Myrio Signs First Contracts with Two Leading Independent Operating Carriers via Myrio Video Partner Program.

BOTHELL, Wash. -- Valley Telephone and Utilities Commission of New Smyrna Beach Select Myrio IP Video Platform to Deploy IP Television Services to Subscribers

Myrio Corporation, a leading provider of IP video software and services, today announced the first two customer wins for the Myrio Video Partner (MVP) Program. Valley Telephone and the Utilities Commission of New Smyrna Beach in Florida selected the Myrio IP Video Platform through MVP Partners Calix and SkyStream Networks.

Valley Telephone and the Utilities Commission of New Smyrna Beach are the first two customer wins for the MVP Alliance program. As members of the MVP Program, Calix and SkyStream integrated the Myrio IP Video Platform with their IP video solutions seamlessly, enabling the companies to provide video solutions to their customers. The partnerships streamline deployment of IP video services, such as pay-per-view, video on demand, digital television, and walled garden. Additionally, the MVP Program enables Calix and SkyStream to lower their customers' video deployment cost as well as reduce operational risk due to the flexibility of Myrio's platform to support multiple vendors.

Valley Telephone, a provider of state-of-the-art telecommunication services is deploying the Myrio IP Video Platform on the South Dakota Networks' (SDN) state-wide fiber optic network through Calix's C7 triple-play solution. The company was founded in 1989 by a group of South Dakota independent telephone companies to provide customers with a greater choice of voice and data services. By deploying the flexible Myrio IP Video Platform, Valley Telephone is the first provider to offer IP TV services on the SDN Network.

"The decision to deploy the Myrio IP Video Platform and Calix hardware was based on the companies' excellent reputation for delivering leading edge digital video solutions," said Steve Oleson, CEO of Valley Telephone. "Myrio and Calix have the experience required to deliver valuable video services that will scale with our service and subscriber base growth."

"By integrating Myrio's IP video platform, we are providing Independent Operating Carriers (IOCs) like Valley Telephone with greater choice in hardware, allowing them to streamline operations and system management and, ultimately, lower the total cost of operations," said Calix's Rick Johnston vice president of business development.

The Utilities Commission owns and operates a high-speed fiber optic network in New Smyrna Beach, FL. By deploying SkyStream's Mediaplex-20 product bundled with the Myrio IP Video Platform, the commission will offer triple play services initially to 2,000 customers. The end-to-end solution will be used at the headend of the fiber network to multiplex, encode and route video content to subscribers.

"Our goal is to give our subscribers world class digital television services," said Genny Turano, Interim General Manager/CEO, Utilities Commission of New Smyrna Beach. "Myrio and SkyStream provide us with a flexible and reliable solution that enables us to continue our advancement in offering advanced video services to our subscribers while differentiating us from our competitors."

"The flexibility of our Mediaplex-20 video headend platform combined with Myrio's IP Video Platform, provides a best-in-class video service for the Utilities Commission customers over its citywide fiber network," said Andy Lovit, vice president of worldwide field operations for SkyStream. "Together, the two companies provide an end-to-end IP video delivery platform that is capable of supporting today's most advanced IPTV deployments."

"The flexible Myrio IP Video Platform, bundled with our partners' solutions, provides technology buying choice and control for broadband service providers who want an integrated solution for their IP Video initiatives," said Roger Shanafelt, vice president of worldwide sales and marketing for Myrio. "The MVP program enables our partners to offer a proven and comprehensive IP video technology solution, extending their value proposition, sales and marketing reach."

About Utilities Commission of New Smyrna Beach

The Utilities Commission is a special district which was created under Chapters 67-1754 and 85-503, Laws of Florida. The Utilities Commission consists of five members who are appointed by the City Commission. The Commission currently serves approximately 23,000 electric, 20,000 water, 17,000 wastewater, 7,000 internet, and 17,000 telephone customers. The service area for the Electric system is the City of New Smyrna Beach and surrounding areas consisting of approximately 75 square miles.

The Commission is currently installing fiber to the home in new communities and will be providing high speed internet, cable and telephone service over the fiber network.

About Valley Telephone

Valley Telecommunications Cooperative Assn., is a member owned telephone cooperative that provides state-of-the-art telecommunication services to (9) communities in North Central South Dakota. Valley Telecommunications not only provides state-of-the-art telecommunication services, but also provides cable TV & Internet services via their wholly owned subsidiary Valley Communications.

Since 2003 Valley Communications has be able to serve 100% of their customers ADSL using Fiber in the Loop Technology. This capability prompted Valley to make the conversion from using several analog headends to use the South Dakota Networks all Digital headend. With the capability of delivery ADSL to all of their cable TV subscribers Valley made the decision to use and IP Video Platform for delivery of their new Digital Video. More information about Valley Telecommunications Coop., Assn., Inc. can be found at www.valleytel.net.

About Calix

Calix is a leading supplier of telecommunications solutions designed to simplify all aspects of voice, data, and video service delivery to business and residential subscribers for local exchange carriers of all sizes. Providing extensive optical and metallic density, unprecedented access system capacity and functional headroom, advanced management and provisioning capabilities, and broad service flexibility, the packet-based Calix C7 platform has been deployed in over 120 service provider networks throughout North America. More information about Calix can be found at www.calix.com.

About SkyStream Networks

SkyStream provides IP video delivery platforms that enables service providers to transform their business. With SkyStream products, they can better manage their existing services and generate new revenues from broadcast TV, movies on demand and multimedia. By taking IP closer to the edge, SkyStream's software and hardware products dramatically lower costs to provide services and optimize video delivery in any network. SkyStream is the leader in IP video with over 250 customers. SkyStream Networks' website can be found on the Internet at www.skystream.com.

About Myrio Corporation

Myrio is a leading provider of software, content and integration services that enable new video revenue opportunities for broadband operators by leveraging their infrastructures. Myrio's IP Video Platform consists of Myrio Interactive (TM), a full-featured end-user application enabled via a set-top box, and TotalManage(TM), a back-office subscriber and content management solution. Myrio's products and expertise enable operators to deploy more quickly and offer their subscribers a full range of IP-based digital television and on-demand entertainment while lowering the total cost of ownership through operational efficiencies and hardware choice. A pioneer in the industry, Myrio has commercially deployed its products to operators throughout the United States, and is conducting customer trials internationally as well.

Myrio is a privately held corporation funded by Ridgewood Capital, NeoCarta Ventures, Alexander Hutton Venture Partners and Siemens Venture Capital. For more information, please visit Myrio's web site at www.myrio.com.