Matav Establishes Digital Network to Enable Advanced Cable Broadcasts
NETANYA, Israel--(BUSINESS WIRE)--Dec. 14, 1998--
-- $11M Investment will Enable Near-Video-On-Demand
and Other Services-
-- Matav Has Asked Authorities to Explain Denial of
Tiering Permits --
Matav-Cable Systems Media Ltd. (NASDAQ: MATVY) today announced that it will purchase an advanced digital network from NDS Ltd. of London ("NDS") and digital converters from Samsung Electro Mechanics Co. of Korea ("Samsung") the total value of the purchase is approximately $11 million. Subject to regulatory approvals, the Digital System will enable the Company to provide its subscribers with hundreds of broadcast channels and additional new services, including, among others:
-- differentiated subscriber channel packages (basic service and
premium service packages - "tiering") -- the ability to personalize movie viewing times (Near Video On
Demand).
The project is part of Matav's technological preparation for competition in the field of Multi-Channel television broadcasting to subscribers. The Company expects to complete the installation of the digital network during the second half of 1999.
As part of the agreement, NDS will supply Matav with a total digital broadcast infrastructure, including a new digital head-end, and will integrate it with Matav's current cable infrastructure.
In addition, Samsung, through its Israeli representative, TMCS (a subsidiary of Tadiran Telecommunications), will supply Matav with an initial inventory of converters (also called set-top boxes, or Digital Home Terminals). These converters will be distributed, over time, to subscribers who request the additional services. The total cost to the Company of each digital converter will be about $360 each.
Commenting on these developments, Amit Levin, Acting CEO of MATAV, said, "This digital network is the most advanced of its class in the world. We believe that the new services which it will enable us to offer our subscribers will help make us the leading cable TV supplier in our market.
"This significant project is just one of the investments in programming, technology, and marketing which we are planning to strengthen our competitive position. We believe that our substantial competitive strengths, including our large installed subscriber base, will enable us to maintain our competitive edge in the Israeli telecommunications marketplace as it continues to open up."
Separately, on December 13, 1998, the Company, together with another cable television company, formally requested the Israeli Supreme Court to order Israel's Ministry of Communications and Council of Cable and Satellite Broadcasting to explain its reasons for not granting tiering permits.
Matav is a leading operator and provider of broadband Cable TV services in Israel. As one of three groups of CATV operators in Israel, the Company operates in exclusive franchise areas which cover approximately 25% of Israel's households. The Company provides CATV services to about 25% of all CATV subscribers in Israel.
The statements contained in this release which are not historical facts contain forward-looking information with respect to plans, projections, or future performance of the Company, the occurrence of which involve certain risks and uncertainties, including risk of market acceptance, the effect of economic conditions, possible regulatory changes, and/or technological developments, and the impact of competitive pricing, as well as certain other risks and uncertainties which are detailed in the Company's filings with the Security and Exchange Commission.
CONTACT:
Lippert/Heilshorn & Associates Inc.
Jody Burfening, 212/838-3777 ext. 106
jody@lhai.com
or
Matav-Cable Systems Media Ltd.
Shalom Bronstein 972 9 8602 229
Alma Weich 972 9 860 2266
or Fax: 972 9 8602 286
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