Pace Micro Technology Showcases DSG Set-Top at SCTE Cable-Tec Expo; First in Industry to Show a Live Demonstration of a DSG Set-Top for Motorola Networks.

ORLANDO, Fla. -- Pace Micro Technology (LSE:PIC), the world's largest dedicated developer of digital set-top box technology, has today demonstrated live at the SCTE Cable-Tec Expo, the first Motorola-based DSG (DOCSIS Set-top Gateway) solution for the US set-top market. The Pace DSG set-top utilizes the integrated Data over Cable Service Interface Specification (DOCSIS) channel to carry out-of-band set-top signals.

Pace's DSG solution can be seen on its DC515 set-top, part of a new family of Pace products, first seen at the National Show in May. Pace engineers have developed the DC515 to exploit the full potential of out-of-band communications -- most importantly simultaneous use of high bandwidth broadband. Additionally, the DC515 benefits from Pace's successful completion of Motorola's MediaCipher Conditional Access Validation Testing.

On the DC515 SCTE visitors will see:

--Live DSG messaging - two-way out-of-band (OOB) data delivered via DSG data tunnels, replacing the legacy DVS-178 OOB messages. The Pace DC515 uses the CableLabs DSG specification.

--Simultaneous DOCSIS Internet access with connectivity for online multi-player gaming through a games console. There is no impact on the TV viewing; programs can be recorded on a VCR while games are being played

--Concurrent streaming to a PC - at SCTE the DC515 will stream video over IP in real-time to a standalone PC. This will demonstrate the full potential of DOCSIS two-way wireline speed using the DC515's DOCSIS cable modem connectivity (down to packet sizes of 200 bytes).

Chris Dinallo, Chief Technologist Pace Americas, comments: "DSG offers cable operators the new out-of-band communications that can be used for conditional access, messaging and new services, while leveraging the investment made in a High Speed Data (HSD) network. Furthermore, it promotes the transition toward an all-digital network by reducing dependency on the legacy infrastructure and allows for advanced DOCSIS two-way services."

He continues: "With the DC515, not only do we show how DSG two-way signalling is supported, but we also demonstrate the ability to perform legacy DVS-178 messaging, which is used to support conditional access, pay-per-view and VOD. Lastly the DC515 achieves full 'wireline' speed of the DOCSIS cable mode, all while watching TV."

The Pace DC515 is a DSG-enabled standard definition all-digital set-top that incorporates MediaCipher conditional access. It is also capable of legacy out-of-band operation. Using highly integrated silicon, the DC515 is a very cost-effective platform for MSOs moving their networks to the next level.

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 set-top box solutions for MSOs, operators, broadcasters, telecommunications companies and retail markets worldwide. Pace's head office is in Shipley West Yorkshire, with further offices in, Boca Raton, Florida, USA, France and Hong Kong. For further information, please visit Pace's web site at www.pacemicro.com.