TANDBERG Television to Power USDTV's MPEG-4 AVC Digital Terrestrial Pay-TV Service; Integrated Video Solution Will Enable USDTV to Offer Customers Additional Content Choices by Reducing Digital Spectrum Requirements by Half.

ATLANTA -- TANDBERG Television (OSE:TAT) today announced that its pioneering MPEG-4 AVC digital compression solution has been deployed by U.S. Digital Television, LLC (USDTV) to maximize bandwidth usage and expand customer content choices for USDTV subscribers. Through the agreement USDTV, a low-cost wireless pay-TV service provider, will become the first broadcast television service provider in the U.S. to convert its entire network from MPEG-2 to MPEG-4 AVC encoding. The deployment of TANDBERG Television's integrated MPEG-4 AVC solution will give USDTV superior quality video streams and more than double the amount of content the company can offer its customers.

As part of the agreement, TANDBERG Television will provide end-to-end broadcast encoding systems based on its industry leading MPEG-4 AVC compression technology. The fully integrated 28+2 MPEG-4 AVC SD system will be comprised of TANDBERG EN5930 encoders with Reflex(TM) statistical multiplexing, MX5640 multiplexers and nCompass control, which is used to transmit programming content via satellite. USDTV sends encrypted cable channels via satellite to local TV station partners where they are distributed over the air along with the broadcasters' primary channels.

Once the compressed video signals reach the consumer's home, USDTV's unique MPEG-4 AVC to MPEG-2 transcoder produces DVD-quality images on any analog or digital television. USDTV's proprietary transcoding device ensures a smooth transition for existing customers who simply plug it into the USB port of their existing set-top-boxes. USDTV recently announced its second-generation set-top-box, which includes integrated MPEG-4 AVC capabilities and will be launched later this year.

"We selected TANDBERG Television's compression solution because it maintains, and even improves, our video offering while expanding the amount of content we can offer our customers," said Paul Boyden, Vice President of Engineering and Product Development for USDTV. "The system provides us with increased bandwidth efficiencies and controls that enable us to ensure our customers receive an outstanding viewing experience."

"We are delighted to forge this new relationship with U.S. Digital Television," said Lisa Hobbs, senior director of business development, satellite and broadcast, for TANDBERG Television. "The use of MPEG-4 AVC compression in a terrestrial environment is likely to be the future of digital terrestrial television, and USDTV has shown that the future is here today."

About U.S. Digital Television

USDTV was formed in 2003 as the first "over-the-air" terrestrial digital subscription TV service in the United States. and offers consumers a low-cost alternative to cable. The service is broadcast to customers for $19.95 a month, using the digital signals of local TV station partners. Customers receive USDTV with a standard VHF/UHF antenna and a proprietary digital TV converter box. USDTV averages 30 all-digital channels per market and enables viewers to receive high-definition pictures and surround sound, when available from their local broadcast stations. The USDTV set-top box produces a DVD quality picture on any TV and an HD quality picture and digital surround sound on an HD-ready TV with home theater equipment. U.S. Digital Television, LLC was formed in 2005 with investments from Fox Television Stations, Inc., Hearst-Argyle Television, Inc., LIN TV Corp., McGraw Hill Broadcasting, Morgan Murphy Stations, and Telcom DTV, LLC. The company currently serves subscribers in Dallas/Fort Worth, Salt Lake City, Albuquerque, and Las Vegas. USDTV is headquartered in Salt Lake City, Utah. (www.usdtv.com)

About TANDBERG Television

Whether it's advanced compression systems, on-demand or interactive television, TANDBERG Television delivers the technology and expertise that is moving digital video forward. The company's award-winning solutions are used by the world's leading network operators, broadcasters and content owners to deliver new viewer experiences and advertising opportunities. With a broad suite of open, standards-based products, TANDBERG Television offers the highest quality digital TV solutions including IPTV, HDTV, video-on-demand, advertising on-demand, and interactive TV applications to customers in the Americas, Asia Pacific, Europe, Middle East and Africa. For more information, please visit www.tandbergtv.com.