Sky Heralds Revolutionary Integrated Digibox and Personal Television Recorder; New Product to Launch in Q1 2001.

Business Editors/High-Tech Writers

LONDON--(BUSINESS WIRE)--Sept. 7, 2000

British Sky Broadcasting (NYSE: BSY) today announced that Europe's first integrated Personal Television Recorder - which will combine an enhanced digital satellite set-top decoder with a 40 gigabyte advanced hard-disk recording facility - would go on sale to the general public in the UK in Q1 2001.

The announcement of the new product and its specifications were made to coincide with the start of the annual International Broadcasting Convention being held in Amsterdam.

Sky's integrated Personal Television Recorder will allow for the recording of up to 40 hours of programming - in the original digital quality - and will enable viewers to:

- Pause live digital satellite television broadcasts - viewers will no longer
miss crucial moments when they are interrupted in the middle of a programme

- Record current and future programmes for later viewing at the touch of a
button - no need to set the clock or search for a spare videotape

- Automatically record every episode of a series - viewers will never miss
their favourite programmes again

- Control all recorded programmes just like a VCR (pause, rewind, fast-forward)

In another first, Sky's integrated Personal Television Recorder will include two digital satellite tuners, meaning that digital satellite television viewers in the UK will be able to watch one live digital programme (or a previously recorded digital programme) while simultaneously recording another for viewing at a convenient time.

The recorder will utilise an extended version of SkyGuide, the electronic programme guide currently in use in 3.8 million Sky digital homes, allowing viewers to record programmes across the next seven days at the touch of a single button. In addition, the fully integrated system means that the all the functionality is incorporated in one single set-top box, using a single remote control.

Unlike other recording devices, Sky has chosen a technology that will record the original encrypted digital signal, ensuring both the quality of the digital recording and the security of the system.

"The first truly 21st century home entertainment product"

Sky's Chief Executive Tony Ball said:

"Sky's integrated Personal Television Recorder is the first truly 21st century home entertainment product. It gives viewers greater power to choose what they want to watch when they want to watch it.

"Sky was the first to launch digital television in the UK; the first to introduce interactive services; the first to let viewers shape how they watch programmes with enhanced channels such as Sky Sports Extra and services such as Sky News Active. Yet again we're leading the way and clearly positioning Sky digital as the leading multichannel platform in the UK."

Technology partners

Sky's integrated Personal Television Recorder is the culmination of two years' development work by Sky and its technology partners NDS, NEC, Open TV and Pace Micro Technology.

The unit incorporates NDS's XTV(TM) technology, which enables personalised TV services as well as encrypted recording of all content to be stored on the hard disk, ensuring that decryption of that content remains under the control of the NDS conditional access system.

OpenTV has developed a new multi-pipeline operating system for the device that includes extensions for the hard disk functionality and control of twin digital satellite tuners.

The recording functionality has been integrated into a Sky digibox using hard disk interface and indexing hardware developed by NEC, and the NEC `EMMA' single chip set-top box solution.

The hard disk drive and dual tuner integration has been completed by Pace, which will also manufacture the integrated Personal Television Recorder.

Dr Abe Peled, President and CEO of NDS Group plc, said: "The new XTV(TM) enabled device provides Sky digital viewers with the world's most advanced Personal TV experience. Once again NDS and Sky are at the forefront of providing UK television viewers with powerful yet easy to use cutting edge technology. I look forward to working with Sky digital to ensure that consumers obtain a more fulfilling experience through combining a hard drive with the digital set-top box."

Jan Steenkamp, CEO, OpenTV, said: "Enabling personalised television and providing viewers with choice remains a core focus for OpenTV. OpenTV's new advanced middleware solution establishes the engine and foundation of this exciting new capability. The UK represents the world's most advanced digital TV market (source: Strategy Analytics) and we will continue to drive this market and others forward, further establishing Sky and OpenTV as market leaders for advanced digital TV deployments."

According to Malcolm Miller, Pace's Chief Executive Officer: "Sky digital is continuing to drive the revolution of digital TV in the UK, by launching new interactive services and features. With its new integrated Personal Television Recorder, Sky digital will create the concept of personalised television in the UK, providing viewers with new, easy-to-use features which they have never had before. We are delighted that Sky digital will be the world's first broadcaster to launch Pace's hard disk range of digital set-top boxes."

NEC Managing Director Tetsuya Hikino commented: "We are delighted to have been working with Sky on this innovative product. Sky has demonstrated once again, its pioneering approach by being first to market with an enhanced digital service. Research shows that Personal Television Recorders will greatly enhance the consumer viewing experience, and Sky has the capability to maximise the potential of such a service. This development program has been extremely exciting and challenging for all involved, and NEC is pleased to be playing a key role in the project's success by bringing its systems and silicon expertise to the party."

Three hardware choices

Mr Ball said that the introduction of the integrated Personal Television Recorder would complement Sky's existing offer of a free digibox and the forthcoming launch in the UK of TiVo's standalone Personal Television Recorder.

"By extending the range of hardware we offer to UK consumers, Sky is broadening customer choice. Through the introduction of the standalone TiVo Personal Television Recorder, and soon afterwards, the Sky integrated Personal Television Recorder, all UK TV homes can choose to access these great new features. The TiVo Recorder will work whether the viewer receives their television through terrestrial, cable, or digital satellite, while Sky's integrated Personal Television Recorder will offer additional enhanced functionality specifically for digital satellite homes."

The branding and price to consumers of Sky's integrated Personal Television Recorder, an unsubsidised premium product, will be announced in the lead up to the consumer launch.

About BSkyB

British Sky Broadcasting is the UK's broadband entertainment leader, delivering sports, movies, entertainment and news to 9 million households throughout the UK and Eire. The launch of the UK's first digital television service, Sky digital, on 1 October 1998, signalled the start of a new era in British broadcasting. It remains the fastest, most successful roll-out of a digital TV service in Europe, so far attracting 3.8 million customers.

Sky's strategy is to deliver and provide access to its compelling content and e-commerce services across multiple devices, including TV, mobile internet, ADSL and the web. Sky's online assets, including sky.com and skysports.com, attract more than 50 million page impressions a month.

Information about Sky can be found on the internet at sky.com/corporate.