Verimatrix's VCAS to Secure Russian IPTV Deployment; Verimatrix in First Interactive Television Service for the Siberian Region of Russia.

SAN DIEGO -- Verimatrix, developer of the most widely deployed IPTV content protection system with tier one operators, today announced that its Verimatrix Content Authority System (VCAS) has been selected by Norilsk-Telecom for the first ever interactive television service for the Siberian region of Russia. Norilsk-Telecom, the telecommunications leader for this region, will offer local and popular international channels, films and interactive services. The project will begin in Norilsk and will ultimately include Norilsk-Telekom's subscriber base to tens of thousands of users.

Russian systems integrator and software development company, CTI, is charged with the integration of the Norcom deployment. The company has a long track record of IP communications projects and is an established IPTV partner of Verimatrix, working with the company on other successful IPTV deployments across the Russian and trans-polar regions.

"Given the significant investment required to roll out a complete IPTV service and the critical importance of securing high value content to attract loyal subscribers, it was vital that we deploy the most reliable system possible with the best possible channel suppliers," said Deputy General Director Evgeny Nickolaev, Norcom. "Verimatrix's VCAS system is an essential part of offering a good-quality service - without this security we would not be able to source the compelling content from providers and protect our revenue streams."

VCAS is a software-based solution designed to address the increasing security requirements imposed on video-over-IP systems. It is built on the principles of Public Key Infrastructure (PKI) and X.509 digital certificates, offering the most robust security solution for content streams in order to allow IPTV operators to secure premium content such as early release Hollywood blockbusters and key sporting coverage.

"Verimatrix is our preferred partner for IPTV content security as we have found no other product that can match VCAS for robust reliability and ease of integration with our iVision middleware," commented General Director Igor Maslenikov, CTI. "We have established a great working partnership and feel that we can rely on Verimatrix's engineers to support our IPTV projects and ensure the highest levels of customer satisfaction - a critical factor in our industry."

About CTI

CTI - Communications. Technology. Innovations is a Russian systems integrator and software development company specializing in IP-communications. The CTI suite of software products includes IPSoft Billing, HelpDesk, and the IPSoft Recording Suite. CTI provides IP-telephony, IP TV, Call-/Contact-Centers solutions, components of OSS/BSS systems, multiservice IP-networks for service providers and corporations. It implements complex projects, audit, consulting, e-learning, support. CTI is a member of TeleManagement Forum, Association CRM and Russian Association for Networks and Services. To find out more about CTI products and solutions www.cti.ru

About Norilsk-Telcom

"Norilsk-Telecom" was founded in 2003 based on the communication department of JSC MMC "Norilsk Nickel" to provide telecommunication services for business, government and domestic viewers within the Norilsk region. The company belongs to a Polar Division of JSC MMC "Norilsk Nickel". "Norilsk Telecom" conducts maintenance of communication and distribution networks and is the biggest internet provider in the Taymir Dolgano-Nenetsky autonomous region. More detailed information can be found on web site www.norcom.ru

About Verimatrix

Verimatrix is the leading provider of digital content protection solutions with a global customer base including leading telecommunications providers in Europe, North America and Asia. Verimatrix offers provider approved, carrier-class solutions specifically for today's bi-directional Pay TV. Through the seamless integration of patented digital watermarking technology into its best-of-breed encryption solutions, Verimatrix protects content and revenue streams, as well as detects digital piracy wherever it occurs within the distribution chain. Verimatrix has excellent relationships with the major Hollywood studios by providing valuable anti-piracy solutions for the fight against rampant digital piracy. For more information, please visit www.verimatrix.com.