Arroyo Appoints Top Cable Executive Kim D. Kelly as President & Chief Executive Officer.

PLEASANTON, Calif. -- Former Insight Communications Officer Joins Arroyo To Accelerate Delivery of Advanced Video Services for Cable Operators and Broadband Service Providers

Arroyo Video Solutions, Inc., leading the industry in developing a unique platform for delivering next generation video services, today announced the appointment of top cable industry executive Kim D. Kelly to the position of president & CEO. Founding CEO of Arroyo, Paul Sherer, will become executive vice president of technology and chief technology officer.

Kelly brings to Arroyo nearly 15 years of experience in the top ranks of the cable industry. Prior to joining Arroyo, Kelly served as president and COO of Insight Communications Co., the ninth largest U.S. MSO, having joined the company in 1990 as executive vice president and chief financial officer. During her tenure the company grew from 114,000 to nearly 1.4 million subscribers, and led the industry in deploying new applications including interactive television and video-on-demand (VOD).

"As the content partners drove cable's expansion in the '80s and the '90s, technology partners will fuel revenue growth for the industry in the next decade," said Kim Kelly. "By leveraging advanced technologies to accelerate the introduction of revenue rich applications, Arroyo is going to be a leading partner for the cable industry."

"Led by Paul Sherer and Drew Major, the technical team at Arroyo is absolutely world-class," she added, "and the company's capability to deliver new applications, industry leading video performance and massive scalability based on 100 percent open standards technology is exactly what video operators are asking for. What DOCSIS did for data, Arroyo will do for video."

"Kim Kelly has an impressive track record in the cable industry and has proven her ability to pinpoint new services that excite and attract cable subscribers. With her experience, stature and knowledge of the video services market, we are confident that she will lead Arroyo to become a significant force enabling cable companies and broadband operators to drive revenues and growth from advanced video services," Paul Sherer said.

Arroyo's Video Services Platform enables cable companies and broadband operators to dramatically accelerate the delivery of value-added applications and services, such as VOD, transactional advertising, e-commerce and other iTV applications, to their digital subscribers. Arroyo's platform offers order of magnitude improvements in performance and scalability for video intensive applications while using industry-standard hardware and software. With a compelling value proposition that combines new services, open standards, scalability and cost-effectiveness, Arroyo enables video providers to deploy next generation video services broadly, rapidly and profitably.

Arroyo's co-founders, Paul Sherer and Drew Major, are technology experts whose contributions to data networking have helped shape the industry. Sherer holds 30 patents in the areas of networking and played a key role in architecting several technologies of industry-wide significance while serving as CTO at 3Com. As one of the original founders of Novell and developer of Novell's NetWare LAN OS, Major is often referred to as the "father of the network operating system" and was inducted into the Computer Hall of Fame in 1999.

About Arroyo Video Solutions

Headquartered in Pleasanton, California, Arroyo is a privately held company funded by leading Silicon Valley venture firms DCM - Doll Capital Management and Foundation Capital; and by Time Warner Investments and Comcast Interactive Capital, the investment arms of two of the nation's largest media companies. For more information, please visit http://www.arroyo.tv.