DiviCom and JVC Supply DIRECTV Japan; DIRECTV Japan Looks to DiviCom for ATM Expertise and MediaView Encoders.

MILPITAS, Calif.--(BUSINESS WIRE)--Oct. 1, 1998--DiviCom Inc. (Nasdaq:CUBE) and Victor Company of Japan Limited (JVC) today announced that they have secured a contract to supply headend equipment and systems integration to DIRECTV Japan (DTVJ), the direct broadcast satellite service provider. DiviCom and JVC have a long-standing strategic partnership to jointly provide digital broadcasting systems.

The contract is part of DTVJ's plans to expand the number of channels it offers subscribers. DTVJ will implement MediaView(TM) MV40 encoders and take advantage of the DiviTrack(TM) statistical multiplexing feature to ensure high quality video at efficient transmission rates.

"DIRECTV Japan is extremely pleased to have reached an agreement with DiviCom and JVC to supply the compression equipment for our next phase of channel expansion," said Bill Johnston, director and vice president, Technology and Operations Division, DIRECTV Japan. "During the selection process, our priorities focused on the latest in MPEG-2 technology, DVB-compliance, pricing, delivery, and strong product support. In addition to meeting those requirements, DiviCom successfully conducted an on-site test simulating live broadcast conditions with DIRECTV Japan receiver/decoders."

In addition to hardware and software, DiviCom is providing system design and integration services. DTVJ is expected to begin broadcasting its expanded channel lineup in the fourth quarter 1998.

"We commend JVC in securing the DIRECTV Japan contract as DTVJ expands its broadcast facilities," said Tom Lookabaugh, president of DiviCom. "DIRECTV Japan is focusing on delivering an efficient, reliable service to its subscribers, and the combination of DiviCom technology and JVC expertise is helping them reach that goal."

The DiviCom-based compression system is located at DTVJ's backhaul facility in Tokyo. There, incoming analog video is digitally compressed using a technique known as variable bit rate (VBR) encoding, which improves efficiency by tracking content complexity and adjusting accordingly. The digital signals are combined and statistically multiplexed, then transported over a fiber-based ATM network to the DTVJ uplink site in Ibaraki prefecture, approximately 100 km northeast of Tokyo. To ensure quality service, DiviCom applied its proven capabilities in linking multiple transmission sites via ATM.

DIRECTV Japan is currently offering 90 channels of programming and plans to offer over 150 channels by the end of the year. In addition, DIRECTV recently announced the late October 1998 launch of a new interactive service called InteracTV. With InteracTV, viewers can call up on demand a variety of additional information transmitted simultaneously with the video using DIRECTV receivers.

DIRECTV

DIRECTV is the world's leading satellite digital broadcast platform and has over 4 million subscribers in the United States and over 380,000 in 12 countries in Latin America. In Japan, DIRECTV JAPAN MANAGEMENT, INC. launched its service in December 1997. Building on the success in the U.S. and Latin America and by offering carefully selected, high-quality programming tailored to the Japanese market, DIRECTV Japan is determined to deliver a service that totally satisfies all the needs and wants of Japanese viewers.

JVC

Victor Company of Japan, Ltd. (JVC) is the inventor of VHS, the current defacto standard for home video systems. JVC's professional systems meet specific needs ranging from broadcasters moving to DTV to video production. JVC's strategic alliance with DiviCom Inc. also extends to the development of high definition encoding/decoding systems for the transmission of digital HDTV. Building upon a wealth of camera, digital VTR, digital compression and projection technologies, JVC is moving decisively to offer appropriate solutions for the multimedia age.

DiviCom Inc.

DiviCom develops and integrates products that make digital video networking possible. Products include audio/video encoding, data broadcast solutions, network management systems, consulting and integration services. Based on the MPEG-2, DVB and ATSC international standards, DiviCom's products enable digital video broadcasting over a variety of networks including satellite, wireless, fiber, copper and cable.

DiviCom is a wholly-owned subsidiary of C-Cube Microsystems Inc. (Nasdaq:CUBE), and both companies are based in Milpitas, Calif. C-Cube is the leading provider of digital video silicon solutions for the communications and consumer markets. DiviCom can be reached at +1-408/944-6700 or on the World Wide Web at http://www.divi.com.

Note to Editors: DiviCom, DiviTrack and MediaView are trademarks or registered trademarks of DiviCom Inc. All other trademarks are the property of their respective owners.