SkyStream Corporation and Tiernan Communications Demonstrate Interoperable Broadcast Network for Internet and Broadcast Video Delivery.

AMSTERDAM, The Netherlands--(BUSINESS WIRE)--Sept. 10, 1999--

Companies Jointly Support Standards-Based

Broadcast Networking Solutions at IBC '99

SkyStream Corporation, a leading provider of broadcast networking solutions, and Tiernan Communications, a leader in digital television systems, today announced a working relationship and the demonstration at the International Broadcasting Convention of a technology achievement that integrates SkyStream's conditional access-based broadcast networking platform with the Tiernan Communications family of digital video broadcast products.

The resulting architecture is a fully interoperable DVB- (Digital Video Broadcast) compliant digital video and IP data broadcasting solution.

Together, SkyStream and Tiernan technology platforms enable television broadcasters to build high-performance, secure video and data broadcast system that can be integrated with any industry-standard conditional access solution.

The two companies decided to embark on the integration of their technologies based on customer demand for an open, standards-based architecture that enables them to choose best-of-breed components. Television broadcasters have been seeking a way to leverage existing broadcast spectrum to send secure broadcast video and Internet data to consumers and businesses. As the demand for broadband communications has increased so has the use of over-the-air and satellite-based communications to send Internet data via broadcast networks.

"Tiernan and SkyStream are building the next-generation of broadcast video networks that give broadcasters the performance and value that they need to deliver secure data and video broadcasting," said Steven Bonica, Tiernan Communications CEO. "Visitors to IBC saw how our products work together to provide interoperability with all broadcasting functions, including security."

"SkyStream is pleased to work with Tiernan in demonstrating the power of building open broadcast networks that securely support exciting broadband applications via today's existing broadcast bandwidth," said Jim Olson, president and CEO of SkyStream. "As we get closer to seeing television broadcasters play a role in the Internet Economy, we as vendors need to make standards and security a priority. Broadcasting will follow in the footsteps of the data communications industry, building its future networks on open architectures. Companies like Tiernan understand and have responded to this call."

SkyStream Networking Platform and Availability

SkyStream's technology includes the DBN media router series that provides broadcasters with a selection of data broadcasting and security options. With a DBN-26 media router, a broadcaster can combine high-speed Internet or any IP-based content with an MPEG-2 video transport stream, and deliver it to any television set-top or PC-based receiver.

The SkyStream DBN-26 media router also features a complete conditional access security interface that enables broadcasters to offer tiered subscription services based on industry-leading DVB Simulcrypt conditional access solutions. SkyStream products are available directly from the company and through select resellers. The new software will be available on the SkyStream DBN-26 in October 1999.

Tiernan's Digital Television Technology

The Tiernan Communications product line includes a range of digital video compression encoders and IRDs, as well as ATM and NMS (Network Management Systems) solutions. The Tiernan TE600 encoder provides SDTV video services in a basic configuration suitable for fixed contribution application.

The TE60 is an advanced modular SDTV encoder, which can be configured to support additional features such as extra audio channels and network interface options. Tiernan's THE1 and THE10 encoders provide similar high-performance HDTV services, and the THE1 can be equipped to support multiple SDTV channels. Both DVB and ATSC modes of operation are supported.

Through Tiernan's unique patent-pending concatenated distributed multiplexing technology, any number of encoders can be multiplexed into a single transport stream without requiring an external multiplexing unit. Tiernan equipment comes complete with support for the PGCA conditional access system, a proprietary system designed to provide a level of signal privacy and conditional access suitable for many, but not all, professional applications.

By providing the transport stream output of a Tiernan encoding subsystem to the SkyStream DBN-26, the conditional access capabilities of the system can be extended to included any of the many third-party systems which conform to DVB Simulcrypt specifications.

About SkyStream

Based in Mountain View, Calif., SkyStream provides the industry's first interoperable networking platform for satellite, cable companies and local television stations to securely broadcast popular Internet content and corporate data to consumers and businesses. SkyStream's products are deployed at some of the leading satellite, cable and DTV companies in the U.S. and around the world.

SkyStream customers include Cablecom, EchoStar Communications Corporation, Loral Orion and Telefonica. SkyStream partners include BroadLogic, Harris Corporation, International Datacasting, Nagra, Philips, Scientific-Atlanta and Tektronix. Satellite Communications magazine awarded SkyStream's NPO (Null Packet Optmization) software - "Best Data Product of the Year" for 1998. SkyStream has regional offices in Atlanta, Georgia, and London, England.

For more information, please go to www.skystream.com or contact SkyStream Corporation at TEL: [phone]; FAX: [phone]; EMAIL: [e-mail]

About Tiernan

Tiernan Communications designs, develops, manufactures and markets a full line of digital television compression and transmission equipment. Tiernan equipment is used worldwide by broadcasters, cable operators, common carriers, software designers, computer engineers and Internet Service Providers, to achieve the highest levels of quality, performance and economy in the distribution of digital video and audio content.

The company's products are essential in digital television operations, satellite news gathering, telephony, the distribution of television programming via satellite and terrestrial networks, and Internet and intranet applications. Tiernan products meet or exceed the most rigorous industry quality standards. Tiernan Communications is globally recognized for its excellence in technology, product innovation, overall value and customer support. More than 1000 Tiernan digital television systems are presently operated by over 250 users in some 25 countries.

For more information, please go to www.tiernan.com or contact Tiernan Communications, Inc., 5751 Copley Drive, San Diego, CA 92111 USA; TEL: [phone]; FAX: [phone]; EMAIL: [e-mail].

Note to Editors: SkyStream is a trademark of SkyStream Corp. Additional company and product names may be trademarks or registered trademarks of the individual companies and are respectfully acknowledged.