home and has helped build the global market for pay television services. Using this expertise, Pace is evolving the set-top box into a sophisticated home gateway to enable revenue-generating services for TV and the networked home. In this networked home, the Pace home gateway is the portal for entertainment and interactive communications around the home and with the outside world.

Pace analog and digital technology has been installed in over 13 million homes worldwide since it was founded in 1982. The company is now actively involved in all digital platforms - satellite, terrestrial, cable, wireless and xDSL - through relationships with broadcasters, network operators and technology partners in the UK, USA, Europe, Latin America, Australasia and the Far East. These achievements were made possible through the commitment of Pace's 1,300 strong workforce, over a third of whom are research and development engineers, dedicated to the development of digital technology for the home and small and home office markets.

Pace's head office is in Shipley West Yorkshire, with further offices in Bracknell, Cambridge, the USA and Hong Kong. The company's shares are traded on the London Stock Exchange (PIC) (LSE:PIC). Pace's U.S. operations are based in Boca Raton, Fla. For further information, please visit Pace's web site at http://www.pacemicro.com.

Notes to Editors

Copyright

The Pace Report 2001 is published by Pace Micro Technology plc, Victoria Road, Saltaire, Shipley, West Yorkshire, BD18 3LF, United Kingdom. Telephone [phone]. Copyright 2001 Pace Micro Technology plc. All rights reserved. Reproduction in part or whole, without the written permission of the publishers is strictly prohibited.

Any mention of this research must credit The Pace Report 2001 or Pace Micro Technology.