Thomson Announces New Advanced Compression Video Platform For DSL and IP Networks.

Business Editors/High-Tech Writers

LAS VEGAS--(BUSINESS WIRE)--Nov. 13, 2003

Flexible Platform Developed in Conjunction with Intel Will

Enable Faster Delivery of Video; Industry Leaders

Microsoft TV and Alcatel Express Support

Leveraging more than 15 years experience in developing digital video technologies, Thomson today unveiled a new video delivery platform, using advanced video compression technologies, that will enable telecommunications operators to deliver a suite of home entertainment services over existing broadband networks such as DSL. Designated Cobra, this flexible Intel

Architecture-based platform will support current and next-generation video compression technologies (CODECs) including MPEG-2, MPEG-4 Part 2, Windows Media 9 Series, and MPEG-4 Part 10 (JVT). The advanced compression technologies make it possible for telephone companies to deliver high quality audio and video entertainment to large audiences of consumers through existing DSL networks. The Cobra Platform is being demonstrated publicly for the first time at the TelcoTV conference here this week.

The Cobra Platform represents the next step in Thomson's strategy to deliver cutting edge digital technologies for operators of all major networks - satellite, cable, and telephone - to deliver rich and engaging home audio and video entertainment to consumers around the world. In the ten years since Thomson co-developed the digital home satellite receiver, the company has launched further technologies to allow the delivery of digital home entertainment through over-the-air networks, cable networks, and now, DSL networks. Unlike other video distribution networks, IP networks (such as DSL) connect the operator directly to the viewer. A direct, two-way connection allows fully interactive, one on one transactions between viewers and operators, such as instant video on demand, ecommerce, and a multitude of other types of viewer interactivity such as online gaming.

In developing the Cobra Platform, Thomson has worked closely with industry leaders Intel, Microsoft TV and Alcatel, to create a sophisticated and efficient platform for delivery of a wide range of services including Internet, audio and video content and gaming.

"Advanced compression is the pivotal technology for Telcos to cost effectively provide rich home entertainment services over DSL networks," commented Baudouin de la Tour, VP of Thomson's DSL Business. "Thomson has gained extensive MPEG-2 experience from the development of the DIRECTV system and our two current IP Video decoders, the RCA DSL 1500 and RCA IP 900. By combining our video expertise with our proven leadership in DSL modems, Thomson has the necessary technological capabilities to drive this emerging business forward, with our telecom customers, into the mainstream. Our dedicated team of engineers and researchers in Indianapolis and Princeton, in collaboration with Intel, have optimized advanced compression capabilities for the Cobra Platform," he added.

Industry Support

In developing the Cobra Platform, Thomson reached out to industry leaders Intel, Microsoft and Alcatel, who today expressed their support.

The system architecture, co-developed by Thomson and Intel for this project, incorporates an Intel Architecture-based processor and chipset. "Intel views the convergence of computing, communications and consumer electronics as a strategic opportunity for developing a wide array of new products and services, and we are working closely with Thomson on a variety of development activities," stated Glenda Dorchak, Vice President, General Manager, Consumer Electronics Group, Intel. "We see tremendous value in the IP video marketplace and intelligent, flexible solutions based on Intel building blocks are critical for moving this category forward."

The Cobra Platform was designed to accommodate a series of next generation compression schemes, including the high quality and compression efficient Windows Media 9 Series: "We see the Cobra Platform as a way to quickly evolve IP-TV through making the right hardware available to enable exceptional home entertainment via networks like DSL. We look forward to working with Thomson on specific projects incorporating Cobra," said Phil Corman, Director of Partner Business Development for Microsoft TV. Microsoft TV recently announced a new solution for IP networks, for which Thomson is a supporter.

Thomson and Alcatel , the global DSL market leader have been working together for several years in broadband entertainment solutions for telecoms. "Alcatel is strategically focused on providing multimedia solutions for our customers to achieve the triple play of voice, data, and video," said Derek Kuhn, director of marketing for Alcatel's broadband entertainment activities. "Video represents a significant opportunity for our telecom customers, and Thomson's Cobra Platform is an ideal way for them to deliver video entertainment to consumers."

"The support of Intel, Microsoft and Alcatel for the Cobra Platform validates our strategy of developing an advanced technology that will jump start the IP Video business," commented Keith Wehmeyer, General Manager, Thomson's IP Video Business. "We are very pleased to cooperate with such prestigious industry leaders and we look forward to working together."

The Cobra Platform

The platform was designed to be flexible - supporting all major next generation compression technologies and enabling a variety of product configurations, which can be built upon one another. The platform will support a complete range of set-top boxes to suit the needs of various markets, such as:

-- A basic set-top box receiver that delivers streaming audio and

video content and supports interactive applications.

-- A set-top box receiver with a hard-drive to receive video on

demand programming over DSL networks.

-- A set-top box receiver with a hard-drive and tuners to support

advanced personal video recorder (PVR) capability for easy to

use program recording and playback.

-- A set-top box receiver with a hard-drive, PVR capability, and

an optical drive such as CD or DVD for program recording and

playback.

Cobra's flexible, powerful design makes many configurations possible to suit the needs of markets around the world. "Our evaluations with key customers make it clear there is a need for an adaptable solution, with support for advanced video compression technologies, that can be easily modified to suit a wide variety of operator business models. Because the platform has been designed from the ground up to be highly flexible and adaptable, we expect it to continue to evolve, keeping pace with technological advancements," Wehmeyer added.

Certain statements in this press release, including any discussion of management expectations for future periods, constitute "forward-looking statements" within the meaning of the "safe harbor" of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements due to changes in global economic, business, competitive market and regulatory factors. More detailed information on the potential factors that could affect the financial results of Thomson is contained in Thomson's filings with the U.S. Securities and Exchange Commission.

About Thomson

Thomson (Euronext Paris: 18453; NYSE: TMS) provides end-to-end solutions (technologies, equipment and services) to the entertainment industries. To advance and enable the digital media transition, Thomson has four principal divisions: Content and Networks, Consumer Products, Components, and Licensing. The company distributes its products under the Technicolor, Grass Valley, THOMSON and RCA brand names. For more information: www.thomson.net

Thomson's Broadband Access Products activity, part of Thomson's Content and Network division, develops a complete range of broadband access solutions for satellite, cable, telephone networks and the Internet. The DSL business manages the Digital Subscriber Line (DSL) and IP Video product portfolios. It produces and markets DSL broadband modems, bridges and routers for Internet access, voice connections and video applications, and set-top boxes that receive video entertainment over IP networks such as DSL.