MATAV will use NDS technology to transmit interactive television services.

Business & High Tech Editors

JERUSALEM--(BUSINESS WIRE)--October 17, 2000

NDS' technology will enable MATAV Digital's subscribers to enjoy traffic reports, weather updates, ticket reservations, electronic mail

and interactive games.

The Israeli cable company MATAV Digital has chosen NDS Group plc (NASDAQ/EASDAQ: NNDS), a News Corporation (NYSE: NWS) company and the leading provider of conditional access systems and interactive solutions for digital television, to supply it with technology and infrastructure for advanced interactive services.

These services are expected to start running in the near future. NDS has previously provided MATAV Digital with its conditional access and system integration services for its base digital platform.

In the first stage, digital platform subscribers will be able to view on the screen traffic reports, weather updates, email and to use the various levels of interactive games at the touch of a button.

It is anticipated that at a later stage, subscribers will enjoy a variety of viewing angles and T-commerce applications, in addition to being able to order plane and cinema tickets, check their bank accounts and carry out various bank transactions.

Raffi Kesten, General Manager of NDS Technologies Israel, says that introduction of interactive services makes MATAV Digital a world leader among broadcasting companies. "MATAV Digital has taken a huge step towards tomorrow's television and is now poised at the forefront of broadcasting technologies worldwide. Viewers will soon be able to enjoy services that until recently no one believed a television could provide."

MATAV Digital currently has 295,000 customers in the central and northern areas of Israel. The penetration level stands at over 71%. Amit Levine, General Manager of MATAV Digital, said yesterday: "The interactive system is an additional platform for providing entertainment and information services to the subscribers. NDS was chosen to supply our technology infrastructure because MATAV Digital has confidence in NDS' ability to do the job successfully."

About NDS

NDS Group plc (NASDAQ/EASDAQ: "NNDS") is a leading supplier of open conditional access software and interactive systems for the secure delivery of entertainment and information to TVs, set-top boxes, personal computers and mobile devices. The company also develops security solutions for broadband Internet multicasting applications. NDS systems enable broadcasters, content providers and enterprises on the leading edge of the convergence of TV and the Internet to profit from digital TV and interactive services, including integrating and delivering Internet and TV content, data broadcasting and e-commerce transactions. A portfolio of services including consulting, systems design and integration, support and maintenance complements NDS' systems and technologies.

NDS customers provide services to over 50 percent of the world's digital satellite subscriber base, and more than 18.5 million viewers of pay television currently use NDS technologies. NDS, headquartered in the United Kingdom, has offices worldwide, employs over 1,000 people, and continues to make a major commitment to R&D with over 450 employees at research centers in Israel, the United Kingdom and China. More information can be found at www.nds.com. NDS' largest shareholder is News Corporation (NYSE: "NWS", "NSW.A"), a global media and entertainment company.

The statements contained in this release which are not historical facts may constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to the plans, projections or future performance of NDS, which involve certain risks and uncertainties, including risk of market acceptance, the effect of economic conditions, possible regulatory changes, technological developments, the impact of competitive pricing and the ability of NDS and its commercial partners to develop systems and solutions which meet the needs of the broadcasting industry in a timely and cost-efficient manner, as well as certain other risks and uncertainties which are detailed in NDS' filings with the SEC.