Iowa Network Services and VideoTele.com First to Deliver Digital TV Over Statewide Network.

Business Editors/High-Tech Writers

LAKE OSWEGO, Ore.--(BUSINESS WIRE)--Jan. 28, 2002

Versatility of VideoTele.com's DHE Solution Provides Services

to Both ATM and IP Access Platforms

VideoTele.com, Inc. (VT.c), a Tektronix company (NYSE:TEK) and the single resource for service providers deploying innovative home entertainment solutions via the broadband Internet, announced the completion of a revolutionary Digital Headend (DHE) installation for Iowa Network Services (INS). INS purchased VideoTele.com's Astria(TM) content processor with patent-pending QualView(TM) applications (QualView(TM) video demultiplexer and QualView(TM) audio demultiplexer) and Aveon(TM) element management software for delivery of pristine video and audio entertainment over its statewide fiber backbone. Clear Lake Telephone Company, INS' first partner to turn up services, also represents the first independent operator in Iowa to offer premium digital video programming over customers' telephone lines.

INS' business objective was to create a network that would serve as the foundation for the entire state, over which it would provide voice, video and data services. The business model is based upon the network's IOC members. Members help support installation costs and own the transmission portion of the project. In exchange, they receive an established home entertainment lineup augmented by high-speed Internet access and integrated telephony services.

"When making the decision to invest in a broadband video vendor, INS compared VideoTele.com with others in the field, but found none to rival VT.c's video expertise and customer accolades," reports Howard Juul, INS vice president. "VideoTele.com's ability to provide high quality audio and video programming over various heterogeneous access technology platforms, including those that support VDSL, ADSL and CATV, was a definite advantage."

INS currently provides centralized access to 147 rural Iowa independent telephone companies that serve 330 communities and 280,000 end users. The new DHE installation allows INS to deliver digital video and audio over its OC-48 SONET network. Access to INS' Digital Headend gives IOCs the immediate opportunity to deliver high quality video and audio services to their respective customers. The INS digital package features 175 channels of premium-quality digital video and audio. Subscribing IOCs will provision their customers via service from their existing local telephone company.

"As the telecommunications landscape continues to evolve, it's extremely important for vendors to support next-generation service networks such as INS," said Steven Hawley of Advanced Media Strategies. "These service providers require a flexible, yet standardized, carrier-class video processing platform that integrates with a mix of access networks, customer content requirements and third party technology. VideoTele.com provides a highly interoperable platform, and services expertise to meet the needs of operators with innovative service models like INS and its customers."

"We strategically designed our digital platform in Clear Lake with the intent of offering voice, data and video services simultaneously over the phone line as the technology became available and accessible," said Tom Lovell, general manager of the Clear Lake Independent Telephone Company (Cltel). "With INS as our partner, we have access to a state-of-the-art network that delivers superior video signals from the VideoTele.com headend. Now we can provide our customers with a multitude of channels at an economy of scale that is appropriate for an independent operator."

VideoTele.com's Astria(TM) platform receives, prepares, and delivers all video and audio content for the INS network. The Astria(TM) content processor delivers a new level of operating reliability for Digital Headends -- all from a two-foot cube of hardware. The flexibility of its hot swappable chassis boards designed using Quad Stream Processors provide broadband operators assurance of maximum "in service" or "up" time. These features, along with the ease of management of the entire headend by the Aveon(TM) software using QualView(TM) applications, make the Astria(TM) platform a very robust and complete Digital Headend solution.

"VideoTele.com looks forward to helping INS expand its unique network offering that will serve as a ground-breaking model for other states," comments Douglas C. Shafer, chief executive officer and president of VideoTele.com. "VideoTele.com's ability to provide system integrations services, as well as a network- and protocol-neutral product, made our solution ideal for INS. We take pride in making our customers' transition to digital video both painless and profitable."

About the Companies

Iowa Network Services, Inc.

Iowa Network Services, Inc. (INS) is a leading-edge telecommunications firm headquartered in Des Moines, Iowa. INS owns and operates a fully digital 4500 mile fiber optic network throughout the state of Iowa with a centralized switching control center located in Des Moines. Our network infrastructure includes over 4500 miles of network facilities and delivers leading-edge technology and services to both rural and metropolitan customers. For additional information, access www.iowanetworkservices.com.

VideoTele.com

VideoTele.com is the single resource for Digital Headend solutions enabling home entertainment delivery via the broadband Internet. Building on 20 years of experience in video over telecommunications networks, VideoTele.com assists broadband providers with innovative products, strategic consulting and premier performance in system design, deployment and support. VT.c Digital Headend solutions are used today at RBOCs, IOCs, and PPTs. VT.c is the number one provider of these products to Independent Operating Companies (IOCs). Headquartered in Lake Oswego, Ore., VideoTele.com is a subsidiary of Tektronix, Inc. For additional information, access www.videotele.com.

Note to Editors: VideoTele.com, Astria, Aveon, and QualView are trademarks of VideoTele.com, Inc. Tektronix is a registered trademark of Tektronix, Inc. All other trade names referenced are the service marks, trademarks, or registered trademarks of their respective companies.