P-Cube Releases Content Protection Service Application for Mobile Data Services.

Business Editors/High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--June 14, 2004

New Approach Employs Terminal Identification Rather

Than Data Encryption to Protect Copyrighted Content

from Unauthorized Use, Storage and Distribution

P-Cube Inc., the first to provide programmable IP service control platforms for wireline and mobile network operators, today announced its enhanced mobile service application, Encharge version 2.1. Further demonstrating the extensibility of its Service Control Platform, Encharge 2.1 leverages P-Cube's application- and subscriber-aware architecture to provide mobile operators with the ability to protect copyrighted content from unauthorized use, storage and distribution. Unlike digital rights management (DRM) technologies that encrypt data, P-Cube's content protection uses terminal identification, which allows mobile operators to identify an authorized device-type and permit or block content based on the device's profile. The technology is a critical component to service providers' strategy of managing illicit distribution of data which most often occurs when advanced users utilize the Internet to access mobile content servers via workstations, laptops and PDAs.

Personalizing a subscriber's cell phone environment with individualized content such as ring tones, animated screensavers, music, gaming or even video clips is a high-margin growth business for mobile operators and content providers. According to research conducted by leading analyst group In-Stat/MDR, wireless data users in the United States will top 111 million in 2009, representing a $26.0 billion market, or 19% of all mobile wireless revenues. The growing amount of premium content available from mobile operators needs to be protected from unauthorized access and illegal distribution.

"Today's list of mobile data types -- ranging from ring tone downloads and music services to gaming -- are all driving mobile data usage. Add general-purpose systems like PDAs, mobile connected laptops or workstations with unlimited storage into the mix and suddenly users can easily access, download, copy and distribute vast amounts of premium content without limitation," said Clint Wheelock, director of Instat/MDR's Wireless Research Group. "Subscriber-aware, IP-based network technology like P-Cube's addresses this problem by helping confine usage to a subset of well-known terminal-types, making content protection manageable."

P-Cube's Service Control technology is comprised of a programmable network element that sits inline with data traffic and creates an intelligent overlay enabling the network to identify, classify, guarantee performance and charge for content-based services. Using Encharge v2.1, mobile operators can control access to their designated content servers based on a subscription plan and device type, which enables the operators to determine if an unauthorized device is attempting to download valuable content.

"Mobile content data is a very lucrative asset for wireless providers. It's imperative that providers protect their assets while simultaneously packaging, delivering and charging for services that permit subscribers to personalize content," said Yuval Shahar, president and chief executive officer of P-Cube. "Our technology-agnostic services layer allows mobile operators to identify individual subscribers and control access to services based on their subscriber profile and device type further demonstrating the importance of service control in IP networks."

In addition to content protection, the Encharge service application provides mobile carriers with the ability to increase revenues by adding prepaid and postpaid content-based services to their mobile offerings. By integrating with existing operational and business support systems and converging the voice and data prepaid-postpaid environment, operators eliminate redundant systems and receive immediate cost savings. Encharge's real-time analysis and policy-based charging ensures carriers can block, redirect or shape content-based services while comprehensive Layer 7 deep packet inspection enables the identification of all mobile services including Push-to-Talk and multimedia offers.

Encharge 2.1 is generally available and shipping to customers today.

About P-Cube Inc.

P-Cube is speeding the evolution of networks from generic transport mechanisms to platforms for offering higher-value, higher-margin services. Programmable, scalable and purpose-built for the communications sector, P-Cube's technology helps ensure profitability for DSL, cable and mobile IP service providers as they provision for the delivery of today's and tomorrow's content-based services. The company's Service Control Platform adds intelligence, stateful deep packet inspection and wire-speed flow-based analysis to existing network infrastructure and enables carriers to identify and charge for dissimilar content applications while simultaneously managing different applications' performance requirements. P-Cube is involved with today's largest service control deployments. Its customer base is comprised of over 40 companies worldwide including: SingTel, Telenor, @NetHome, KT, 3 Italy (Hutchison), Plala Networks (NTT) and Interoute.

Founded in 1999, P-Cube is headquartered in Sunnyvale, Calif., research and design facilities are located in Israel, and regional sales offices are located in the United States, Europe, and Asia. For more information, please visit http://www.p-cube.com or e-mail [e-mail].