Broadstream and SkyStream Announce Strategic Partnership to Outsource Telco TV.

Business Editors/High-Tech Writers

TelcoTV Conference Expo 2003

LAS VEGAS--(BUSINESS WIRE)--Nov. 13, 2003

New Broadstream Service with SkyStream Mediaplex-20 Can Reduce

Cost to Deploy Telco TV By Up To 50 Percent

Broadstream Communications, Inc and SkyStream Networks(R) today announced an agreement to offer the U.S. telco market an entirely outsourced, multichannel video service comparable to cable or satellite TV.

Broadstream, the industry leader in outsourced IP head-end and video distribution services, and SkyStream, the leader in IP Video delivery, are showcasing the new service here at the TelcoTV 2003 Expo, attended by telecommunications companies interested in delivering the "Triple Play" -- voice, video and data. Visit SkyStream in Booth #100 at the Venetian Hotel in Las Vegas from November 13 through 14 for more information on the service.

The Broadstream service aims to improve the economics of offering the "triple play" for telcos by allowing them to roll-out "triple play" services within 60 days of sign-up and by eliminating capital expenditures for purchasing, operating and maintaining a complete video headend and operations center.

Broadstream completely outsources the head-end infrastructure and content provisioning to provide a groomed, telco-friendly video signal over the Broadstream IP TV Transport Network. Telcos pay an affordable monthly service fee and a start-up fee to get up and running. By eliminating the barriers to entry of purchasing the necessary video headend equipment, the partnership between Broadstream and SkyStream allows telcos to deliver advanced television services over their existing broadband infrastructure at the lowest possible cost.

Telco customers to the Broadstream service would deliver video to their subscribers via a "virtual video headend" powered by Broadstream's state-of-the art video headend that operates both at a centralized national delivery point and at each local edge. Broadstream allows telcos to add a complete package of digital TV programming -- including broadcast network content, specialty channels, movies, sports and local programming -- and a full-suite of digital music programming to existing data and voice services.

Broadstream's edge platform -- located typically at the telcos Central Office -- incorporates SkyStream's Mediaplex-20 Video Delivery Platform -- a multi-channel, high-density switched video headend system that provides advanced encoding with built-in pre-processing, video multiplexing and de-multiplexing, video rate-shaping, transrating, stream replication, DVB to IP gateway and ATM to IP and DVB/ASI conversion, all in a single chassis.

By seamlessly encoding analog local and community based channels with standard video preprocessing, the Mediaplex-20 delivers IP video to the appropriate last mile (ADSL, FTTH, BBFW, CATV). This allows Broadstream and its customers a highly cost-effective way to encode and stream off-air programming as well as a rich array of local programming. The Broadstream local video service can include local network affiliates and local news and sports programming, as well as the community shows and programs that will allow telcos to differentiate their offering from satellite TV services, which do not offer community programming.

"Telcos need to invest in new strategies and architectures for the deployment of integrated video, voice and data services that will raise their revenues per user," said Anthony Bontrager, President and CEO of Broadstream. "The joint solution offered by Broadstream and SkyStream gives service providers a competitive, sustainable and cost-effective video platform that doesn't require them to break the bank on equipment before they start generating revenue from customers."

"The Broadstream service offers telcos the cost efficiencies and service delivery benefits that will allow them to compete with cable and deliver services profitably," said Jim Olson, President and CEO, SkyStream Networks. "By using the Mediaplex-20 as part of a virtual headend system, telco service providers can deliver video to their subscribers in any format that integrates easily with their existing telco network and makes it very simple for them to migrate to future services, like MPEG-4 video delivery, video-on-demand and HDTV, without requiring expensive upgrades."

The Broadstream service will be available in the first quarter of 2004. For additional sales or product information, please contact Jay Stark, Vice President, Sales & Marketing at 206-404-7556 or e-mail [e-mail].

About Broadstream Communications, Inc.

Broadstream Communications, Inc. provides the industry's first all digital head-end and IP transport platform that integrates high-quality, low-bit rate encoding, standard IP protocols for transport and control, and secure satellite based delivery. Broadstream's IP TV is a true finished, outsourced video service platform that enables telecommunications service providers to profitably deliver Internet Protocol (IP) video services over traditional copper, fiber and wireless networks easily and cost effectively. Broadstream is headquartered in Seattle, WA. Additional information can be found at www.broadstream.tv.

About SkyStream Networks

SkyStream provides IP video delivery platforms that enables service providers to transform their business. With SkyStream products, they can better manage their existing services and generate new revenues from broadcast TV, movies on demand and multimedia. By taking IP closer to the edge, SkyStream's software and hardware products dramatically lower costs to provide services and optimize video delivery in any network. SkyStream is the leader in IP video with over 200 customers.

SkyStream Networks' website can be found on the Internet at www.skystream.com.