Auroras and Verimatrix Partner to Deploy Encryption, Service Protection and Forensic Watermarking Technology Throughout the Auroras IPTV Network.

KALISPELL, MT & SAN DIEGO -- Auroras Entertainment, LLC and Verimatrix, Inc. announced today that they have partnered to deploy Verimatrix's industry leading content security and encryption technologies, as well as VideoMark(R) forensic watermarking technology, to protect both live broadcast and Video on Demand (VOD) television programming throughout the Auroras IPTV nationwide network.

Auroras, a leader in IPTV content, infrastructure and services, provides an end-to-end IPTV service, which will utilize the Verimatrix Content Authority System (VCAS) to protect content from the Auroras Master Headend through decoding and playback on a consumer set-top box (STB). Encryption is the only fixed component within the Auroras IPTV network. Under the agreement, Auroras will secure all live and on-demand content with Verimatrix 128 bit AES encryption and ultimately supply user-based watermarking through VideoMark. Forensic watermarking enables content providers and system operators to track down security breaches to individual STBs quickly and precisely.

"Content protection is an increasingly important issue for all carriers in the IPTV business due to the potential loss of revenue from theft. Integrating a comprehensive content protection solution throughout Auroras' network is a critical step in providing its customers with a content edge in their markets," said Steve Hawley, analyst at Advanced Media Strategies. "This partnership strengthens the value proposition of both companies as the promise of IPTV becomes reality."

"Content providers require complete, thorough, and advanced content protection. Verimatrix not only provides an industry leading encryption system for the Auroras IPTV network, but also provides tools such as advanced clone detection and user-based watermarking that provide the most comprehensive forensic tools available for video entertainment networks," said Mike Kazmier, president and chief technology officer at Auroras. "Verimatrix approached Auroras with the intention to be more than a vendor. They provided a complete partnership approach to one of the most critical components within the Auroras IPTV network. This partnership, combined with Verimatrix's industry leading technology and strong industry reputation, were all reasons why Auroras believes in the Verimatrix solution."

Verimatrix developed VCAS as a software-based content security solution built on the principles of Public Key Infrastructure (PKI) and X.509 digital certificates. VCAS enables devices and systems within media delivery networks to be encrypted and authenticated in order to identify security breaches and unauthorized network users.

"Through aggregation of high quality content and superior infrastructure technology, Auroras enables broadband operators of all sizes to bring the benefits of IPTV to its customers. Auroras is the first and only aggregator of its kind to incorporate both our encryption and VideoMark user-based watermarking. We are thrilled to be a part of the solution offered to these pioneering IP operators," said Steve Oetegenn, EVP of Global Sales and Marketing for Verimatrix.

About Auroras

Auroras is a customer-focused, end-to-end IPTV service provider dedicated to ensuring that smaller broadband service providers can compete -- and win -- in the race to offer advanced television entertainment services. By leveraging advanced Edge technologies, the Auroras service platform delivers to its customers all of the tools for the On-Demand world. More information about Auroras can be found at www.auroras.tv.

About Verimatrix

Founded in 1999, Verimatrix is the leading provider of digital content protection solutions with a global customer base including leading telecommunications providers in Europe, North America and Asia. Verimatrix offers provider approved, carrier-class solutions specifically for today's bi-directional IPTV networks. Through the seamless integration of patented digital watermarking technology into its best-of-breed encryption solutions, Verimatrix protects content and revenue streams, as well as detects digital piracy wherever it occurs within the distribution chain. Verimatrix has excellent relationships with the major Hollywood studios by providing valuable anti-piracy solutions for the fight against rampant digital piracy. For more information, please visit www.verimatrix.com.

Disclaimer:

This press release contains forward-looking statements that are based upon management's current expectations and are inherently uncertain. Forward-looking statements are based upon information available to us as of the date of this press release and we assume no obligation to revise or update any such forward looking statement to reflect any event or circumstance after the date of this release. Actual results and the timing of events could differ materially from current expectations.