Movidis Partners with Lantern Communications and PRISMIQ to Demonstrate Profitable VOD for Telcos.

Business Editors/High-Tech Writers

USTA Telecom 03

LAS VEGAS--(BUSINESS WIRE)--Oct. 13, 2003

Combined Power of Movidis' MMS 1000(TM) Lantern's MPS, and

PRISMIQ's Set-top Box Dramatically Lowers Cost for Deploying VOD;

Innovative Solution for Telcos to be Demonstrated at USTA Conference

Movidis, Inc., a pioneer in cost-effective VOD solutions, today announced that it is partnering with Lantern Communications and PRISMIQ to demonstrate the ease with which telcos can use their products to roll out revenue-generating, high-quality video on demand (VOD) services to end-users. The companies' combined VOD solution incorporates Movidis' innovative Molecular Media Server (MMS 1000(TM)) and Lantern's Metro Packet Switch (MPS) system, and is delivered on the PRISMIQ(TM) MediaPlayer, an entertainment gateway that delivers high-quality digital entertainment content to standard TVs and stereos throughout the home. The demonstration can be viewed in Lantern's booth 807 at the USTA/Telecom 2003 conference taking place in Las Vegas from October 11 through 15.

"Lantern shatters the barrier to entry for 10 Gigabit Metro infrastructure and enables carriers and multi-service operators to plan for growth and receive a Return on Investment (ROI) that can be measured in months rather than years," said Nader Vijeh, Lantern's President. "MPS is a proven product that can quickly increase revenue when it comes to applications like Video on Demand. Products like Movidis' MMS 1000 and PRISMIQ's MediaPlayer help us demonstrate the efficiencies of the technology, and we look forward to working with Movidis to make this the preferred end-to-end VOD solution."

"Set-top boxes are usually the largest cost in VOD service delivery, but IP set-top boxes are more affordable than their digital cable or satellite equivalents," said Brad Kayton, vice president of marketing and business development of PRISMIQ. "By demonstrating with Lantern and Movidis, we are showing that telcos can go beyond enjoying the benefits of IP delivery from the back-end network down into the home, with the powerful and affordable option to serve multiple TVs throughout the home by employing the home network."

In addition to the MMS 1000, Movidis' affordable and modular video servers, the company recently introduced a fully-integrated back-office solution for telcos to offer video services, which includes content, subscriber and bandwidth management as well as integration agents for legacy Operational Support Systems (OSS). The MMS 1000 combined with this back-office business management software lowers the cost per stream to $89, a fraction of the cost of competing solutions which allows service providers to quickly roll out new revenue generating services and reach a previously unattainable Return on Investment (ROI). Additionally, Movidis works with a variety of VOD equipment providers to further end-to-end deployment efforts.

About Lantern Communications

Headquartered in Sunnyvale, Calif., Lantern Communications sets a new standard for maximizing revenue-generating services through optimal utilization and maximized efficiency in fiber optic metro and regional infrastructure. Lantern's flagship product, Metro Packet Switch (MPS), is the industry's only Resilient Packet Ring (RPR) ADM with 10 Gigabit Ethernet, OC-192c and OC-48c trunk ports. Engineered with Flow Based Fairness Algorithm (FBFA), MPS enables scalable deployment of carrier-class, QoS-assured metro networks and services. Compared to other products, MPS improves efficiency by an order of magnitude, quadrupling the number of services carried per unit of fiber bandwidth. For more information on Lantern, please visit its Website at www.lanterncom.com or call [phone].

About PRISMIQ, Inc.

PRISMIQ, Inc. delivers the full spectrum of networked entertainment with affordable, high-quality devices and media software. PRISMIQ enables both broadband and home networking services for service providers. Garnering top industry honors from PC Magazine, CNET and TechTV, the PRISMIQ MediaPlayer networked entertainment gateway connects to a service provider's network, the Internet, and all the home computers enabling consumers to receive video-on-demand, view IPTV, play digital audio and video files and Internet radio, view digital photos, surf the Web, and chat online on the TVs, stereos, and entertainment centers throughout the home. For more information on PRISMIQ, please visit its Website at www.PRISMIQ.com or call [phone] x104.

About Movidis, Inc.

Movidis, Inc. provides secure and scalable real-time server solutions to service providers for applications such as Video-on-Demand, web serving, caching and audio-on-demand, among others. The company's core products, the Molecular Media Server and Business Management Software system, were developed for Telcos, Multiple System Operators (MSOs), and broadband service providers enabling them to roll out new revenue generating services with an ROI measured in months rather than years. Movidis was founded in 2001 and is privately funded. For more information on Movidis, please visit its Website at www.movidis.com or call [phone] x202.