PrediWave Introduces New Content Forwarding and Management System for Cable Operators.

Business Editors/High-Tech Writers

BroadBand Plus 2002

Booth # 5026

ANAHEIM, Calif.--(BUSINESS WIRE)--Dec. 4, 2002

-- New System Ideal for New Operators with No Existing Infrastructure

-- Centralizes Content Distribution Equipment and Set-Top Management in a Single Location, Driving Down Deployment and Operating Costs

PrediWave(TM), a global pioneer in providing cost-effective and bandwidth-efficient technologies for the delivery of video-on-demand (VOD) and interactive TV (iTV) services, today introduced a digital content forwarding system for cable multiple service operators (MSOs) at the BroadbandPlus trade show. The new digital content management system centralizes all the content distribution equipment, including server headends, content aggregation, MPEG encoders and set-top box management in one central location.

The centralized system further reinforces the PrediWave advantage, providing MSOs with the most scalable content delivery system at the industry's lowest total cost. With PrediWave's content system, MSOs can avoid spending the millions of dollars normally required to deploy servers and network equipment in a new cable network. The centralized system spares them from the additional facility and labor costs of traditional systems by consolidating their key equipment in one single location. Deployed at a fraction of the cost of traditional systems, PrediWave's centralized model also eliminates potential failure points in the cable network. As a result, MSOs gain the advantage of increased reliability and lower maintenance costs.

GREATER PERFORMANCE AND SCALABILITY AT A FRACTION OF THE COST

The content system has already proven its power in the Fujian Province in China, where the Southeast Television Network (SETVN) has installed a central headend in Fuzhou, the provincial capital city. From that central location, the content system powers cable TV, iTV and VOD services in the cities of Quanzhou and Xiamen using a fiber optic Synchronous Digital Hierarchy (SDH) ring to deliver the content. The system currently serves more than four million subscribers, demonstrating its power, performance and scalability.

"PrediWave set a new cost-performance standard with the PrediWave Digital Broadband Delivery System," said Tony Qu, CEO of Fremont, Calif.-based PrediWave. "Our system offers cable MSOs greater performance and scalability, yet can be deployed for less capital than any other offering in the industry. Our digital content forwarding system reinforces our cost advantage and centralizes all headend equipment so MSOs can deliver state-of-the-art digital services with less bandwidth, all at a fraction of the cost of conventional systems."

Conventional cable infrastructures require a master headend comprised of racks of servers and processing equipment, which then feeds content to dispersed headends with corresponding equipment to store and forward programming to subscribers located in different geographical locations. PrediWave's content forwarding system manages all programming, including iTV and VOD at a single headend and forwards the broadcast-ready content to each distribution node, which relays the content on to subscribers.

While conventional digital cable systems use the point-to-point protocol (PPP) to deliver content over a two-way network, PrediWave's content forwarding system uses Frame Relay over a one-way network. As a result, PrediWave's system delivers much higher content volumes while using a fraction of the digital bandwidth required by conventional digital networks.

ABOUT PREDIWAVE

PrediWave delivers a complete video on demand (VOD) and iTV solution for cable and is the only provider of a turnkey solution for satellite. The company delivers any content "on demand" to an unlimited number of customers simultaneously, initially featuring integrated video on demand (VOD), digital television (DTV) broadcasting, video on request (VOR) and personal video recording (PVR) capabilities. It uses the existing technology infrastructure of today's cable and DBS systems for a simple, cost-effective solution with minimal capital investment. This revolutionary delivery system can be expanded to include a range of services including interactive TV, streaming media, games and high-speed Internet access. PrediWave's groundbreaking approach offers head-end servers and bandwidth capacity scaled according to how many movies an operator plans to deliver, not how many points of delivery. In late 2001, PrediWave entered the Chinese marketplace and successfully deployed its initial trial system with Beijing Cable Company (BCTV). Earlier this fall, PrediWave and Fujian Cable Company established an agreement to provide PrediWave's cable VOD services to 4.6 million Fujian customers from now through 2003. Founded in 1998, the company is headquartered in Fremont, CA, with offices in Beijing, China and San Jose, CA. For more information, visit www.prediwave.com.