Broadcom and NDS to Collaborate on Next-Generation Set-Top Box Technologies for Emerging Interactive TV Applications.

Business Editors/High-Tech Writers

IRVINE, Calif.--(BUSINESS WIRE)--May 22, 2001

Chips from Broadcom to Add NDS' Advanced Conditional Access

Technology and Support Consumer TV Systems with

NDS' XTV(TM) PVR Functionality

Broadcom Corporation, (Nasdaq:BRCM), the leading provider of integrated circuits enabling broadband communications, today announced that it will incorporate ICAM (Integrated Conditional Access Module) technology, which is used with NDS Videoguard(TM) Conditional Access systems for pay-TV applications from NDS Group plc (NASDAQ/NASDAQ Europe: NNDS), a News Corporation company (NYSE: NWS, NWS.A), into its next-generation cable and satellite set-top box chips.

Broadcom's set-top box chip family will also support NDS' XTV(TM) software for cable and satellite TV system control including Random Access Scrambled-stream Protocol (RASP) technology. The RASP technology enables personal video recording (PVR) to handle tasks such as fast-forward, pause and rewind on encrypted content. XTV offers greater control over the TV-viewing experience by enabling viewers to pause a live TV program, instantly replay a program being watched, or skip ahead in a recorded program to a favorite scene. RASP enables the efficient retrieval of encrypted content off a hard disk in the set-top box.

"The proliferation of consumer products that offer integrated local storage highlights a developing trend in the electronics industry," said Mike Paxton, Senior Analyst with Cahners In-Stat's Converging Markets & Technologies Group. "'Pockets of storage are beginning to appear throughout the home in response to several factors. One of the most important of these factors is that satellite and cable TV operators sense great revenue potential in interactive applications that offer integrated local storage." The Scottsdale, Ariz., research firm estimates that PVRs will capture the majority of consumer electronics products that integrate hard disk drives, with total worldwide PVR unit shipments forecasted to surpass 28 million by 2004.

"We're optimistic that XTV will become the de facto standard for PVR set-top boxes. Broadcom's leadership in cable and satellite set-top box chips combined with next-generation NDS technologies will enable manufacturers to offer advanced PVR functionality, premium video and broadband services worldwide," said Dr. Jas Saini, Vice President, Consumer Devices, NDS Group plc.

Through NDS' Videoguard, pay-TV operators can offer subscribers greater control over their TV viewing experiences through functions including password protection, spending limits and parental rating controls. Videoguard can also target programming, advertising and promotions to subscribers by geographic area, market segment, business or personal interests. For operators, it supports revenue opportunities by implementing flexible program packaging, pricing tiers, and a range of pay-per-view options. Through greater program choice, it can potentially generate higher revenues per subscriber.

"By adding hardware support for NDS' XTV and RASP technologies into our next-generation set-top box chips, we are optimizing our chips for the rapidly emerging market for interactive PVR applications," said Rich Nelson, Senior Director, Marketing, Broadcom's Broadband Communications Business Unit. "And by integrating the NDS ICAM functionality, Broadcom is supporting the latest technology from the leading Conditional Access system supplier."

Currently, the Broadcom(R) BCM93730 Advanced Home Gateway Set-Top Box Reference Design supports XTV and RASP, as well as NDS smart cards. The major chips in the reference design consist of the BCM3250 set-top box, single-chip front end (dual QAM demodulators, DOCSIS 1.1 capable MAC, DAVIC 1.2/1.5 MAC) and the BCM7030 video decoder chip (dual SD or HDTV, transport, MPEG2 decoder, and 2D/3D graphics). The reference design allows set-top box manufacturers to develop software supporting NDS-based cable and satellite systems for existing and next-generation chips.

About Broadcom

Broadcom Corporation is the leading provider of highly integrated silicon solutions that enable broadband communications and networking of voice, video and data services. Using proprietary technologies and advanced design methodologies, Broadcom designs, develops and supplies complete system-on-a-chip solutions and related applications for digital cable set-top boxes and cable modems, high-speed local, metropolitan and wide area and optical networks, home networking, Voice over Internet Protocol (VoIP), carrier access, residential broadband gateways, direct broadcast satellite and terrestrial digital broadcast, digital subscriber lines (xDSL), wireless communications, System I/O(TM) server solutions and network processing. Broadcom is headquartered in Irvine, Calif., and may be contacted at 949-450-8700 or at www.broadcom.com.

About NDS

NDS Group plc is a leading supplier of open conditional access software and interactive systems for the secure delivery of entertainment and information to television set-top boxes, and personal computers. The company also develops secure datacasting solutions for the distribution of data and multimedia. See www.nds.com for more information.

Safe Harbor Statement of Broadcom Corporation under the Private Securities Litigation Reform Act of 1995:

This release may contain forward-looking statements that are based on our current expectations, estimates and projections about our industry, and reflect management's beliefs and certain assumptions made by us based upon information available to us at this time. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will" and variations of these words or similar expressions are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.

Important factors that may cause such a difference for Broadcom in connection with the BCM93730, BCM3250 and BCM7030 products include, but are not limited to, general economic conditions and specific conditions in the markets we address, including the recent significant economic slowdown in the technology sector and semiconductor industry; the timing and successful completion of technology and product development through volume production; the rate at which our present and future customers and end-users adopt Broadcom's technologies and products in the markets for cable and satellite set top boxes; delays in the adoption and acceptance of industry standards in those markets; the timing of customer-industry qualification and certification of our products and the risks of non-qualification or non-certification; the timing, rescheduling or cancellation of significant customer orders; the loss of a key customer; the volume of our product sales and pricing concessions on volume sales; changes in our product or customer mix; the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; the effectiveness of our expense and produce cost control and reduction efforts; intellectual property disputes and customer indemnification claims and other types of litigation risk; the availability and pricing of foundry and assembly capacity and raw materials; fluctuations in the manufacturing yields of our third party semiconductor foundries and other problems or delays in the fabrication, assembly, testing or delivery of our products; our ability to specify, develop or acquire, complete, introduce, market and transition to volume production new products and technologies in a timely manner; the effects of new and emerging technologies; the effectiveness of our expense and product cost control and reduction efforts; the risks of producing products with new suppliers and at new fabrication and assembly facilities; problems or delays that we may face in shifting our products to smaller geometry process technologies and in achieving higher levels of design integration; the risks and uncertainties associated with our international operations; our ability to retain and hire key executives, technical personnel and other employees in the numbers, with the capabilities, and at the compensation levels needed to implement our business and product plans; changes in our product or customer mix; the quality of our products and any remediation costs; the effects of natural disasters and other events beyond our control; the level of orders received that can be shipped in a fiscal quarter; and other factors.

Our Annual Report on Form 10-K, recent Quarterly Report on Form 10-Q, recent Current Reports on Forms 8-K and 8-K/A, and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Broadcom(R), the pulse logo(R) and SystemI/O are trademarks of Broadcom Corporation and/or its affiliates in the United States and certain other countries. Videoguard and XTV are trademarks of NDS Group plc. All other trademarks mentioned are the property of their respective owners.