Airtel Selects PacketVideo for Mobile Multimedia Trial Over GPRS Network.

Business Editors/High-Tech Writers

LONDON & MADRID, Spain--(BUSINESS WIRE)--May 22, 2001

PacketVideo Corp., the recognized leader in wireless multimedia, and Airtel Movil, S.A., Spain's second largest mobile telephone operator and a subsidiary of the Vodafone Group, the world leader in mobile telephones with over 83 million clients in 30 countries, today announced that they are conducting trials of PacketVideo's end-to-end wireless multimedia solution over Airtel's advanced General Packet Radio Service (GPRS) network.

The GPRS trials will test the capabilities of PacketVideo's PVPlatform 2.0 to demonstrate uninterrupted video and audio streaming at the best possible quality over a varying bit rate GPRS network. The trials are based on PacketVideo's FrameTrack technology, which adjusts the frame rate automatically for each individual subscriber based on video quality information detected in real time.

"This trial with PacketVideo is an important step towards ensuring our ability to provide Spain's mobile consumers with the best in mobile information and entertainment services based on our GPRS network," said Fernando Molina Zamora, Head of Centre of Excellence, Airtel Movil. "We selected PacketVideo as our mobile multimedia partner as its technology is mature and fully MPEG-4 compliant. Complying with open standards gives us greater flexibility to work with content and application developers."

PacketVideo's PVPlatform 2.0 is an end-to-end system that enables wireless operators, device manufacturers, and content providers to deliver wireless multimedia. Each of its three dynamic components, PVAuthor(TM), PVServer(TM) and PVPlayer(TM), will be evaluated with Airtel's GPRS infrastructure.

"PacketVideo is pleased to partner with Airtel, particularly as Spain is likely to be one of the first countries to introduce the next generation of advanced mobile telephone networks," said Jim Cook, general manager of PacketVideo Europe. "We look forward to enabling Airtel to move one step closer to being one of the world's pioneering providers of mobile multimedia services."

About PacketVideo

PacketVideo, the recognized leader in wireless multimedia, provides MPEG-4 compliant software that enables the delivery, management and viewing of one- and two-way video, audio and multimedia applications over current wireless networks to mobile devices such as telephones and personal digital assistants. PacketVideo's pioneering end-to-end solution delivers the highest quality multimedia experience possible in every mobile environment, globally.

The company markets its software to wireless operators, wireless device and silicon manufacturers, and content providers to ultimately enable mobile consumers to access a variety of applications, including news and financial stories, sports highlights, music videos, weather and traffic reports, and home or work security cameras, from any location. Mobile consumers can gain access to multimedia content today by visiting PVAirguide(TM) (www.pvairguide.com), the world's first wireless streaming media showcase.

PacketVideo's investors include Comverse Technology (Nasdaq:CMVT), Credit Suisse First Boston, GE Equity (NYSE:GE), Intel Capital (Nasdaq:INTC), Kyocera (NYSE:KYO), Motorola (NYSE:MOT), Philips (NYSE:PHG), QUALCOMM (Nasdaq:QCOM), Siemens' Mustang Ventures, Sony Corp. of America (NYSE:SNE), Sun Microsystems (Nasdaq:SUNW), Texas Instruments (NYSE:TXN), AOL Time Warner (NYSE:AOL), and others. To learn more, visit www.pv.com.

PacketVideo and PacketVideo product names are trademarks or registered trademarks of PacketVideo Corp. All other trade names and trademarks are the property of their holders.