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To: Sultan who wrote (1245)11/25/1999 7:19:00 PM
From: J Fieb  Read Replies (1) | Respond to of 2347
 
Sultan K., There is also this..............So both TERN and CMTO are
in this system?

Terayon's CherryPicker Digital Video
System Deployed by Videotron,
Leading Canadian Cable Television
Operator

Videotron Adds Channels and Customizes Programming with CherryPicker

SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 15, 1999--Videotron, one of Canada's top
three cable television operators and one of the top 10 in North America, is deploying the
CherryPicker(TM) digital video management system from Terayon Communication Systems, Inc.
(Nasdaq:TERN - news) in the headend of its Montreal cable network.

CherryPicker allows Videotron, which has systems passing more than 2.36 million homes in the
predominantly French-speaking province of Quebec, to customize programming for its subscribers
and to increase the number of channels it offers to subscribers outside of Montreal.

Before deploying CherryPicker, Videotron offered more channels to its subscribers within Montreal
-- who are served by a portion of the network that operates at 750 MHz -- than subscribers who
live outside the city and are on a 480 MHz system. In order to provide its subscribers all the same
channels, Videotron is using CherryPicker to compress its digital channels to fit within 480 MHz.

This approach has allowed Videotron to avoid the time and expense of a complete network upgrade
with just the installation of CherryPicker in its headend.

Videotron is also using CherryPicker to provide its subscribers with a broader range of
French-language programming, by ''grooming'' a customized channel line-up assembled using video
content from a variety of sources, including satellite transmission, terrestrial broadcast and video
servers. CherryPicker's grooming capability is particularly important in areas like Quebec, in which
multiple languages are spoken.

''We have found that Terayon's technology is best suited to meet our immediate needs,'' said Alain
Boissonnault, director of Hybrid Fiber Coax (HFC) Networks for Videotron, Ltee. ''Because of
French programming needs and the market we're in, we need to pick and play with incoming video
streams to choose programming that suits our audience. The CherryPicker allows us to do this.''

''We are pleased to be working with such a leading cable operator as Videotron to significantly
advance their digital video capabilities,'' said Zaki Rakib, CEO of Terayon. ''Videotron has a well
deserved reputation for technical innovation and their selection of CherryPicker highlights the
system's unprecedented capabilities.''

''We receive a variety of programming from the Digicipher satellite system that does not fit our
audience demographics,'' said Kevin Cuffling, senior engineer of HFC Networks for Videotron.
''The CherryPicker gives us the ability to mix any incoming video stream with any audio we deem fit
while optimizing the resolution of each individual channel.''

Videotron joins Adelphia, Chambers, Charter, Cogeco, Cox, Time Warner and Suburban as MSOs
that have successfully deployed the CherryPicker. Terayon acquired Imedia Corp., the developer of
CherryPicker, in September 1999 to complement its proven cable modem systems with the
industry's leading digital video management system.

Terayon's CherryPicker digital video statistical re-multiplexer enables cable, terrestrial and satellite
operators to unbundle compressed program streams from satellite and other sources to create a new
customized multiplex while maintaining picture quality. With CherryPicker, operators can deliver
customized programming, while closely managing video-on-demand services, local programming/ad
insertion, Internet and program data insertion.

System features include static grooming and transcoding of digital programming, dynamic grooming,
local program/ad insertion and data injection. CherryPicker is completely interoperable with
products from other leading headend equipment manufacturers.

Terayon Communication Systems provides cable television operators with broadband
communication systems for delivering advanced data, video and telephony services. The company's
cable modem systems, advanced digital video systems and broadband telephony systems are
deployed by leading cable operators worldwide.

Terayon, based in Santa Clara, has sales and support offices worldwide, and is traded on the
Nasdaq under the symbol TERN. Terayon can be found on the web at www.terayon.com.

''Safe Harbor'' Statements under the Private Securities Litigation Reform Act of 1995: Except for
the historical information contained herein, this news release contains forward-looking statements,
estimates, and assumptions by the Company and other parties that involve risks and uncertainties,
including the Company's ability to gain new business, the expansion of operations by the Company's
customers and the deployment of the Company's products in specific markets, as well as the other
risks detailed from time to time in the Company's filings with the SEC.

Note to Editors: Terayon, the Terayon logo, TeraPro, TeraLink, and TeraComm are registered
trademarks of Terayon Communication Systems, Inc. TeraView and CherryPicker are trademarks
of Terayon Communication Systems, Inc. All other trademarks are property of their respective
owners.