NDS and Cablemas Join Forces to Bring Digital Cable to Mexico; The Two Companies are Working Together to Accelerate Adoption Of Digital Cable Services In Mexico.

Business/Technology Editors

NEW YORK--(BUSINESS WIRE)--Aug. 23, 2000

NDS Group plc (Nasdaq/Easdaq NNDS), a News Corporation (NYSE: NWS) company and a leader in providing business solutions to content owners and TV channels through sophisticated interactive TV technology, and Cablemas, Mexico's second largest cable service provider, announced today that the two companies are joining forces to bring digital cable to Mexico.

Cablemas, which currently serves over 300,000 customers in Mexico, will begin its digital cable service deployment in Tijuana, integrating and utilizing several key NDS conditional access and interactive television systems.

The new digital cable system from Cablemas will initially provide customers with 20 digital video channels and 40 digital audio channels for premium tier services. Internet access will also be offered as part of an advanced service offering.

"Digital cable services from NDS supply Cablemas with the security and management that we strive for when delivering the quality programming that our customers expect," says Enrique Alvarez, COO of Cablemas. "We are excited to work with NDS and hope that this collaboration in Tijuana will lead to the overall growth of digital cable services in Mexico."

NDS will supply Cablemas with key products including NDS Open VideoGuard(TM) conditional access and NDS StreamServer(TM), a network management system. NDS Open VideoGuard is a smart card-based content security system that guards vital programming and is the basis on which all advanced interactive services are built. NDS StreamServer(TM) is a network management system that allows the numerous parts of a digital cable system to operate as a single, integrated system.

Additionally, the rollout will feature the NDS Electronic Program Guide; NDS VideoGuard Administrator Monitoring System, an SNMP-based system which monitors all NDS subsystems; and NDS Verifier Set-top Box Software, which acts as an interface between the middleware and conditional access in the set-top box.

"Mexico has extraordinary market potential for digital cable, and the new system introduced by Cablemas will offer viewing experiences beyond anything customers could get from basic analog services," says Dr. Abe Peled, president and CEO of NDS Group plc. "NDS is very pleased to be part of the digital cable rollout by Cablemas. We look forward to a long relationship, providing digital cable solutions to them and their customers for years to come."

The implementation of this digital cable system by Cablemas, the first digital system deployed in Mexico by an open DVB-based system, could lead to an increased number of customers for this advanced cable service. Based on the success of this system in Tijuana, Cablemas may choose to offer the same digital system to all of its cable subscribers in Mexico.

About Cablemas

Cablemas is a private company and has been offering cable services in Mexico for more than 15 years. With more than 300,000 subscribers, Cablemas has become one of the leaders in the industry upgrading its networks and installing the most advanced technology in digital video and IP services. Cablemas has offices in more than 30 cities in Mexico and employs more than 800 people dedicated to the excellence in the delivery of digital video and IP services to its subscribers. More information can be found at http://www.cablemas.com.

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 http://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.