Diversified Systems Selects InnovaCom's TransPEG System to Integrate ATM Video Network Solutions.

SANTA CLARA, Calif.--(BUSINESS WIRE)--June 21, 1999--

In a move to further solidify its video networking market position, InnovaCom Inc. (OTC BB:MPEG), a Silicon Valley manufacturer of MPEG-2 video compression systems, Monday announced it has formed a strategic business alliance with Diversified Systems Inc.

Diversified Systems, a New Jersey-based systems integrator, has chosen InnovaCom's TransPEG(TM) line to incorporate into client's high-speed networks, which require broadcast quality video distribution.

"At Diversified Systems, we deliver solutions rather than products," stated Kevin Collins, director of Operations at Diversified Systems. "InnovaCom holds the same philosophy and we are confident that integrating InnovaCom's high quality, cutting-edge products into our solution sets will be welcomed by both our current and future customers."

InnovaCom's TransPEG family of products is designed to facilitate MPEG-1 and MPEG-2 video transmission over Native ATM/LANE, Fast Ethernet and T1/E1 based networks. Straightforward integration of TransPEG's hardware and JAVA(TM)-based user interface allows users to enhance their return on network investment through shortened implementation times, acceleration of learning curve and reduction of maintenance costs. And because TransPEG has a direct connection to the switch, precious bandwidth is preserved for video transmission.

"Diversified Systems has an impressive reputation within the industry, and they share our commitment to quality in all areas of business. Diversified's team is known for excellence in system design, integration and after-installation service to major broadcast, cable and private companies worldwide," remarked Debby McDonald, vice president of Sales at InnovaCom. "We are pleased that our products were selected by Diversified -- to deliver a total networked video solution."

Diversified Systems is a turnkey systems integrator and during the last 15 years, has developed multi-disciplined, engineering and integration teams in the areas of broadcasting, cable TV, video compression and networking. Diversified Systems brings an impressive array of advanced solutions to its clients. In its history, Diversified Systems has built hundreds of advanced systems for clients, both domestically and internationally. For more information on Diversified Systems, call 908/245-4833 or visit the company's Web site at www.divsysinc.com.

InnovaCom is a Silicon Valley manufacturer of video compression based transmission and DVD PreMastering Systems. The company's MPEG-2 based product line targets the digital television, communications and DVD production marketplaces. InnovaCom is located at 3400 Garrett Drive, Santa Clara, Calif., 95054. For more information, call 408/727-2447 or fax [phone] or visit the company's Web site at www.transpeg.com.

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This news release contains forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statement. Factors that might cause such a difference include, but are not limited to, the factors set forth under "Risk Factors" in the company's registration statement on Form SB-2.

Readers should not place undue reliance on forward-looking statements, which only reflect the view of management as of the date hereof. The company does not undertake the obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. Readers should carefully review the risk factors described in other documents the company files from time to time with the Securities and Exchange Commission.