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Technology Stocks : C-Cube
CUBE 37.26-0.3%10:40 AM EST

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To: DiViT who wrote (39433)3/25/1999 2:23:00 PM
From: Don Dorsey  Read Replies (3) of 50808
 
C-Cube Delivers Set-Top Silicon for U.S. Cable; Philips Selects C-Cube for
Two-Way Cable Deployment in its First Generation of Set-Top Boxes


Business Editors & High-tech Writers

MILPITAS, Calif.--(BUSINESS WIRE)--March 25, 1999--Digital video
pioneer C-Cube Microsystems (Nasdaq: CUBE) today announced that its
technology has been selected to enable two way cable deployment of the
first open-architecture two-way digital set-top boxes in the U.S.
The set-top boxes, which deliver digital video to standard
television sets, will be built by Philips (NYSE: PHG) as part of a
groundbreaking cable installation by MediaOne(R), third largest cable
operator in the U.S.
Philips selected C-Cube's AViA@TV digital video system-on-silicon
to enable two way communication via cable, so customers can access
both advanced interactive services, entertainment and information on
the MediaOne network.
"Two-way interactivity over HFC (Hybrid Fiber/Coax) networks is
critical for the MediaOne deployment," said Jos Swillens, General
Manager of Philips Digital Receivers. "With C-Cube's technology inside
the box, we are able to meet the aggressive schedule and feature
requirements of this landmark initiative. We are delighted that
MediaOne has chosen Philips and our group partner, to deliver the
first open system to the U.S. cable market. Philips is a leading
consumer electronics company with a strong brand and long-term
commitment to open digital technology."
The set-top boxes will be linked to cable head-end equipment
built by DiviCom Corporation, a C-Cube subsidiary. DiviCom has been
selected to supply its open solution digital encoding and distribution
system as well as its Intersect set-top box controllers to MediaOne.
"Selecting an OpenCable platform for our Digital NexTV service
required us to choose vendors that could provide us with the right
components for our system and meet our tight deadlines," said Joe
Wetzel, Vice President of Engineering for MediaOne. "We are relying on
the combination of Philips and C-Cube to meet our aggressive
requirements."
C-Cube, along with other open architecture partners, has
dedicated engineering resources for development and documentation of
the industry's changing OpenCable(TM) specification. As a result of
the OpenCable initiative, cable operators are no longer dependent upon
a proprietary solution or a single supplier for advanced system
components such as consumer set top boxes. By utilizing
interoperability and open standards-based systems, component providers
can deliver a wider range of new choices to cable operators who are
planning to migrate to open standards based digital cable networks.
"With the MediaOne announcement, the ground rules in the U.S.
cable market have changed," said David Baillie, vice president and
general manager of C-Cube's Consumer Network Products Business Unit.
"Cable providers are actively looking to open standards-based
solutions, which C-Cube is pleased to be able to provide them."

About AViA@TV Set-Top Solutions

Digital set-top manufacturers, such as Philips, are leveraging
the unique capabilities of the C-Cube AViA@TV platform to deliver
set-top devices that support new network-intensive services through
two-way cable. The two-way HFC networking capability, of the AViA@TV
system-on-silicon make it the preferred solution for set-tops
supporting Web surfing, and interactive electronic program guides. By
enabling set-top manufacturers to offer these advanced functions,
C-Cube is bringing a new level of entertainment value to consumers.
"The announcement of MediaOne's digital cable system - with its
robust customer features and flexible open systems architecture - is a
milestone for the U.S. cable industry," said Baille. "By adopting the
industry's newest OpenCable standards, MediaOne is paving the way for
US cable service providers to take full advantage of the competition
and innovation that is the hallmark of the digital video industry. As
a result, cable providers will be able to choose among the broadest
range of leading-edge solutions at the lowest possible costs."

About Philips

Royal Philips Electronics of the Netherlands is one of the
world's biggest electronics companies and Europe's largest, with sales
of US$33.9 billion in 1998. It is a global leader in color television
sets, lighting, electric shavers, color picture tubes for televisions
and monitors, and one-chip TV products. Its 233,700 employees in more
than 60 countries are active in the areas of lighting, consumer
electronics, domestic appliances, components, semiconductors, medical
systems, business electronics, and IT services (Origin). Philips is
quoted on the NYSE, London, Frankfurt, Amsterdam and other stock
exchanges.

About MediaOne

MediaOne, the nation's leading Broadband services company,
provides entertainment, information, and communications services to
about five million customers. MediaOne Group (NYSE: UMG) is one of the
world's largest broadband communications companies, bringing the power
of broadband and the Internet to subscribers in the United States,
Europe and Asia. The company also has interests in some of the
fastest-growing wireless communications businesses outside the U.S.
For 1998, the businesses that comprise MediaOne Group produced
$7.1 billion in proportionate revenue.

About C-Cube Microsystems

C-Cube Microsystems Inc. is the industry leader in the
development and delivery of highly integrated digital video silicon
and systems solutions. The C-Cube Semiconductor Division delivers
highly integrated digital video silicon and systems solutions for the
communications and consumer electronics markets, including digital
set-top boxes, VCD, and DVD. DiviCom, a wholly owned subsidiary of
C-Cube, is a leading provider of open solutions for digital
television. DiviCom products include audio/video encoding, data
broadcast solutions, network management systems, consulting and
integration services.
C-Cube is headquartered in Milpitas with offices in North
America, Europe, and Asia. Its stock is traded on the Nasdaq under the
symbol CUBE. C-Cube can be reached at 408/490-8000 or on the World
Wide Web at c-cube.com. DiviCom is based in Milpitas and
can be reached at 408/944-6700 or on the World Wide Web at
divi.com.
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