Pace Does The Two-Box Two-Step at the Broadband Conference and Expo in Texas.

Business Editors/High-Tech Writers

CableConnects 2003

SAN ANTONIO--(BUSINESS WIRE)--Feb. 19, 2003

During the next couple of days at the Regional Broadband Conference and Expo in San Antonio, Pace Micro Technology Americas is pleased to be demonstrating, for the first time in public, its new High Definition product, the Pace DC-550 HD. Providing industry leading security for copyright protection, and an unrivalled level of connectivity to accommodate a variety of standard definition TVs and HDTVs available today, the Pace DC-550 HD is breaking new ground in High Definition technology. At CableConnects 2003, Pace will demonstrate both the Pace DC-550 HD and the Pace DC-510 operating on a live feed from Time Warner Cable's San Antonio system.

The Pace DC-550 HD

With consumer demand for HDTV on the rise, cable operators are faced with supporting both standard definition (SDTV) and HDTV digital programming from content providers, as well as the wide variety of television sets in consumer homes today. Engineers at Pace Micro Technology have developed an innovative, cost-effective solution for operators to support the needs of their subscribers and of content providers.

Not only is the Pace DC-550 HD the world's smallest HD cable set-top box, smaller even than the industry leading Pace DC-510, it has achieved many industry firsts, including;

-- First HD box in-class to have DVI 1.0 with HDCP connectivity;

-- First High Definition cable set-top box to receive the EPA's ENERGY STAR(R) label for energy efficiency;

-- First digital cable set-top with both optical and electrical audio outputs with loop through connectivity for each, simplifying installation with other consumer electronics equipment (i.e. DVD Player);

-- First with component video loop through, simplifying installation with other consumer electronics equipment (i.e. DVD Player);

-- First with IR receive Tether connectivity, enabling users to place box out of sight while still being able to use their standard remote;

-- First HD box in-class to enable scaling of video in guide;

-- First digital cable box with innovative use of custom, self-colored ABS and Polycarbonate which minimizes the appearance of wear, reducing the cost of refurbishment.

The Pace DC-550 HD also features:

-- Best in-class MIPS and memory including Run from Ram

performance, enabling industry leading speed and processing;

-- Front panel control of aspect ratio for simple HD format

configuration, no reliance on the guide means seamless

operation regardless of initial output and simplifying

installation.

Industry Leading Security

The Pace DC-550 HD can support DVI 1.0 and IEEE1394 5C - standards based, secure digital connections for digital television monitors and peripheral devices like PVRs (personal video recorders). High Definition content providers are likely to restrict the availability of HD content until security measures like these are adopted. Cable operators have been particularly concerned about deploying unsecured boxes like others currently available. The Pace DC-550 HD hardware and software architecture has been specifically designed to enable the secure delivery of both SDTV and HDTV content.

Resolution and Aspect Ratio Flexibility for variations in content and display devices

The Pace DC-550 HD is designed with flexibility in mind. This groundbreaking cable gateway works for both SD and HD television sets (480p, 720p, and 1080i output resolutions), and supports HD video and graphics scaling for on-screen guides. Gateways available to operators so far have only accommodated an unsecured analog 1080i signal output, which can cause a subscriber's television to display some content with both letterbox and pillarbox bars (black bars around picture). The Pace DC-550 HD is capable of enhancing available content by scaling content to fit both 4:3 and 16:9 televisions; thus, minimizing letterbox and pillarbox bars that can create customer dissatisfaction.

With HDTV demand rapidly increasing, and the introduction of this innovative technology from Pace, operators will be able to cost effectively deploy yet another new service to their customers.

Also on display at CableConnects 2003:

The Pace DC-510

An innovative and cost-effective digital cable home gateway, Pace's DC-510 is creating quite a buzz among cable operators because of its low failure rate and great product reliability. Time Warner Cable has deployed the Pace DC-510 in 16 of its divisions, including San Antonio.

The world's smallest digital home gateway, the Pace DC-510 is the first to receive the EPA's ENERGY STAR(R) label for energy efficiency, and incorporates the world's first single-chip solution for U.S. cable networks. The Pace DC-510 supports on-demand applications such as VOD, electronic program guides, and more than 150 channels of analog and digital television.

About Pace Micro Technology

Pace Micro Technology plc (LSE:PIC) is a leader in digital television technology. The Company's primary focus is the development of innovative home gateway (set-top box) solutions for operators, broadcasters, telecommunications companies and retail markets worldwide. In addition, Pace develops edge of network devices for service providers, in particular digital IP gateways for low-cost integrated voice and data services.

Pace's head office is in Shipley West Yorkshire, with further offices in Bracknell, Cambridge, the USA, France and Hong Kong. For further information, please visit Pace's web site at http://www.pacemicro.com.