C-COR Debuts 'VOD in a Box' for Operators Launching on Demand in Smaller Markets.

New Video Server Removes Cost Barrier and Leverages Proven Platform for Delivery of VOD, nPVR, Switched Digital, DPI, and Advanced Advertising

STATE COLLEGE, Pa. -- C-COR Incorporated (NASDAQ:CCBL) today introduced the newest addition to the n5[TM] product suite, the n5C compact server, which enables network service providers serving smaller opportunities to economically deploy a complete set of next-generation On Demand applications. Operators that serve smaller markets or communities will now be able to launch video on demand (VOD), digital program insertion (DPI) and advanced advertising, network personal video recording (nPVR), and switched digital video using a unified low cost video server platform. The new video server leverages proven third generation server technology and On Demand application features to offer a competitive entry point for operators serving communities of 16,000 customers or less. The server is available for deployment in Q4 2006.

C-COR's n5C employs components of the company's proven n5 On Demand server platform, including the nABLE[TM] complete back office management system, and customizes it to meet the specific demands faced by smaller markets. The lower power consuming footprint offers an expandable capacity of 1500 hours of storage and 960 streams to keep up with customer demands and growing content libraries. The server offers support for both MPEG-2 and MPEG-4.

"Independent cable operators that service rural and smaller communities are facing enormous competitive pressures from satellite and telco providers," said Matthew M. Polka, president and CEO, American Cable Association. "To stay competitive, small market operators need to differentiate themselves with the latest video services and technology, but at a cost point that makes sense for the size of their markets. We're pleased the industry is targeting products that will benefit the independent cable television business and the 8 million subscribers they serve across the U.S."

"C-COR has long valued its partnerships with smaller broadband operators in successfully delivering profitable advertising and On Demand services," said Michael Pohl, president, Global Strategies, C-COR. "We use that experience to address the architecture and subscriber demands of smaller markets so they can take advantage of next-generation services such as switched digital video, nPVR, and advanced advertising at a price point that maximizes their return on investment."

"There are hundreds of small to mid-sized markets in the U.S. today serving 5,000 to 16,000 subscribers which historically have not been able to economically offer competitive On Demand services to their customer base," said Basil Badawiyeh, vice president of On Demand Strategy, C-COR. "This platform is specifically designed to address such markets while maintaining a clear growth path to accommodate their competitive environment."

The n5C product suite is part of C-COR's On Demand platform that is deployed in more than 200 markets throughout the world. C-COR offers the only On Demand platform that brings together streaming and switched digital video, storage, business and content management, DPI, next-generation advertising, and nPVR capabilities to ensure successful delivery of advanced services.

About C-COR

C-COR enables its global customer base to confidently grow, manage and deliver next-generation products and services to consumers. The Company's integrated access and management platforms, with a worldwide installed base valued at over $3.5 billion, deliver highly reliable and flexible voice, video and data, and support quick launch and cost effective scaling of new services. C-COR's common stock is listed on the NASDAQ Global Market (Symbol: CCBL) and is a component of the Russell 2000 Stock Index. For additional information regarding C-COR, visit www.c-cor.com.

Some of the information presented in this announcement constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent the Company's judgment regarding future events, and are based on currently available information. Although the Company believes it has a reasonable basis for these forward-looking statements, the Company cannot guarantee their accuracy and actual results may differ materially from those the Company anticipated due to a number of known and unknown uncertainties. Factors which could cause actual results to differ from expectations include, among others, capital spending patterns of the communications industry, changes in regard to significant customers, the demand for network integrity, the trend toward more fiber in the network, the Company's ability to develop new and enhanced products, the Company's ability to provide complete network solutions, continued industry consolidation, the development of competing technology, the global demand for the Company's products and services, the Company's ability to implement its restructuring and cost reduction measures, and the Company's ability to complete and integrate acquisitions and achieve its strategic objectives. For additional information concerning these and other important factors that may cause the Company's actual results to differ materially from expectations and underlying assumptions, please refer to the reports filed by the Company with the Securities and Exchange Commission.