Minerva Networks Wins Public Bid to Supply 220-Channel IP Television Headend.

Business Editors/Techology Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 27, 2001

Grant County Public Utility District Builds Largest Video Headend

for IP Based Television Distribution in the Country

Minerva(R) Networks today announced they have been awarded a contract by Grant County Public Utility District (GCPUD) in Ephrata, Washington to install an Internet protocol (IP) television headend for the delivery of high-quality video services--including over 200 channels of music, live television and video-on-demand (VOD)--over their fiber optic network. GCPUD has installed over 10,000 miles of fiber with an additional 40,000 miles planned within the next five years to provide residents in and around the county with telephony, high-speed Internet access, music and video.

"This is an exciting step in Grant County's fiber-to-the-home project," said Jon Moore, senior telecommunication engineer for Grant County. "Minerva has been very responsive to our needs by bringing outstanding video capability to our broadband network. We are pleased to have them as a contractor in this groundbreaking project."

Under the terms of the contract, 40 Minerva(R) Video Network Platform (VNP) MPEG-2 IP encoders and 60 Minerva(R) MediaGateway DVB-to-IP demultiplexers will be installed to create a fully redundant IP television headend for the acquisition of over 200 channels of live television and on-demand programming. The VNP encoders at GCPUD's network operations center receive and multicast local television content backhauled from VNPs located at the local broadcast affiliates. Concurrently, the MediaGateways take a full satellite transponder of channels for digital turn around and IP redistribution over the fiber network. This fiber network, called Zipp, will eventually reach 40,000 homes across roughly 5,000 square miles of rural Washington. Zipp also connects to NoaNet (Northwest Open Access Network), a longhaul fiber network that when complete will serve an estimated population of 2.1 million throughout Washington, Oregon, Montana and Idaho.

"This is a perfect example of the direction being taken by early movers like Grant PUD," said Reed Majors, vice president of marketing and business development at Minerva. "By utilizing an IP-based headend to deliver video, many Grant County residents can for the first time be offered a compelling choice of high-speed Internet access, VOD and live programming not previously available to them."

About Minerva Networks, Inc.

Minerva Networks, Inc. is a leading provider of carrier-class solutions that enable the delivery of broadcast-quality television and video services over broadband IP networks. Our IP Television management software, encoders and media gateways are integrated into IP Television headend solutions for the delivery of video services over broadband IP networks. Network operators worldwide use Minerva Networks' products and services to deliver next-generation entertainment, communication and e-commerce applications. Minerva Networks is headquartered in Santa Clara, CA and is available on the Internet at www.minervanetworks.com.

About Grant County Public Utility District

Grant County PUD was created by its customer / owners to meet community needs for electricity more than 50 years ago. They believed that public ownership and local control result in higher quality services and Zipp evolved through similar foresight. The PUD originally planned to build a fiber-optic network to communicate between its substations, hydroelectric facilities and offices. Further review indicated that expanding the network and offering a range of telecommunication services would benefit electric customers and the community. Access to the Gigabit Ethernet Zipp fiber optic network will allow the citizens of Grant County choice in cable TV, Internet and broadband services through independent service providers.

Grant County Public Utility District is headquartered in Ephrata, Wash. The consumer-owned utility owns and operates the 956 MW capacity Priest Rapids and the 1,038 MW Wanapum hydroelectric dams on the Columbia River. For additional information, please visit Grant County PUD's Web site at www.gcpud.org. Information about NoaNet can be found on the web at www.noanet.net.