Blonder Tongue Interdiction Conference Shows MSOs How to Win the Piracy Game.

Business Editors

OLD BRIDGE, N.J.--(BUSINESS WIRE)--June 7, 2001

Blonder Tongue Laboratories, Inc. (AMEX: BDR) recently hosted its Third Annual Interdiction Conference at the New Brunswick Hilton in East Brunswick, NJ.

Representatives from companies involved in virtually all segments of the cable industry attended this year's Conference, including multiple system franchise operators, programmers, municipalities, universities, cable equipment distributors, and construction companies. Both Interdiction users and potential users participated in the Conference. Among the more notable participants this year were representatives from Cablevision, Comcast and Time Warner.

The annual conference allows Interdiction users and others interested in learning more about the technology to exchange information regarding deployment practices and to discuss the latest applications for the technology with Blonder Tongue and one another. The Conference also allows Blonder Tongue to gather feedback from current users in order to tailor future Interdiction generations to their needs.

The three-day conference kicked off with a tour of the Blonder Tongue manufacturing facility and a trip to see a Yankee game. It continued with sessions all day on Wednesday and finished with a tour of Cablevision of Long Island's facility in Woodbury, NY. Cablevision's Long Island System is the second largest system in the country with nearly 700,000 basic subscribers.

In a departure from the format of prior Interdiction conferences where the majority of the speakers were from Blonder Tongue, this year several operators, including Cablevision, Charter, San Bruno Cable and Stanford University wanted to share their Interdiction success stories. A Cablevision representative made a presentation on how they have utilized Interdiction, indicating Interdiction's ease of use when tiering services, eliminating traps, conforming to "Must Carry" rules, and when on-channel carriage is required.

Charter Communications Corp. permitted Blonder Tongue to provide conference attendees with the tremendous results of Charter's recently concluded Interdiction trial in southern California. Charter deployed Interdiction in a 160-unit apartment building where only 38 of the units were receiving cable services. In the six months since Interdiction was deployed their subscriber base has grown to 93 units and 120 Pay-Per-View events have been purchased compared with just 13 over the entire previous year. This means that the penetration rate for this building alone went from 23% to 58% in just six months and their Pay-Per-View revenue increased nearly tenfold.

Representatives from Showtime Networks and the Pennsylvania Cable & Telecom Association, both members of the Broadband & Internet Security Task Force, spoke on theft of service and security initiatives. Utilizing the numbers published by the NCTA in the 2000 Report on Cable Industry Lost Revenue, they revealed that cable theft represents lost revenue exceeding $6.6 billion annually. This means that 10.96% to 16.07%, or an average of 11.48% of all homes passed by cable are stealing basic service and 6.55% to 11.55%, or an average of 9.5% are stealing premium and pay-per-view service in every cable system. When this data is viewed in terms of "Basic Cable" subscribers, cable theft accounts for 11,109,000 subscribers making theft the third largest MSO in the nation according to Broadcasting and Cable magazine's July 10, 2000 issue.

The table below is an excerpt from the NCTA 2000 Report on Cable Industry Lost Revenue. The report can be viewed in its entirety online at http://www.ncta.com/ and by clicking on "Industry Overview" then "Cable Theft."

Unrealized Revenue and Subscriber Asset Value in the Cable Industry

Fixed Factors:  96.4 Million Homes Passed by Cable
                66.8 Million Basic Subscribers
                49.4 Million Pay Units

                Theft Rate  Units      Retail            Lost Revenue

Basic           11.5%       11.11 mil $30 x 12 months   $4.01 billion
Pay Units        9.5%        9.18 mil $18 x 12 months   $2.02 billion
Pay-Per-View     9.5%        9.18 mil $5 x 12 months    $0.56 billion

Lost Revenue Per Year                                    $6.6 billion

Through operator testimonials, other operators discovered that when deployed, Interdiction has proven to be the most effective weapon against signal theft to date, especially in MDU pocket deployments. This makes the revenue potential for Interdiction pocket deployment only, between $775 million and $1.55 billion.

Blonder Tongue's HomeControl Interdiction equipment is an ideal solution for maximizing subscriber revenues, with one of the highest ratios for return on investment. Equipment loss is eliminated, since with Interdiction there is no operator equipment located inside the subscriber's home. Signal theft is also eliminated, since Interdiction's a la carte signal control capability leaves the "black box" with no unauthorized signals to descramble and eliminates traps altogether. In addition, connects, disconnects, upgrades and downgrades are all remotely controlled via the operator's computer system, allowing for fewer truck rolls and fewer headaches.

Blonder Tongue Laboratories is a designer, manufacturer, and supplier of a comprehensive line of electronics and systems equipment for the franchised and private cable television industries. Founded in 1950, Blonder Tongue offers a comprehensive product line and has grown to be one of the leaders in cable television equipment manufacturing. For more information regarding Blonder Tongue or its products, please visit the Company's Internet site at www.blondertongue.com or contact the Company directly at [phone].

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. The information set forth above includes "forward-looking" statements and accordingly, the cautionary statements contained in Blonder Tongue's Annual Report and Form 10-K for the year ended December 31, 2000 (See Item 1: Business and Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations), and other filings with the Securities and Exchange Commission are incorporated herein by reference. The words "believe", "except", "anticipate", "project", and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. Blonder Tongue's actual results may differ from the anticipated results or other expectations expressed in Blonder Tongue's "forward-looking" statements.