Divicom and partners deliver:
DiviCom, Partners Deliver on Promise of Open Cable Launch
Jacksonville Becomes Nation's First Open-System Digital Market
MILPITAS, Calif.--(BUSINESS WIRE)--Dec. 14, 1999--DiviCom© Inc., a C-Cube (Nasdaq:CUBE - news) subsidiary and the world's leading provider of open solutions for digital television, today joined MediaOne©, Canal+ and Philips to announce the launch of the nation's first open digital cable-television architecture.
The deployment in Jacksonville, Florida, by MediaOne -- one of the nation's largest broadband companies -- marks the first U.S. deployment of the open-cable platform that cable operators have long seen as vitally important to streamlining operations and improving user friendliness. This open-access architecture offers operators the flexibility to mix and match components from a variety of vendors and the means to provide customers with more innovative features, such as interactive television.
``For years, cable operators have had little choice but to use proprietary infrastructure systems for their entire operation, from head-end or transmission components to cable customers' set-top boxes,' said Tom Lookabaugh, President of DiviCom. ``MediaOne's deployment in Jacksonville clearly signals the beginning of an industry shift toward more open systems.
``But the big winners in this deployment are American consumers,' Lookabaugh said. ``With the Jacksonville deployment and the momentum for more open systems clearly building, the retail availability of a wide array of set-top boxes offering innovative features such as Internet interactivity and video-on-demand are just around the corner.'
MediaOne began signing up customers earlier this month. Cable operators using open-platform technology are also expected to reap several benefits. For example, the open-access platform promises to increase competition among suppliers of system hardware and software, enabling cable companies to better manage operating costs. For consumer electronics manufacturers, open systems are expected to clear the way for the retail sale of set-top boxes.
``We are proud to have led a team including great vendor partners -- Philips, Canal+ and DiviCom -- in introducing open digital cable platform technology in the United States,' said Jan Peters, President and CEO of MediaOne. ``Our Jacksonville launch is good news for both domestic cable operators and consumers. It marks a giant step towards greater operating efficiencies for cable companies, and choice, innovation and cost-savings for our customers.'
DiviCom supplied the complete digital head-end for MediaOne's OpenCable architecture: the encoding, multiplexing, network management and return path. In particular, those components include the MediaView encoding system, the MediaNode MN20 remultiplexing system, THESYS(TM) graphical element and network controller, and the InterSect(TM) interactive Internet Protocol (IP) gateway, a device that delivers TCP/IP data over the MPEG-2 signal to the set-top box -- the key to bringing interactivity to set-top boxes.
Digital video pioneer C-Cube Semiconductor, DiviCom's parent company, itself provided a multiple chip silicon solution as part of the MediaOne installation. C-Cube's AViA@tv(TM) set-top silicon -- the first of its kind -- enables two-way interactive digital video in consumer set-top boxes. When combined with InterSect, AViA@tv delivers digital broadcast and pay-per-view television and interactive applications such as web browsing, e-mail, stock ticker, and electronic program guides.
DiviCom has joined forces with Canal+ and Philips previously to deploy a number of similar systems in Europe. The MediaOne architecture features a customized version of the open platform Canal+ has deployed in more than five million households internationally. Philips, a global leader in digital video and consumer electronics, supplied the digital set-top boxes.
In another effort, the three companies and MediaOne continue their work as part of the OpenCAS(TM) consortium, in which more than 20 leading U.S. cable operators, equipment vendors and content suppliers are defining a universal, open interface for conditional access systems, the cable-network entry way for television programming. Designed to dovetail with open-cable platforms, OpenCAS is also expected to help speed the retail availability of set-top boxes and offer similar flexibility and cost benefits.
Open Architecture is Key
With the MediaOne deployment, DiviCom again demonstrated the power of its open-architecture, multi-vendor solution to meet cable operators' requirements, enable them to select best-of-breed components and help deliver innovative new services to customers.
About DiviCom
DiviCom Inc. is a leading provider of open solutions for digital television. Products include audio/video encoding, data broadcast solutions, network management systems, integration and support services. Based on the MPEG-2, DVB, ATSC and OpenCable international standards, DiviCom products enable digital video broadcasting over a variety of networks including satellite, wireless, fiber and cable. DiviCom Inc. is a wholly-owned subsidiary of C-Cube Microsystems Inc. (Nasdaq:CUBE - news), and both companies are based in Milpitas, Calif. DiviCom can be reached at 408/490-6700 or www.divi.com.
As announced on October 27, C-Cube Microsystems has entered into a definitive agreement to combine DiviCom with Harmonic (Nasdaq:HLIT - news), and to spin off or sell its semiconductor business in a taxable transaction prior to the closing of the transaction. The deal is expected to close in Q1 2000.
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. C-Cube's 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. C-Cube can be reached at 408/490-8000 or www.c-cube.com.
Note to Editors: DiviCom and MediaView are trademarks of DiviCom, Inc. C-Cube and the C-Cube logo are registered trademarks of C-Cube Microsystems Inc.
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Contact:
C-Cube Microsystems Inc.
Mike Hall, 408/490-8471
mike.hall@c-cube.com
Steven Horwitz, 408/490-8561 (Investor Relations)
shorwitz@c-cube.com
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