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Technology Stocks : NUKO INFORMATION SYSTEMS

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To: janski who wrote (2190)6/17/1997 1:54:00 PM
From: Alan Aronoff   of 3509
 
MILPITAS, Calif.--(BUSINESS WIRE)--June 17, 1997--DiviCom Inc. (NASDAQ:CUBE),
a leading provider of digital video solutions for satellite and terrestrial networks, announced that
Distribuidora de Television Digital (DTS) -- an organization headed by Telefonica of Spain, with
Television Espanola (Spanish TV), and the Mexican company Televisa -- has selected
DiviCom's high-performance compression system for the Spanish Digital Platform (V!a Digital).
The decision was the result of an exhaustive and thorough technical analysis, by Telefonica, of the
various technology choices available.

The encoding system employs sophisticated preprocessing, noise reduction, encoding algorithms,
and statistical multiplexing to fit more than 100 channels of high-quality digital video, audio, and
data onto a single satellite.

According to Javier Izquierdo Mart!n, TV projects manager at Telefonica in Madrid, "With this
compression system, it will be possible to offer subscribers the widest possible choice, since
programming can originate not only from the principal content provider, but any other European
provider as well." Telefonica projects that by the year 2000 it will have a considerable number of
subscribers, many of which are expected to be outside Spain. Service is expected to begin this
year, on September 1.

"We're gratified by Telefonica's choice of DiviCom for its digital platform," said Tom
Lookabaugh, DiviCom's senior vice president and general manager. "We are convinced that our
commitment to state-of-the-art technology firmly anchored on open standards, and DiviCom's
general reputation were a prime consideration in Telefonica's decision. This is one more
opportunity we now have to expand our global presence and meet the European market's unique
requirements."

DiviCom Inc.

DiviCom develops and integrates products and systems that make digital video networking
possible. Products include audio/video encoding and decoding systems, and integration consulting
and implementation services. Based on the MPEG-2, DVB, ATM and SNMP international
standards, DiviCom's products enable digital video broadcasting over a variety of networks
including satellite, wireless, fiber, and cable.

DiviCom is a wholly owned subsidiary of C-Cube Microsystems, Inc. (NASDAQ:CUBE), and
both companies are based in Milpitas, Calif. C-Cube is the industry leader in the development
and delivery of highly integrated digital video silicon solutions that address the consumer
electronics, communications and convergence markets.

In the U.S., DiviCom can be reached by phone at +1-408-944-6700, by fax at
+1-408-944-6705, or via the World Wide Web at divi.com . In Europe, DiviCom
can be contacted at +33 1 48 62-9212 (Paris) or +44 1 753 71-4367 (London), or faxed at
+33 1 48 62-9236 (Paris) or +44 175 354-0990 (London).

CONTACT: DiviCom Inc.
Anne Hohenberger, 408/490-6688
E-mail: anneh@divi.com
divi.com
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