DiviCom Wins Head-End Deployment for Colombian Satellite Television System.

MILIPITAS, Calif.--(BUSINESS WIRE)--Dec. 2, 1999--

CNTV Turns to Leading Digital Video Open

Solutions Provider for Superior Video Quality,

Bandwidth Efficiency and Flexibility

DiviCom(R), a C-Cube Microsystems (Nasdaq: CUBE) subsidiary and the world's leading provider of open solutions for digital television, today announced that it has been selected by the Comision Nacional de Television CNTV to deploy and integrate its head-end digital video solution at INRAVISION, Colombia's primary television network.

The open-solutions deployment is the first for state-run INRAVISION, enabling the network to transmit its nine satellite channels in digital format to local broadcasters throughout the country, and comes on the heels of two other DiviCom wins in the region -- WHTV in Puerto Rico and Television Distribution Systems (TDS) in Curacao.

"DiviCom's exceptional video and audio quality, superior integration and support, and flexible solution, made the open-solutions provider the obvious choice," said CNTV Technical Subdirector Geovanni Otalora. "We wanted to leverage DiviCom's unrivaled experience in deploying DVB-compliant open solutions to deliver the next generation of digital capability to our customers." -

For CNTV and other satellite television distribution systems, DiviCom's open solutions provide compatibility with a wide variety of head-end equipment. INRAVISION's open system, the first in the Andean region, will transmit programming throughout Colombia to remote local satellite stations for rebroadcast.

As part of the CNTV head-end deployment, DiviCom integrated its digital compression subsystem with other head-end equipment including integrated receiver modulators and an IRDETO conditional access system. Among its strengths, the DiviCom system can be expanded. Its statistical multiplexer, for example, can be fully deployed to accommodate more channels within the existing bandwidth.

"The head-end installation -- DiviCom's first in Colombia -- will enable CNTV to improve the broadcast satellite television service provided by its INRAVISION networks and regional television stations," DiviCom President Tom Lookabaugh said. "CNTV's decision to utilize an open architecture for its system underscores the network's commitment to maximize flexibility in the face of rapidly changing market requirements."

CNTV's distribution system will include the following DiviCom solutions:

--   The DiviCom MediaView(TM) MV40 Encoder: CNTV will deploy
     MediaView MV40 standard definition encoders, which offer superior
     video compression efficiency in a cost-effective package. The
     MV40 incorporates the award-winning DiviTrack(TM) statistical
     multiplexing feature to proactively apply the most accurate,
     efficient encoding strategy to any type of video scene or special
     effect. This capability enables the encoder to maintain picture
     quality at extremely low bit rates, giving television service
     providers more flexibility in allocating program bandwidth.

--   The THESYS(TM) Integrated Network Management Solution: This
     modular suite of user-friendly software packages provides
     integrated, advanced element and network management.

--   The MediaNode(TM) MN20 Multiplexers: This technology grooms
     MPEG-2 streams generated by encoders and digital receivers,
     performs scrambling and packages these signals into CNTV
     transport streams for delivery to remote stations for
     rebroadcast.

About DiviCom

DiviCom, Inc., a wholly-owned subsidiary of C-Cube Microsystems Inc. (Nasdaq: CUBE), provides open solutions for digital television including audio/video encoders, multiplexers and network management systems, as well as data broadcast solutions and integration and support services. Based on the MPEG-2, DVB and ATSC international standards, DiviCom products allow digital video to be broadcast over various networks including satellite, wireless, fiber and cable.

As announced on October 27, C-Cube Microsystems has entered into a definitive agreement to combine DiviCom with Harmonic (Nasdaq:HLIT), and to spin off or sell its semiconductor business in a taxable transaction prior to the closing of the transaction. The deal is expected to close in Q1 2000.

C-Cube is the leading provider of digital video silicon solutions for the communications, consumer electronics and computer markets. Both companies are based in Milpitas, Calif. C-Cube can be reached at 1.408.490.8000 or www.c-cube.com and DiviCom at 1.408.490.6700 or www.divi.com.

DiviCom and MediaView are trademarks of DiviCom, Inc. C-Cube and the C-Cube logo are trademarks of C-Cube Microsystems Inc.