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Technology Stocks : Innovacom (MPEG), [announced single chip MPEG-2 encoder]
MPEG 0.0002000.0%Feb 6 9:30 AM EST

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To: Ron Mayer who wrote ()9/26/1996 11:11:00 AM
From: AID   of 6297
 
Does anyone know anything about the technology involved here? Below I repost a couple of postings I have found on the WEB:
IBM ANNOUNCES THE WORLD'S FIRST MPEG-2 DIGITAL
VIDEO SINGLE-CHIP ENCODER

March 28, 1995

FISHKILL, N.Y. -- IBM today introduced the world's first commercially available semiconductor chip that can
compress, or encode, the large amounts of data required to transmit and store digital video pictures, frame by frame.
The power to do encoding on a single chip will make it more cost effective for movie makers to design special effects,
for broadcasters to transmit video across cable and satellite networks and for office workers to design eye-catching
business presentations.

The chip is called the IBM MPEG-2 I-Frame Encoder, after Moving Pictures Experts Group, a working group of the
International Standards Organization, that has developed the primary standard for transmitting digital audio and video
signals. I-frame refers to the intermittent frames used in high-speed compression and decompression. IBM's
single-chip video encoder will significantly bring down the cost of MPEG-2 I-frame video compression.

At the same time, IBM also introduced its enhanced MPEG-2 Decoder chip aimed at the consumer electronics market
for products that, among other things, bring enhanced functions to PCs and televisions, as multimedia applications
begin to blur the roles of those devices.

For example, the encoder and decoder devices could appear on video cards with additional editing features and that
could be plugged into desktop PCs to perform multimedia functions. Such multimedia cards could be purchased and
used for professional editing situations: the video playback could be used to edit a commercial for television, or to
combine video pictures with sound to sell a house.

The same video decoder chips could also appear in interactive televisions' digital set-top boxes to provide movies on
demand or to play interactive video games; or in consumer products that will allow video CD-ROMS to be played on a
computer; or in future generations of VCRs.

Together, IBM's MPEG-2 I-Frame Encoder and MPEG-2 Decoder provide a "matched set" of chips that compress
video data at one end and decompress it at the receiving end. The chips will be sold to original equipment manufacturers
(OEMs) for use in their products or for new applications. Both products are also compatible with the earlier MPEG-1
standard. The encoder and decoder will be demonstrated at the upcoming conference of the National
Association of Broadcasters (NAB) from April 10-13 in Las Vegas.

Data compression and decompression are becoming increasingly key to such industries as the broadcast, movie and
telephone businesses, which continually require larger storage facilities for digital images and more bandwidth for the
transmission of video pictures and audio. The techniques of compressing, or encoding data at one end, and then
decompressing, or decoding data at the receiving end, are particularly suited for digital video. That's because of the way
the human eye "fills in" color or brightness even if every point in a screen's picture is not transmitted to the receiver.

"IBM is committed to delivering advanced, cost-competitive digital video products to the professional video and
consumer electronics markets," said Frank Zurla, product manager, digital video products, IBM Microelectronics*.
"These MPEG-2 devices give the digital marketplace a powerful set of chips that provide real-time solutions for
encoding and decoding with the best possible video quality."

The sophisticated MPEG-2 compression and decompression algorithms used in these products were jointly developed
by the IBM Microelectronics and IBM Research divisions. Dr. Cesar Gonzales, senior manager, video and image
technologies, IBM Research, said, "The low cost of this encoder will enable the creation of MPEG-2 content, such as
movies or interactive video applications, at costs that are no longer prohibitive."

PRICING AND AVAILABILITY:

Both MPEG-2 chips use IBM CMOS 5L technology, are 0.5 micron and 3.3 volts. The encoder, packaged in a 304-pin
ceramic quad flat pack (CQFP), costs $700 per unit in OEM quantities of less than 50. General availability is scheduled
for July. The decoder, packaged in a 208-pin CQFP, is priced at less than $35 per unit in set-top box quantities.
General availability is expected in April.

IBM, headquartered in Armonk, N.Y., is a supplier of integrated microelectronics technologies to a growing number of
companies worldwide. Its products range from semiconductor design and fabrication to complete and fully tested
functional assemblies. IBM Microelectronics, headquartered in Fishkill, N.Y., is responsible for developing,
manufacturing, marketing and selling these products and technologies.

# # #

*IBM Microelectronics is a trademark of International Business Machines Corporation.

Readers interested in additional information on IBM Microelectronics' Digital Video offerings should call
1-800-IBM-0181, extension 1503.

Pricing is current as of March 27, 1995 and is subject to change without notice. Prices are in U.S. dollars.

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