China Chooses NDS Technology For National Cable TV Network; Broadband and Interactive Services to 19 Provinces and Cities Across China.

Business & Technology Editors

HONG KONG--(BUSINESS WIRE)--May 19, 2000

NDS Group plc (NASDAQ/EASDAQ:NNDS), a News Corporation company (NYSE:NWS), and one of the leading providers of conditional access systems and interactive applications for digital television, today announced it has been selected by China's Information Network Center to supply the NDS digital cable TV headend systems, conditional access, set-top box operating system and electronic program guide for the country's exclusive national cable television network.

The Information Network Center (INC), a state-owned organization operating under the authority of the State Administration of Radio, Film and Television (SARFT), will operate a SDH fiber network initially linking 19 provinces and major cities across China and expects to expand to full national coverage. The INC platform will deliver enhanced TV and broadband services directly to cable subscriber homes nationwide. The network is scheduled to be operational by third quarter of 2000. The INC is the sole organization given authority by the central government to unify technology used by cable TV systems and to facilitate delivery of programming between cable systems within the national network.

According to SARFT, China has 1.6 million miles of cable within the government-controlled cable TV network. In April this year, SARFT officials disclosed that as of February 2000, there were 80 million cable subscribers and 264 million TV homes in mainland China. By 2001, when restructuring is complete, SARFT forecasts that cable subscribers will reach 120 million.

Dr. Abe Peled, President and CEO of NDS says, "SARFT has set clear goals to restructure the national cable network, and Information Network Center will play a historical role in developing China's cable TV broadcasting. With our worldwide experience in running large broadcasting systems, NDS is uniquely suited to assist INC with its rapid and assertive network expansion plans.

"We look forward to continuing to work with our Chinese partners, both in research and development and rolling out new services. We feel confident that together with our partners we will deal with the challenges of this unique opportunity to implement the first national cable TV network in China," says Dr. Peled.

The INC network covers five provinces and cities in northern China, and 14 provinces and major metropolitan areas in southeastern and coastal China.

The INC broadcast headend operations in Beijing will be using a suite of NDS solutions. The NDS Chinese conditional access system for INC is expected to be co-developed with a Chinese partner, and it will be used for broadcast security throughout the national network. In addition, the set-top box necessary to receive digital broadcast and broadband services in the home will utilize the NDS set-top box operating system. The viewer will select programming using the Chinese language electronic program guide (EPG) co-developed by NDS and China Central TV, CCTV, the national state-run broadcaster. The cable broadcaster can manage customer service and billing through the NDS Provider(TM) subscriber management system. INC plans to offer interactive services in the future, which may include NDS applications such as interactive programming, interactive advertising or enhanced viewing applications.

About NDS

NDS Group plc (Nasdaq/Easdaq "NNDS") is a leading supplier of open conditional access software and interactive systems for the secure delivery of entertainment and information to digital TVs, set-top boxes, personal computers and mobile devices. The Company also develops e-security solutions for broadband Internet multicasting applications. NDS systems enable broadcasters, content providers and enterprises on the leading edge of the convergence of TV and the Internet to profit from digital TV and interactive services, including integrating and delivering Internet and TV content, data broadcasting and e-commerce transactions. A portfolio of services including consulting, systems design and integration, support and maintenance complements NDS' systems - and technologies.

NDS customers provide services to over 50 percent of the world's digital satellite subscriber base, and more than 16.8 million viewers of pay television currently use NDS technologies. NDS, headquartered in the United Kingdom, has offices worldwide, employs over 1,000 people, and continues to make a major commitment to R&D with over 400 employees at research centers in Israel and the United Kingdom. NDS' largest shareholder is News Corporation (NYSE "NWS", "NWS.A"), a global media and entertainment company.

The statements contained in this release which are not historical facts may constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to the plans, projections or future performance of NDS, which involve certain risks and uncertainties, including risk of market acceptance, the effect of economic conditions, possible regulatory changes, technological developments, the impact of competitive pricing and the ability of NDS and its commercial partners to develop systems and solutions which meet the needs of the broadcasting industry in a timely and cost-efficient manner, as well as certain other risks and uncertainties which are detailed in NDS' filings with the SEC.

Company or product names have been used for identification purposes only and may be the trademarks or registered trademarks of their respective companies.