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To: John Rieman who wrote (26888)	12/18/1997 9:27:00 PM
From: stak	Respond to of 50808

shaw chips in their 2cents in digital STBs. Shaw Makes Significant Commitment to Digital Technology - Company Plans to Purchase 400,000 Digital Set-Tops CALGARY, ALBERTA--Shaw Communications announced today a significant commitment to deploy advanced digital set-tops through out its cable operations. Building on the successful launch of digital technology in its Calgary and Toronto systems, the company has committed to purchase up to 400,000 digital set-tops over the next four years from NextLevel Systems, Inc. (which will be renamed General Instrument Corporation). Today's announcement is part of a broader North American cable industry initiative to accelerate the deployment of advanced digital set-top services. The initiative involves nine leading North American MSOs (multi-system operators) who will purchase at least 15 million advanced digital set-tops over the next four years. "A purchase of this magnitude re-affirms our strong commitment to digital and our leadership position in the digital communications marketplace," said Jim Shaw, President & C.O.O. of Shaw Communications. "The success of our digital launches in Calgary and Toronto has shown us that digital technology is the future of cable," he added. "We expect these transactions with the leading cable MSOs to provide a strong foundation for our business, accelerate deployment of new consumer services, make Open Cable a reality and reinforce our market leadership position in the next generation of technology. We are deeply honoured to become partners with Shaw and so many fine companies," said Edward D. Breen, Chairman and CEO of NextLevel/General Instrument.

To: John Rieman who wrote (26888)	12/18/1997 10:34:00 PM
From: BillyG	Respond to of 50808

TCI to team with recognized consumer electronics manufacture for distribution . . . I wonder if this also means manufacturing? NextLevel's Breen said on the conference call that the boxes are being manufactred in Taiwan.

To: John Rieman who wrote (26888)	12/18/1997 10:53:00 PM
From: BillyG	Read Replies (2) \| Respond to of 50808

TCI will have a "second partner" that is a consumer electronics manufacturer (see end of article)............ zdii.com TCI to use creative financing for set-top box purchase Thursday December 18 12:38pm Peter Lambert Tele-Communications Inc. will share creative financing with as-yet unnamed strategic partners to pull together the purchase order of 6.5 million to 11.9 million interactive digital set-top boxes from NextLevel Systems Inc. TCI and eight other cable operators have agreed to buy at least 15 million of the boxes from NextLevel, which is changing its name back to General Instrument Corp. (GI). Time Warner Cable will purchase 500,000 units. The remainder of the 15 million will be split among smaller operators that are affiliates of TCI's existing Headend in the Sky (HITS) one-way digital TV broadcast service. To be delivered between 1999 and 2002 at an estimated $300 each, the Internet- and digital video-capable boxes could reap $4.5 billion for NextLevel and a soon-to-be-named consumer electronics manufacturer partner. NextLevel's stock, which surged 17.5 percent yesterday, was down almost 2 percent, to 17-3/8, in midday trading. TCI Chairman John Malone said in a press conference today TCI expects to be "probably half owner" of a separate "financing vehicle" shared with "strategic partners" to bankroll the boxes off TCI's balance sheets. "We have broad support of the Silicon Valley industry to make this happen," financially and technologically, Malone said. The creative financing also will extend to GI. As part of the box deal, the operator-buyers will gain $15-per-share warrants to purchase an aggregate 16 percent interest in GI. On news of the deal Dec. 17, NextLevel stock closed at 17-7/8, up 2-7/8 on 4.9 million shares traded. Added to another 10 percent equity trade, through which GI will take over management of TCI's HITS digital TV distribution service, TCI now has warrants for about $400 million in GI stock. TCI retains the right to approve GI's choice of a consumer electronics partner, which Malone said will gain for TCI not only a second box supplier, but a second provider of innovation as well as an entree into retail distribution. Through silicon chip integration, he said, the set-top box eventually "could find its way into a DVD [digital video disc] player or the TV set itself."