Alcatel and NUKO announce plans to set industry standard for carrier-based MPEG-2 video services.

RICHARDSON, Texas--(BUSINESS WIRE)--Dec. 7, 1994-- Alcatel Network Systems and NUKO Information Systems, Inc. of San Jose, Calif. today announced a memorandum of understanding (MOU) to deliver a series of new MPEG-2 video services, with better picture quality than existing cable television or direct broadcast satellite, over today's telephone network infrastructure. This collaboration will mean the debut of the Motion Pictures Experts Group 2 transport and screen management protocols in the North American telecommunications network.

Under terms of the MOU, carriers selecting Alcatel's Switched Digital Video Network (SDVN(TM)) services platform will have access to both NUKO's industry-leading MPEG-2 digital video encoder and decoder (codec) technology and Alcatel's 1000 AX ATM (asynchronous transfer mode) video multiplex and router technology for the management of video and multimedia transmission, storage, multi-queuing and multi-access distribution.

"Our work with Alcatel will allow us to build on our joint experience in designing and manufacturing video transmission and distribution equipment that will accelerate dramatically the promise of the information superhighway," said Bob Kesav Kondamoori, president and CEO of NUKO.

Alcatel already has achieved notable SDVN success with Pacific Bell through the Cinema of the Future(SM) network and high-definition television services. Activities undertaken by Alcatel and NUKO over the last several months will culminate in the first quarter of 1995 with a commercial service market trial of distance learning and television trunking using the ATM switching, store and forward, and MPEG-2 technologies. The Stanford University Instructional Television Network has used the MPEG-2 system since late September. And plans are underway for a San Francisco-area cable television system to receive MPEG-2 encoded feeds of local over-the-air stations via fiber from the city's central antenna location (Mt. Sutro) to its headend.

Alcatel and NUKO are designing this MPEG-2-based services solution to integrate with fiber optic SONET (synchronous optical network), ATM, and high-capacity copper and coax facilities. Alcatel and NUKO will develop jointly a series of carrier services that will allow for the digital transmission of video at quality levels determined by the carriers' customers.

"We believe this MPEG-2 services option to the SDVN will provide an economical way for carriers around the country to deliver the premium- quality video entertainment and information programming to their customers via a common infrastructure," said Tim Phillips, Alcatel assistant vice president for Carrier Services Marketing and Business Development. "With this agreement, we intend to make the market for MPEG-2 video delivery services in this country and usher in the Video Communications Age."

The addition of MPEG-2 capability allows Alcatel to provide a complete line of video and multimedia products and support services for carriers. The SDVN product family includes SONET transport systems, ATM video routers, and third party video servers (such as EMC Corporation) to interconnect customer premises and video programming providers via the carrier central office network. Alcatel SDVN software integrates with carriers' service control programs to meet customer ordering, maintenance and billing requirements. Potential consumer applications include: distance learning networks, broadcast news backhaul and television trunking, video information provider services, medical imaging services, direct broadcast satellite and multimedia interactive services.

"The Internet already uses MPEG-1 for interactive video and multimedia exchanges. MPEG-2, SONET, ATM routing and network storage expand the quality and timeliness of these exchanges and allow today's video providers to deliver high-quality digital images over the current telephone network," said Howard Gunn, vice president of Marketing for Alcatel Network Systems.

Alcatel Network Systems designs, manufactures and services a full line of voice, data, video and multimedia products, including ATM switching systems, digital cross connects, fiber optic transmission systems, optical amplifiers, microwave radios, video codecs, and network management systems. These products are used in high performance networks throughout the telecommunications, broadcast and utility industries. The parent company, Alcatel, is the largest manufacturer of communications equipment worldwide, with plants in 32 countries and sales in over 125 countries.

NUKO Information Systems, Inc. (OTC: NUKO) designs, manufactures and services a full line of store-forward and real-time multi-media hardware and software products. These products are used in corporate local area networks, wide area networks and high performance telecommunications, broadcast and utility networks. NUKO is a rapidly growing international company with development and marketing offices in USA, Japan and India.

CONTACT: Alcatel Network Systems

Michael Newsom, 214/996-7896