DiviCom Wins Head-End Deployment for New Direct-to-Home Digital Satellite Service in Latin America.

Business Editors and High Tech Writers

MILPITAS, Calif.--(BUSINESS WIRE)--Feb. 22, 2000

SATEL TV Selects Leading Digital Video Open Solutions Provider

for Integration Expertise, Technical Flexibility and Superior Video

Quality

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 to deploy its digital head-end solution for SATEL TV, a new Panama-based uplink facility that will provide direct-to-home (DTH) satellite television service throughout Latin America via PanAmSat.

DiviCom will integrate its encoders, multiplexers and other digital head-end equipment with a DVB-compliant conditional access subsystem and digital set-top-boxes. SATEL TV's DTH system will transmit Chinese- and Spanish-language satellite television programming to as many as 20,000 homes the first year and eventually reach 100,000 subscribers throughout Latin America, home to about 1 million Chinese-speaking people.

"DiviCom distinguished itself from other head-end suppliers with its superb video and audio quality and its exceptional ability to integrate with other systems," said Hector Chong, SATEL TV's General Manager. "But our decision to choose DiviCom hinged on its flexible solution, which enables us to expand our programming and choose the most advanced head-end equipment and set-top boxes."

In the coming months, Chong said SATEL plans to take advantage of the DiviCom head-end's expandability by more than doubling the DTH provider's channel count.

"SATEL TV clearly recognizes the importance of open solutions in enabling television program providers to adapt to today's dynamic market requirements while planning for future expansion," said Tom Lookabaugh, President of DiviCom. "We've long provided open solutions to cable and satellite service providers in Latin America, Asia, Europe and satellite television operators in the United States. Around the world, open solutions are quickly becoming a critical element of successful digital video deployments."

The SATEL TV deployment follows three recent DiviCom wins in the region -- Colombia's primary television network INRAVISION, WHTV in Puerto Rico and Television Distribution Systems (TDS) in Curacao.

The deployment will include the following DiviCom open solutions:

- The DiviCom MediaView(TM) MV12 Encoder: The MediaView MV12 standard
definition encoders offer superior video compression efficiency in a
cost-effective package.

- 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 Multiplexer: The core of digital satellite and cable
head-end systems, the MN20 not only combines and grooms broadcast audio, video,
and associated data programming but supports DVB and DES scrambling.

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 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.