CLI Delivers MPEG-2 Encoding Systems to Hughes DIRECTV and USSB; Largest installation of MPEG-2 encoders in the world today.

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 9, 1995--CLI (Compression Labs, Incorporated)(NASDAQ/NMS: CLIX) announced today that it has completed the conversion of all MPEG-2 digital encoding systems for Thomson Consumer Electronics for use in the Broadcast Centers of the Direct Broadcast Satellite (DBS) services of DIRECTV, a unit of Hughes Electronics Corporation, and Hubbard Broadcasting's United States Satellite Broadcasting (USSB) subsidiary.

CLI is the sole supplier of video, audio, and data digital encoding systems used in North America's first high-power DBS system. The deployment represents the largest installation of MPEG-2 encoding equipment in the world with more than 200 channels of digital video and audio. The converted Magnitude MPEG-2 encoding systems have been operating at the DIRECTV Castle Rock Broadcast Center in Colorado and the USSB Oak Dale Broadcast Center in Minnesota for more than two months.

Bill Butterworth, executive vice president of DIRECTV, said, "The new CLI MPEG-2 encoders provide excellent video and audio quality and very reliable operation, which enables DIRECTV to offer an even better viewing experience for our more than one million customers."

"Conversion of the USSB National Broadcast Center from MPEG-1 to MPEG-2 encoding, combined with the addition of statistical multiplexing, gives us the ability to offer more channels to DSS owners nationwide," said Robert W. Hubbard, executive vice president, USSB. "We are pleased with the results."

CLI was chosen by Thomson Consumer Electronics to supply the encoding products to DIRECTV and USSB. James E. Meyer, senior vice president, Product Management, Thomson Consumer Electronics, said, "CLI's digital expertise proved to be an invaluable aid in the development of the Nation's first digital direct broadcast satellite TV service for consumers throughout the continental U.S."

CLI's MPEG-2 implementation, which uses an array of encoder chips from C-Cube Microsystems, Milpitas, Calif., incorporates all the latest specifications and standards improvements as well as certain value-added enhancements, including statistical multiplexing. This key feature dynamically adjusts the data rate to achieve optimum utilization of bandwidth and optimum video quality.

Gary Trimm, president of CLI's Broadcast Products Group, said, "DIRECTV and USSB have revolutionized the delivery of video and audio services to TV viewers. The picture quality with MPEG-2 is superb. We are proud to be a part of this very successful service."

CLI's Magnitude family of products is used around the world for digital broadcast of entertainment and information programs over telephone, cable and satellite networks. The successful Magnitude products, which consist of a modular encoder and a choice of decoders, spearheaded the implementation of MPEG and are today used in the first real applications of MPEG-based digital broadcasting. The addition of MPEG-2 has further enhanced the quality of video broadcast to viewers' television sets making Magnitude a top choice for those operators requiring the interoperability resulting from compliance to an international standard.

Thomson Consumer Electronics, manufacturer and marketer of RCA, GE and ProScan consumer electronics brands, is the largest television manufacturer in the U.S. The company was selected by DIRECTV to develop the video compression technology and to manufacture and market the RCA Digital Satellite System, the initial decoder and 18-inch satellite dishes available at retail outlets. Thomson chose CLI to supply the encoding products to DIRECTV and USSB.

CLI designs and manufactures solutions for economical video communications. Using its core technology, compressed digital video, the Company provides a broad range of videoconferencing and broadcast products for business, government, educational and healthcare organizations. With headquarters in San Jose, Calif., CLI has regional sales offices across the United States, international offices in Australia, Canada, Europe, Japan and the People's Republic of China, and distributors serving more than 50 countries worldwide.

CONTACT: Compression Labs, Inc., San Jose

Joyce Strand, 408/922-4610

or

Thomson Consumer Electronics

James Harper, 317/587-4347

or

DIRECTV

Linda Brill, 310/535-5062

or

United States Satellite Broadcasting

Steve Blum, 612/642-4666