Lucent Digital Video Introduces New Line of MPEG-2 Encoders, Lucent VideoStar, for Growing Digital Television Industry.

MURRAY HILL, N.J.--(BUSINESS WIRE)--April 8, 1999--Lucent Digital Video, a wholly-owned subsidiary of Lucent Technologies (NYSE:LU), today unveiled a new product family, the Lucent VideoStar(TM) line, that offers the most comprehensive set of video networking, encoder and decoder products and features for the expanding global Digital Television (DTV) industry.

The product line offers a twenty-one slot chassis - the VS-21 - for large multichannel applications, and a five-slot chassis - the VS-5 - that is designed for applications requiring fewer channel capacities. The VideoStar family also includes small, single-function systems for applications that require only encoding or decoding capabilities in a compact, cost-effective package.

The Lucent VideoStar line offers a wide range of new optional features for customers, including the EVA-200 dual encoder; the QDEC-120 four-program Standard Definition (SDTV) decoder; the HDP-100 HDTV encoder; the VideoStar PSIPplus generator for the Program and Systems Information Protocol (PSIP); and the VideoStar StatMax(TM) internal statistical multiplexing software solution.

"The Lucent VideoStar product line embodies innovation at work. From digital video networking to over-the-air broadcasting, Lucent Digital Video is leading the worldwide digital video revolution," said Andreas Papanicolaou, president of Lucent Digital Video. "Our products offer the network interfaces and features that, combined with our world-class expertise in software design, enable us to provide the highest-quality video encoding and networking with the reliability that customers expect from Lucent."

The Harris Corporation, which has a strategic alliance with Lucent Digital Video, sells the VideoStar products to the over-the-air broadcast market as the Harris FlexiCoder(TM).

The Harris FlexiCoder maintains the leadership position in the United States Advanced Television Systems Committee (ATSC) market for encoders. More television stations in the United States use the Harris FlexiCoder than any other encoder. Lucent Digital Video also has the market leadership position in China for MPEG-2 encoders, having installed the world's first optical MPEG-2 networks in 1998. Lucent Digital Video has sold VideoStar HDTV encoders to the leaders in HDTV programming - noted cable programmer MSG Networks and Direct Broadcast Satellite (DBS) provider Unity Motion.

The VideoStar product family of the SDTV VideoStar Encoder SD single-channel MPEG-2 encoder; the VideoStar Encoder 2SD two-channel encoder, and the VideoStar Decoder 4SD four-channel decoder. The HDTV products include the VideoStar Encoder HD - a single-channel HDTV encoder, and the VideoStar Decoder HD, a single-channel HDTV decoder.

All VideoStar systems are based on a high-speed, mid-plane databus, which offers customers greater flexibility in multiplexing programs.

The VideoStar allows control of the video coding parameters to deliver high-quality video for all types of sources, from simple, static images to complex, fast-action sports programming. Source video can be compressed at the rate appropriate for the best possible image quality.

The Lucent VideoStar uses sophisticated proprietary compression algorithms for maximum picture quality and optimum bitrate efficiency.

The VideoStar line includes two stereo channels of CD-quality audio. Applications that require Secondary Audio Programming (SAP) can be processed with the AXP-100 audio processor module, which can encode an additional six CD-quality stereo channels.

Key modules of the Lucent VideoStar encoder include:

VideoStar HDP-100

The VideoStar HDP-100 HDTV encoder delivers HDTV in either the 720 progressive (720p) or 1080 interlaced (1080I) HDTV formats with audio on a single card.

VideoStar PSIPplus

The VideoStar PSIPplus software delivers the Electronic Program Guide (EPG) system for broadcasting to consumer television sets. PSIP is a key feature of the ATSC standard, and VideoStar PSIPplus is a client-server software application that assists the gathering, modification, insertion and transport of the EPG.

VideoStar Data Service Inputs

The VideoStar supports two standard RS-232 ancillary data interfaces per video channel to support up to two lines of Vertical Blanking Interface (VBI) data. These interfaces enable closed captioning, time code and ancillary data to be formatted by the VideoStar system into the MPEG-2 Transport Stream packets. Customers may insert specific encryption and access control signals with these inputs. These multiple data insertion inputs enable customers to implement program note datacasting, associated Internet links or other custom data applications.

VideoStar EVA-200

Two complete MPEG-2 video encoders and associated audio encoders are delivered on a single card. The EVA-200 achieves a new level of packaging density and video quality.

VideoStar StatMax(TM)

The VideoStar StatMax(TM) statistical multiplexer can combine multiple program channels into a single bitstream at different bitrates over satellite, fiber, or coaxial cable. StatMax does not require any additional hardware or cabling which implies system provisioning and operations. The VideoStar StatMax feature uses a "look ahead" function in each encoder to sample and monitor the incoming video signal. The VideoStar StatMax software reassigns available system bandwidth from those video sources with low complexity levels to those with higher complexity.

VideoStar QDEC-120

The VideoStar QDEC-120 is a new optional feature which is a four-program decoder with secondary analog or digital audio.

VideoStar Manager

The VideoStar Manager application delivers the monitoring functions for the entire VideoStar system. The VideoStar Manager is an SNMP manager application that is available to be preloaded on an external PC Users may select from a wide range of parameters when configuring each application module and are assisted by the VideoStar's graphical user interface (GUI). The VideoStar can be controlled through an RS-232 port, over an Ethernet connection, or remotely over the video transport network.

Further product or sales information can be obtained from Lucent Digital Video by calling 877-497-2448 in the U.S. or, outside the United States, by calling [phone]. E-mail may be sent to [e-mail]. Visit the Lucent Digital Video Web site at www.lucent.com/ldv.

Lucent Digital Video conducted the first formal interoperability tests between an ATSC encoder and various HDTV receivers in 1998. In November 1998, Lucent Digital Video conducted the first on-air HDTV closed-captioning demonstrations with WCVB-TV Boston and ULTECH.

Lucent won a Primetime Engineering Emmy Award in 1997 for its pioneering work in DTV as a member of the HDTV Grand Alliance. The company, which contributed to the original MPEG-2 specification, also built the world's first MPEG-2 and digital HDTV encoders.

Lucent Digital Video is one of several new entrepreneurial business ventures formed by Lucent to help bring Bell Labs technologies to market. Leveraging decades of Bell Labs research and development, the group was formed to manufacture and market digital video products, including encoders. Lucent Digital Video markets its product line for cable, wireless cable, fiber optic and satellite back-haul, DBS (Direct Broadcast Satellite) and other applications worldwide. In January 1998, Lucent Digital Video announced a strategic alliance with Harris Corp. to market DTV equipment for the North American broadcast market. In September 1998, LDV announced a strategic alliance with EMC Corp. for broadcast video server applications. For more information on Lucent Digital Video, visit the Web site at www.lucent.com/ldv.

Lucent Technologies, headquartered in Murray Hill, N.J., designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronic components. Bell Labs is the research and development arm for the company. For more information, visit our Web site at www.lucent.com.