PrediWave Unveils ``MyTV,'' The Ultimate Personalized Interactive TV Channel.

Business/Entertainment Editors

FREMONT, Calif.--(BUSINESS WIRE)--July 24, 2002

New Content Delivery System Enables Multiple Subscribers

In One Household To Create Individual Repositories

Of Their Favorite TV Programming

With PrediWave's new MyTV feature, every member of the family will be able to create a personalized interactive TV channel with all the content that satisfies his or her desire. As programmers, interactive content creators, cable operators and satellite distributors identify what products they will offer the marketplace, PrediWave, a global pioneer in providing cost-effective and bandwidth-efficient technologies for the delivery of video-on-demand (VOD), iTV services and PVR capabilities such as timeshifting, pause and fast forward, will be ready to help consumers cherry-pick the content that meets their individual interests.

Are your subscribers ready to build their own TV channels? Let's say that the teenager in the house wants to mix his MTV with a few video games, weekly broadcasts of Dark Angel and the hottest new Adam Sandler movie on VOD. Then there's dad who would like to select segments from The History Channel, Shark Week on Discovery, some fix-it tips from This Old House and tape the next Oscar de la Hoya pay-per-view match. Meanwhile, mom wants to pay the bills on her TV set, timeshift Candace Bergen's talk show on Oxygen, download some hot recipes from The Food Channel and catch the weekend's weather on The Weather Channel in preparation for the trip she's planning for the family.

"While much of the envisioned interactive content that companies have talked about over the past few years is still in development stage, we have crossed the barriers and created a way for consumers to define their own television profiles," said Tony Qu, president of PrediWave. "If deployed today in any U.S. system, individual subscribers can store a mix of video-on-demand, digital broadcast programming and special events on PrediWave's MyTV feature. In the future, there will be a limitless mix of interactive content that can be culled to create one's individual channel."

The revolutionary PrediWave Digital Broadcast Delivery System can cost-effectively deliver any VOD, DTV or iTV programming to an unlimited number of subscribers on any cable or satellite DBS system, using minimal bandwidth. Employing a packet-based broadcast mode to disseminate content, it provides a personalized viewing experience to each user. True video-on-demand, where subscribers can select a movie at any time of the day or night, is a reality with PrediWave, along with complete PVR functionality -- timeshifting, pause, single step, rewind, slow motion and fast forward. PrediWave can service an infinite number of users because it requires only one stream of bandwidth per title, instead of one stream per customer.

PrediWave's MyTV will ultimately provide the definitive TV playground and resource for each viewer. The future may include a mix of personal favorites covering the entire spectrum of TV programming and interactive content (shopping, games, sports, stock market transactions, Yellow Pages), text options (books, newspapers, encyclopedia, bill paying, recipes, classified advertising, etc.), distance learning courses and other special services offered by cable or DBS distributors.

"PrediWave's MyTV will enable everyone in the household to use their television as an extension of their lifestyle," said Qu. "It will deliver a reservoir of useful information and entertainment content that provides distributors with an ongoing flow of revenue opportunities and create a unique profile for future marketing purposes."

Strong Value Proposition for Cable and DBS Systems

The U.S.-developed PrediWave technology (PrediWave(TM), PrediWay(TM), PrediCast(TM), PrediMatrix(TM)) is based on a predictive statistical algorithm or "wave", and built around a streamlined packet-based standard system incorporating patented hardware and software. This unique advantage enables PrediWave's Digital Broadband Delivery System to utilize one stream of bandwidth per piece of content, rather than one increment per customer. As a result, PrediWave enables VOD to be delivered in a manner that requires the smallest amount of bandwidth to date, even on a one-way system, allowing satellite and cable operators to give viewers the control they desire without encountering bandwidth bottlenecks.

PrediWave's system consists of head-end servers and individual set-top boxes providing DVD quality, VOD content and PVR capabilities. Adding VOD servers is all that is necessary to expand the system's capacity. The satellite operator simply needs to dedicate one 30Mb/s channel for each two-movie VOD server. In addition, the system can expand to provide interactive television, streaming media, games, high speed Internet access and voice exchange as the operator upgrades to bi-directional services. Each PrediWave system is tailored to the needs, business strategies and growth expectations of its satellite and cable customers.

About the Company

PrediWave is pioneering a complete digital broadband delivery system. 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 2001, PrediWave entered the Chinese marketplace and successfully deployed its trial system with Beijing Cable Company (BCTV). PrediWave and Fujian Cable Company established an agreement to provide 4.6 million PrediWave STBs to Fujian customers from 2002. 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.