DIVA and Nagravision Offer Integrated VOD Encryption Solution.

Business Editors & High Tech Writers

REDWOOD CITY, Calif. & CHESEAUX, Switzerland--(BUSINESS WIRE)-- Sept. 8, 2000

Leading VOD Solution Provider and Worldwide Leader in Conditional

Access and Encryption Technology Offer Digital Content Protection

DIVA(TM), a leading provider of interactive, video-on-demand (VOD) products and services, and Nagravision, the digital TV and broadband Internet division of the Kudelski Group, today announced a strategic relationship to develop and market a secure delivery platform for on-demand services. The companies intend to take a leading position and capitalize on the expansion of the VOD market worldwide.

Both companies are strong advocates for pre-encryption as the solution for VOD. Pre-encryption protects digital content at all phases of the delivery chain: production, post-house, distribution, video server, cable plant and set-top box.

The content is pre-encrypted during the MPEG digital encoding process from the studio's digital master. Once encrypted, the content can be delivered safely to VOD servers located in the operator head-end via terrestrial or satellite transport systems. The content is stored on the video server and delivered to set-top boxes in the encrypted format. The pre-encryption solution leverages Nagravision's existing Conditional Access System, ensuring a reduced launch lead-time for pay TV operators.

"Hollywood studios expect protection of digital content at all stages of the delivery process, which Nagravision's pre-encryption solution will provide," said Garry Stephen, Managing Director, DIVA Europe. "We are pleased to work closely with Nagravision, a world leader with proven solutions in content protection and encryption technology."

"This important strategic relationship with DIVA provides a solution often requested by our customers in the digital TV industry," said Charles Egli, Executive Vice President, Nagravision. "Our integrated solution ensures a cost-effective alternative to support VOD and other interactive applications."

As part of the agreement, Nagravision and DIVA will participate in joint marketing and promotional efforts. They will also promote pre-encryption standards in the OpenCAS industry forum. Furthermore, both companies expect to announce volume deployment agreements for this integrated solution with a major cable operator by the first half of 2001.

About Nagravision

Nagravision (www.nagra.com) is a leading provider of open conditional access and advanced management tools and integrated solutions for cable, satellite, terrestrial and MMDS operators worldwide. Designed for the digital pay TV and data broadcast industries, Nagravision's Conditional Access and Subscriber Management system provides an easy-to-use interface for controlling customer access rights and managing smart cards based security in set-top boxes or other devices. Nagravision's solutions provide digital television operators with the tools to operate and manage a range of interactive services that include e-commerce, interactive program guides and video-on-demand. Based on open standards, they can easily be upgraded with new functions and are scalable from one to several million subscribers

Nagravision's digital and analog conditional access technologies are currently being utilized by leading cable, satellite, terrestrial and MMDS operators worldwide representing over 22 million digital and analog pay TV decoders. Nagravision is a division of the Switzerland-based Kudelski Group (SWX "KUD") and has offices in the United States, Singapore, Shanghai, Brazil and Switzerland.

About DIVA

DIVA Systems Corporation (www.divatv.com) is a privately held company founded in June 1995 and is headquartered in Redwood City, California. DIVA commercially launched its digital video-on-demand (VOD) service in cable television systems in the fall of 1997. It is the only company currently deploying an end-to-end video-on-demand service in North America. As a leading provider of interactive VOD products and services for the cable television industry, DIVA provides the hardware, software, back office and integration expertise to enable cable companies to provide their customers with immediate, affordable access to hundreds of viewing choices including feature films, children's programming and specialty shows, via their remote control. DIVA has also recently introduced an interactive program guide (IPG) as a stand-alone product that allows television viewers to search and access viewing choices in real-time.

DIVA's interactive video-on-demand products and services are now deployed in six cable systems in the U.S. with multiple system operators including Charter Communications, Insight Communications and MediaOne (AT&T). DIVA has also established relationships with leading industry participants, including content providers such as Warner Bros., Sony Pictures, Universal, Disney, and Artisan; manufacturers of digital set-top boxes; providers of set-top box applications and operating systems; and billing system providers.

This document is provided for informational purposes only. DIVA and Nagravision make no warranties, express or implied, in this document.

This press release contains forward-looking statements relating to DIVA, including but not limited to, the ability of DIVA, through a strategic relationship with Nagravision, to take a leading position and capitalize on the expansion of the VOD market worldwide. Actual results may vary from anticipated results and such differences may be material, based on a number of factors, including the ability of DIVA and Nagravision to successfully market the pre-encryption of digital content, to promote pre-encryption standards and achieve volume deployment agreements for the technology.

Nagravision is a trademark of Kudelski SA. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.