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Technology Stocks : C-Cube
CUBE 36.62-0.1%Nov 14 9:30 AM EST

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To: BostonView who wrote (37609)12/3/1998 2:04:00 PM
From: BillyG  Read Replies (1) of 50808
 
Thanks!! -- This version of the announcement has more details.......

3Com, C-Cube, DiviCom, MoreCom, Pioneer, and Zenith Join Forces to Showcase Digital Television, Web Access and Interactive Services; Two-Way Interactive HFC Becomes a Reality

ANAHEIM, Calif.--(BUSINESS WIRE)--Dec. 3, 1998--Highlighting the trend toward open standards-based systems, six leading vendors of digital television service solutions have teamed up for a CableNET'98 demonstration at the Western Cable Show: 3Com (Nasdaq:COMS), C-Cube (Nasdaq:CUBE), DiviCom (Nasdaq:CUBE), MoreCom, Pioneer (NYSE:PIO), and Zenith.

The "Digital Video and Internet Convergence at Work" demonstration is the first seamless, end-to-end solution for digital television and Internet on today's digital Hybrid/Fiber Coax (HFC) networks. The demonstration shows cable operators how Internet access, web casting, digital television and other interactive applications such as home shopping, are possible today using interoperable products from several vendors to form an end-to-end HFC network system.

The key beneficiaries of the demonstration will be cable operators with upgraded two-way HFC networks and subscribers of new digital-tier services. Each vendor participating in the demonstration has donated a component which is interoperable and makes use of standard Internet and digital television content. A detailed demonstration diagram can be found on the world wide web at morecom.com. The demonstration can be seen Dec 2-4 in Hall D of the Anaheim Convention Center in the CableNET exhibit area.

Real Broadband Digital Service Solutions

This demonstration is a major milestone for the cable industry. For the first time in over twenty years, cable operators will not be dependent upon a proprietary solution or a single supplier for advanced system components like consumer set tops and head end control gear. At the show, 3Com, C-Cube, DiviCom, MoreCom, Pioneer, and Zenith are announcing their individual products will support interoperable standards from the head-end and outside plant down to interactive services running in advanced digital set top models in subscriber homes. By delivering interoperability and open standards-based systems, these vendors provide new choices and options for cable operators planning to migrate to standardized two-way digital cable networks.

This trend is creating economies of scale that will help expand the digital cable-based services market. By the end of 1999, cable operators are expected to upgrade legacy networks to modern two-way digital broadband cable systems by choosing interoperable system components from a number of manufacturers.

Six Vendors, One Powerful Solution

The exhibit displays both a core and extension model of the current OpenCable specification and demonstrates the interactive services that can be delivered over the standards-based environment -- from the content supplier, through the head-end, across varieties of networks, and into subscribers' homes. Each vendor brings a unique area of product and market expertise to the demonstration.

DiviCom provided the interactive set-top box controller and the digital head-end compression and multiplexing system. C-Cube technology and silicon power the digital set-top boxes designed by Zenith and Pioneer. 3Com provided the Data Over Cable Service Interface Specification (DOCSIS) data network system and cable modems. MoreCom provided an end-to-end software solution, which enables the interactive application capabilities and the user interface.

At The Western Show, 3Com, C-Cube, DiviCom, MoreCom, Pioneer, and Zenith plan to present their individual products in addition to demonstrating how they work together. -0- *T For More Information Contact:

-- 3Com Corporation -- Rene Siegel, 925/485-5626, renes@home.com, www.3Com.com

-- C-Cube -- Melissa Malley, 408/490-8510, melissa.malley@c-cube.com, www.c-cube.com

-- DiviCom -- Ben Stanger, 408/490-6898, mediarelations@divi.com, www.divi.com

-- MoreCom -- Debbie Noll, 215/773-9400, dnoll@morecom.com, www.morecom.com

-- Pioneer -- Jim Slade, 201/236-4182, jslade@pnmt.com, www.pioneerdigital.com

-- Zenith -- John Taylor, 847/391-8181, john.taylor@zenith.com, www.zenith.com *T -0- More Information for Editors:

Q. How Will an Open Standards Environment Affect Cable Operators?

A. Open Standards Will Drive Increased Cable Revenue Opportunities

In an open standards environment, cable operators will directly benefit from a competitive marketplace for system gear and end terminal devices. They will be able to improve the management of their capital investments and operational expenses, while increasing revenues from a new business model. With real-time, two-way networks and advanced set-top systems, the revenue base for cable operators expands from the current base of subscribers, programmers and advertisers, to create a new client class of retail, utility and digital appliance service providers.

These new clients will generate additional cable service revenue streams from creative access and transaction business agreements with owners of two-way bandwidth. As the market begins to introduce 'always-on' products, the consumer and commercial industries will offer subsidized systems and services and add still more new business opportunities to the bottom line. This breakthrough will not only reduce the costs of deployment but will apply a well-known business model to introduce emerging e-commerce, retail and utility service appliances to a huge audience potentially covering many serving areas simultaneously.

Q. Is the Timing Right for Interoperable Solutions?

A. Yes, Both Cable Operators and Subscribers are Ready

Until recently, subscriber access to programs and other services was limited to simple electronic programming guides (EPGs) and pay-per-view movie purchases. However, with Internet content now abundant, and set-top boxes designed to be powerful application processors, cable operators can plan to introduce a growing variety of multi-tiered information and entertainment services.

Two-way digital cable systems designed to support standards such as DVB and DAVIC build a solid and mature infrastructure that will expand capacity, increase security and diversify service options for two-way HFC networks. To add to the excitement, platform-independent applications, written in standard languages such as Java and HTML, will support a common look and feel for Web content

Q. Why is this so important?

A. It's Not Just TV Anymore

Open standards-based systems, like the one highlighted in this demonstration, provide a means for cable operators to differentiate themselves from Direct Broadcast Satellite (DBS) providers by offering a flexible, robust and powerful service platform. These new interoperable systems are delivering quality that digital video and audio entertainment can provide, and they offer the consumer enhanced access to friendly 'always-on' push/pull information products.

Savvy cable subscribers will be able to take advantage of these new capabilities to improve their lifestyles with convenient access to information and information providers. Subscribers can also expect advanced digital cable services to help increase their work-at-home productivity and to provide customized services for the wired family.

About The Vendors

3Com: With more than 200 million customers worldwide, 3Com Corporation connects more people in more ways to information than any other networking company. 3Com delivers innovative information access products and network system solutions to large, medium and small enterprises; carriers and network service providers; PC OEMs; and consumers. 3Com -- More connected(tm). For further information, visit 3Com's World Wide Web site at www.3com.com or the press site at www.3com.com/pressbox.

C-Cube: C-Cube Microsystems Inc. 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. C-Cube is headquartered in Milpitas, California with offices in North America, Europe and Asia. Its stock is traded on the Nasdaq under the symbol CUBE.

DiviCom: DiviCom Inc. develops and integrates products that make digital video networking possible. Products include audio/video encoding, interactive set-top controllers, data broadcast solutions, network management systems, consulting and integration services. Based on the MPEG-2, DVB and ATSC international standards, DiviCom 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.

MoreCom: MoreCom Inc. is a privately held company founded in 1997 by television pioneers from General Instruments and Philips Electronics. Led by Ami Miron, MoreCom offers cable operators a complete end-to-end software solution for merging entertainment quality digital video with high-speed Internet via television. The company's standards-based technology enables the first seamless delivery of enhanced TV, Internet access, Internet-based video-on-demand, and integration of client and server software via end-to-end OpenCable to DVB-compliant digital TV platform

Pioneer: Burbank, Calif.-based Pioneer Digital Technologies, Inc. is a joint venture between Long Beach, Calif.-based Pioneer New Media Technologies Inc. and parent company Pioneer Electronic Corp. Established in 1996, Pioneer Digital Technologies, Inc. represents a significant event in Pioneer's vision to move product development closer to the market.

Zenith: Zenith Electronics Corporation is a World-Class leader in consumer electronics and advanced cable systems in North America. Based in Glenview, Illinois, the company is a major supplier of network and subscriber systems for cable, TV and telecommunications industries. Zenith also was the primary developer of the U.S. transmission standard (ATSC) for digital high-definition television (HDTV).

--30--ari/sf* slt

CONTACT:

C-Cube

Melissa Malley, 408/490-8510,

melissa.malley@c-cube.com
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