NDS Showcases Next Generation TV Technologies and Applications at CES.

LAS VEGAS -- NDS Group plc (NASDAQ:NNDS) (EURONEXT:NNDS) (BSE:NNDS):

HIGHLIGHTS:

--NDS unveils a new entertainment server system that can stream HD content to three different rooms in the house to enable multi-room DVR services from a single server

--New XSPACE software from NDS brings Internet media directly to the living room through set-top boxes

--Proven content protection software guards premium content - movies, music, games - within the home and on the road.

--New DIRECTV Plus (R) DVR incorporates a number of the most advanced NDS XTV technology features

--Advanced application deployments with Bell ExpressVu, Cablevision, and Sesame Street illustrate how TV is evolving to offer more entertainment choices

NDS, the leading provider of technology solutions for digital pay-TV, announced a number of new technologies, deployments and partnerships at CES, further establishing the digital television set-top box as the future entertainment and media center for the home.

The company introduced a new entertainment server system, new software that enables consumers to access Internet media directly through their set-top box, and deployments that illustrate how movies, music, games and photos can all be easily and securely managed from a consumer's remote control. These demonstrations are on display at the NDS Showcase in the Bellini Ballroom at the Venetian Hotel this week at the Consumer Electronics Show. The NDS Showcase is by invitation only (see media contacts below).

"Our considerable experience in the pay-TV market has taught us that we need to create solutions that are easy for consumers to use, while constantly expanding convenience and choice, and which offer content providers and broadcast operators new sources of protected revenue streams. These announcements at CES bear out that market philosophy," said Dr. Abe Peled, President and CEO, NDS. "Our work with DIRECTV to help them deliver the most advanced consumer television experience, our partnerships with Samsung, Thomson, Broadcom and many others, along with our deployments with Bell ExpressVu, Cablevision, and Sesame Street illustrate that we have built some of the most advanced and effective TV technologies available today."

Details of the announcements include:

New Technologies

--Home AV Center II - NDS has teamed up with Samsung and Broadcom to demonstrate a prototype home entertainment server system that includes a full suite of NDS software solutions: XTV HomeNet; XTV Ready; and MediaHighway middleware. The server has five tuners, a 300 GB hard drive for storage, IP connectivity, two USB 2.0 ports, router capabilities and VoIP. With the new server, consumers will be able to enjoy High Definition programming in multiple rooms, they can transfer content - such as video, music, games and photos - between the DVR and portable devices, and they can control a range of peripheral devices such as printers and security cameras.

--XSPACE - NDS has teamed up with Akimbo, FOX Sports, and IGN Entertainment to demonstrate XSPACE, a comprehensive software solution for hybrid set-top boxes (STBs) with broadband connectivity, providing consumers with online access to audio and video content through their televisions. XSPACE enables operators to offer consumers access to premium broadcast and web content through hyperlinks from within regular TV programming, using an onscreen link. A truly novel and integrated experience for the consumer, XSPACE provides access to the vast catalog of content available on the Web through the STB. It also includes the ability to search through the content so consumers can find the specific content they want to watch or hear. Consumers will interact with the on-demand services through the integrated Electronic Program Guide (EPG).

New Deployments

--DIRECTV - DIRECTV Plus(R) DVR, the new interactive digital video recorder set-top box from DIRECTV, boasts many technology innovations from NDS. With 100 hours of programming storage available on the hard drive and more space available for pushed VOD services, DIRECTV Plus is designed to allow viewers to control their programming like never before, as well as offering an array of interactive services. NDS is powering the DVR engine of DIRECTV Plus with its XTV software, the platform that enables a broad set of new services, including the personalization of programming. XTV allows content to remain copy protected while stored on the disk, but it can still be easily viewed, searched and managed. Although NDS XTV is deployed on major systems around the world, this is the first deployment of XTV software in the US.

--Bell ExpressVu - NDS has launched a suite of interactive applications for Bell ExpressVu, the largest direct to home satellite TV provider in Canada. The interactive TV solution allows viewers to interactively customize their viewing experience, making them the "director" of programming. Using the application, which was designed and implemented by NDS and Bell ExpressVu, subscribers can select between different video and audio feeds, and can request information during the broadcast. The interactive solution has been created in a modular form, so it can be re-purposed for new programming in a very short time period. Broadcasters and content providers benefit from the easy-to-use production tools to quickly customize - "re-skin" - their content, rather than having to re-develop an application every time they want to apply interactivity to new programming.

--Sesame Street - NDS is announcing the successful launch of the Sesame Street Games service which is now available to Cablevision's iO digital cable customers throughout the New York metropolitan area. In collaboration with Cablevision and Sesame Workshop, NDS played the lead technology role in the design and development of this groundbreaking interactive games service. The games, created for children two to five years old, enable kids to interact with the beloved Sesame Street characters, while learning shapes, colors, numbers, letters and other basic skills.

Expanded Relationships

--Broadcom - NDS has ported its MediaHighway middleware to the Broadcom BCM97398 advanced decoder reference platform. The NDS MediaHighway middleware is an open and easy-to-use platform for the development of advanced television applications. The new global solution is based on both the MediaHighway OCAP middleware and the Broadcom BCM7038 and BCM7411 chipset families. The innovative reference platform will simplify the design process for both cable operators and consumer electronics manufacturers, reducing time to market for OCAP-based applications.

--Thomson - NDS has also ported its MediaHighway OCAP middleware to an all-digital set-top box from Thomson, the worldwide leader in access solutions for satellite, cable, terrestrial broadcast, and telecommunications networks. The set-top box from Thomson (the DCI62) reduces time to market and cost of deployment for cable operators. The integration of MediaHighway middleware on the Thomson DCI62 set-top box will provide an all-digital solution for cable operators who are ready for a digital switchover.

The OpenCable(TM) Application Platform (OCAP(TM)) is the middleware software specification adopted by the Cable industry to enable application writers to create new interactive services that will run on a broad range of advanced digital set tops and cable-ready TVs.

Protected Content

As technology creates new opportunities to distribute content broadly, NDS provides solutions to ensure that premium content and revenue streams are protected. NDS VideoGuard is the conditional access choice of the world's leading pay-TV operators. Deployed in over 58 million set-top boxes worldwide, VideoGuard offers TV platforms proven security and flexibility growth.

NDS is also a founding member of the SVP Alliance. SVP is a specification for protecting digital video content from unauthorized use by adding security enhancements to a standard video processor. SVP provides open, hardware-based content protection that ensures content, keys, and related control data remain under control from transmission to rendering.

About NDS

NDS Group plc (NASDAQ/ Euronext Brussels: NNDS), a majority owned subsidiary of News Corporation, is a leading supplier of open end-to-end digital pay-TV solutions for the secure delivery of entertainment and information to television set-top boxes and IP devices. See www.nds.com for more information about NDS.