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 KNOXVILLE, Tenn., and SAN JOSE, Calif., Jan. 13 /PRNewswire/ -- Philips Digital Videocommunications Systems and Compression Labs, Inc. (CLI) (NASDAQ-NMS: CLIX) announced today they have been chosen by Bell Atlantic (NYSE: BEL) as suppliers of Digital Entertainment Terminals for the first commercial digital television and information networks to run over telephone lines.
 This video-on-demand system, a roadbed of the National Information Infrastructure, is scheduled to begin operation later this year.
 The intelligent interactive terminals, to be developed and manufactured by Philips and Compression Labs, will enable subscribers to connect their television sets to their telephone lines, providing consumer entry onto America's digital information superhighway. Philips and CLI are designing and delivering two configurations that are essentially identical in function: one for use on existing copper twisted pair networks with ADSL technology, and the other for fiber-to- the-curb networks.
 The Philips/CLI terminals will decode compressed digital signals entering the home over the phone network into a standard signal usable by conventional TVs and stereos. The terminals will use the MPEG-2 (Moving Picture Experts Group) international standard for digital video compression, and the MPEG-specified Musicam audio system. They will contain microprocessing capabilities equivalent to a powerful personal computer and have a total of more than 5 megabytes of RAM memory. Performance will exceed that of existing conventional TV broadcast and cable systems, offering picture resolution of 720 by 480 accompanied by CD quality sound.
 The Philips/CLI terminals will hook up easily to the telephone line, TV and stereo system. A sophisticated, easy to operate graphic user interface and a wireless remote control will guide viewers through intuitive (menu/option) on-screen selection of a new world of television choices.
 Consumers using TV sets equipped with these terminals on Bell Atlantic's networks will have convenient access to a wide range of exciting programs. They will be able to order movies and other video programs (such as health care, educational and children's shows) by pointing and clicking an on-screen cursor at symbols and menus on the TV screen. This will be available initially in Bell Atlantic's test of programming on demand within the next six months. Eventually, people will be able to use their TVs to pay bills, bank and go shopping, as well as watch their favorite entertainment programs.
 "The advent of digital compression for video-on-demand systems represents the most significant breakthrough in television since color," noted Bill Kennedy, senior vice president, Philips Digital Videocommunications Systems. "Philips is a world leader in television and digital interactive multimedia systems, and is therefore ideally suited to deliver information and entertainment programming through a new generation of advanced yet flexible consumer electronics products."
 John E. Tyson, president, CEO and chairman of Compression Labs, said, "The experience gained by CLI providing set-up decoders for Bell Atlantic's initial video-on-demand marketing trial in northern Virginia enabled CLI to design key network components for the new Bell Atlantic digital entertainment terminals. Bell Atlantic's video-on-demand system is a key example of emerging markets for our compressed digital video technology. The combination of Philip's TV and consumer product expertise and CLI's extensive experience with compressed digital video makes possible an innovative new approach to TV programming delivery."
 Philips and CLI have put their pioneering work in digital technology development together with a real-world design philosophy and a shared vision for the future of television. Together, Philips and CLI engineers have worked for more than a year to define the requirements of the emerging Bell Atlantic systems.
 Philips, the world's largest manufacturer of color televisions and a pioneer in digital home entertainment technology, and CLI, a leading provider of digital compression-based video equipment, already have experience in the field.
 One example of Philips' expertise in merging interactive multimedia technology with home entertainment is the recent delivery of a Digital Video upgrade cartridge for the Compact Disc-Interactive (CD-i) system. The cartridge uses MPEG digital video compression to deliver full screen, full motion programs, such as interactive games and feature films, from the five-inch CD-i discs.
 Philips' U.S. DVS group is among the world's pre-eminent television, video and audio technology development and signal transmission operations. The group is based at Philips Consumer Electronics Company, Knoxville, where nearly 300 engineers work together with hundreds more at Philips Laboratories in Briarcliff Manor, N.Y. The DVS group also includes Philips Broadband Networks, Inc., a major manufacturer of video signal distribution equipment to the cable industry based in Manlius, N.Y., and BTS Broadcast Television Systems, Inc., manufacturer of analog and digital video equipment for use in studios and the field.
 Compression Labs, Inc., based in San Jose, was founded in 1976 and is a leader in the Compressed Digital Video (CDV) communications arena. The company's CDV technology digitizes and compresses full-motion video signals to dramatically improve the economics of transmitting them over communications networks. In addition to videoconferencing, which continues to represent an important part of the company's business, CLI has leveraged its CDV technology across a spectrum of new communications applications such as broadcast television, personal video and HDTV.
 -- Video on demand
 -- Television viewing
 -- Home shopping
 -- Interactive games
 -- Information services/transactions
 -- Input from broadband fiber-to-the-curb or ADSL over twisted pair
 -- Processes MPEG-2 transport streams up to 15 mb/s
 -- Decodes MPEG-2 and MPEG-1 video up to 15 mb/s
 -- Decodes up to CCIR-601 resolution (720 by 480) using 2 megabytes
 -- Control system with 1 Mbyte Flash and 2 Mbytes DRAM
 -- MPEG/Musicam audio system
 -- Sophisticated on-screen graphics processing with full resolution
 and special effects capabilities
 -- Shares essential technology with Compact Disc-Interactive through
 MPEG-1 compatibility, OS-9 operating system, use of
 Motorola 68000 family microprocessors, and CD-i graphics
 -- PCMCIA, RS232, magnetic card reader
 -- X.25 based upstream communication link to network service
 -- Baseband and RF outputs
 -0- 1/13/94
 /CONTACT: Jon Kasle of Philips, 615-521-3274, or Joyce Strand of Compression Labs, 408-922-4610/

CO: Philips Digital Videocommunications Systems; Compression Labs,
 Inc.; Bell Atlantic Corporation ST: Tennessee, California, Pennsylvania IN: CPR TLS ENT SU: CONT

MJ-LJ -- PH004 -- 1724 01/13/94 09:44 EST
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Publication:PR Newswire
Date:Jan 13, 1994

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