CLI Allowed Patent for MPEG-2 Digital Broadcast Statistical Multiplexing; Magnitude MPEG-2 Encoder with Statistical Multiplexing Enables Added Channels, Improved Video.

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 30, 1995--CLI (Compression Labs, Incorporated) (NASDAQ/NMS:CLIX) today announced that the Company has been allowed a patent for its statistical multiplexing technology, StatMux(TM), that is part of its MPEG-2 Magnitude(TM) encoder product.

Magnitude is the only MPEG-2 encoder available today operating in a major multichannel environment with this capability.

Statistical multiplexing, which will be marketed by CLI under the name StatMux(TM), enables broadcasters to enhance the video quality and add more services in the same bandwidth thus vastly improving network economics. Broadcasters can dynamically allocate bandwidth among the multiplexed video channels depending on the picture complexity.

For example, during fast-moving sporting events which demand the most bandwidth to achieve high picture quality, the Magnitude encoder can borrow encoding bits from a channel which is currently in a low motion sequence. The net result in a broadcast system is the ability to add 20 percent more content (channels) in the same bandwidth.

Gary Trimm, president of CLI's Broadcast Products Group, said, "CLI's Magnitude is the premiere encoder in the world making it ideal for digital television, as DIRECTV(R), USSB, and others have discovered. With statistical multiplexing, we supplement the MPEG-2 standard, and enable cable, satellite and telephone operators to add additional channels and improve video at minimal cost."

Magnitude is an MPEG-2 product family consisting of modular video and audio encoders and a choice of decoders for the delivery of entertainment and information services over telephone, cable and satellite networks. Magnitude complies with the worldwide standard, MPEG, an image-compression scheme for full motion video developed by the Moving Picture Expert Group under the direction of the International Standards Organization (ISO).

CLI is a leading designer and manufacturer of solutions for digital video communications including broadcast and videoconferencing products.

CONTACT: Compression Labs, Inc., San Jose

Joyce Strand 408/922-4610

Mia Bradway, 408/428-6735