PrediWave Unveils First VOD & Broadband Delivery System Compatible with DOCSIS, DVB and IP Standards.

Business Editors/High-Tech Writers

The National Show 2003

Booth #2240

CHICAGO--(BUSINESS WIRE)--June 9, 2003

Debuting at NCTA, the "One-Size-Fits-All" Solution Simplifies and

Reduces Cost of Transporting Programming and Data

PrediWave(TM), a global pioneer in providing cost-effective and bandwidth-efficient technologies for the delivery of video-on-demand (VOD), interactive TV (iTV) and PVR, has once again taken a technological leap forward in television technology as the first company to adapt its unique VOD platform to multiple standards. To be unveiled this week at the NCTA -- The National Show, PrediWave's breakthrough Digital Broadband Delivery Service will now operate on DOCSIS, DVB and IP standards, creating a flexible and economically attractive VOD solution for all broadband, cable and DBS operators. PrediWave's new multi-standard platform supports the delivery of all current and future video, audio, and data services, simplifying and reducing the cost of transporting those services. The enhancement further enables PrediWave to supply content to all homes connected by cable, wireless, satellite or Ethernet.

Show attendees will be able to view PrediWave's cable and satellite VOD solutions at booth #2240. Now being deployed in nearly four million homes in China, the company continues to deliver technology advancements that will provide a more compelling entertainment system for end users, while offering competitive advantages to its customers, partners and the industry. The NCTA Show runs from June 8-11 in Chicago, IL at McCormick Place.

"By making our systems compatible with DOCSIS, DVB and IP standards, we broaden the application of our technology to enable all forward-thinking innovators in the cable, satellite and broadband industries to discover the economic and bandwidth advantages of our solutions," said Wen Jun Shi, Vice President and Director of the Board of PrediWave. "Furthermore, it expands our ability to capitalize on the rapid expansion of satellite, terrestrial and Ethernet connectivity on the North American continent," said Tony Qu, President of Prediwave.

PrediWave's turnkey innovative solution to home content delivery enables the distributor to reach an unlimited subscriber base with programming or data for a fraction of the cost incurred using traditional VOD delivery technology. PrediWave's core technology is based upon a predictive statistical "wave" which enables the VOD system to meet unlimited demands on the program stream. The PrediWave System, deliverable on one and two-way networks, provides video on demand (VOD), digital television (DTV) broadcasting, video on request (VOR) and personal video recording (PVR) capabilities.

ABOUT THE PREDIWAVE TECHNOLOGY

The U.S.-developed PrediWave technology (PrediWave(TM), PrediWay(TM), PrediCast(TM), PrediMatrix(TM)) is based on a predictive statistical algorithm or "wave". We offer both DOCSIS and DVB standard systems 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. Therefore, the system is scalable in programs and infinitely scalable in number of customers watching the VOD program since it effectively decouples them from the cable system hardware necessary to support the service. This approach allows PrediWave's Digital Broadband Delivery System to treat VOD as just another broadcast video service. 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 complete digital broadband delivery system supplies any type of content "on demand" to an unlimited number of customers simultaneously, initially featuring integrated VOD, digital television (DTV) broadcasting, video on request (VOR) and personal video recorder (PVR) services. This adaptable delivery system can be expanded to include a range of services including interactive TV, streaming media, games and high-speed Internet access.

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's necessary to expand the system's capacity. The cable operator simply needs to dedicate one 6MHz channel of 27Mb/s for two VOD programs. The satellite operator needs to dedicate one 36Mb/s transponder for three VOD programs. 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 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.