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To: J Fieb who wrote (34915)	8/4/1998 8:32:00 AM
From: John Rieman	Read Replies (3) \| Respond to of 50808

Divi installs MMDS in Canada....................................... DiviCom Selected by Look Communications for Canadian Digital Wireless Television Service; Service Targeted to Cover Over 50% of Canadian Homes Business Wire - August 04, 1998 08:25 Jump to first matched term MILPITAS, Calif.--(BUSINESS WIRE)--Aug. 4, 1998--DiviCom Inc. (NASDAQ:CUBE), a leading provider of digital video networking solutions, today announced that Look Communications of Canada has selected DiviCom compression systems for its new digital wireless television service, Look TV, which is launching today. Look TV programming will offer viewers 90 high-quality digital channels including basic cable, several Canadian specialty channels such as The Comedy Network and Space, impulse pay-per-view, and 30 CD-quality audio channels. Consumers will have the opportunity to choose among the premium channels they want to watch and pay only for those, rather than being restricted to set packages. Look's state-of-the-art digital transmission center in Milton, Ontario is built around DiviCom's compact MediaView(TM) MV10 video encoders, which compress the video signals for maximum transmission efficiency. In addition to supplying hardware, DiviCom served as the prime system integrator for the center. Look TV's operation receives its incoming feeds from fiber link, off-air antennas located in a dish farm just outside its main entrance. Incoming signals are routed through the plant, allowing Look to perform simultaneous program substitution as required. The signal is encrypted to an MPEG-2/DVB signal and sent off to Look's transmission towers via fiber optic cable or traditional microwave links. "We believe there is a window of opportunity to enter the digital television service," said Scott Colbran, President and CEO of Look Communications Inc. "So, Look chose DiviCom encoders because they have a reputation for delivering exceptional quality and integrating its products with those of other vendors quickly. This helped us gain a foothold in the market." "DiviCom and Look developed an excellent relationship which began in September 1996, during Look's initial planning phase," said Tom Lookabaugh, president of DiviCom. "They looked to us for guidance when they were deciding whether to launch their business. DiviCom assisted them in their proposal to the Canadian Radio and Television Committee (CRTC) and have stayed in close contact since." Look has stated that its signal has the potential to reach 3.2 million homes in Southern Ontario when service launches. Look has also estimated that its broadcasting has the potential to reach six million homes -- over 50% of Canada by the end of 1998. With MMDS (Multi-channel, Multi-point Distribution System), Look TV will eventually be able to offer two-way high speed Internet access to customers. President Scott Colbran has stated that the company is in discussion with several potential partners to provide both business and residential service. Look Communications Inc. Look Communications Inc. is a Canadian-owned company whose shareholders include Teleglobe Media Enterprises; Covington Wireless Communications; G.T.C. Transcontinental Group; Groupe QuebecTel; Bourgie Capital; Novanet Communications; Baton Broadcasting; and Microtec Enterprises. DiviCom Inc. DiviCom develops and integrates products and systems that make digital video networking possible. Products include audio/video encoding, data broadcast solutions, network management systems, consulting and integration services. Based on the MPEG-2, DVB and ATSC international standards, DiviCom's products enable digital video broadcasting over a variety of networks including satellite, wireless, fiber and cable. DiviCom is a wholly-owned subsidiary of C-Cube Microsystems Inc. (NASDAQ:CUBE), and both companies are based in Milpitas, Calif. C-Cube is the leading provider of digital video silicon solutions for the communications, consumer electronics and computer markets. DiviCom can be reached by phone at +1/408/944-6700 or on the World Wide Web at divi.com. CONTACT: DiviCom Inc., Milpitas Anne Hohenberger, +1-408/490-6688 anneh@divi.com

To: J Fieb who wrote (34915)	8/5/1998 5:19:00 PM
From: John Rieman	Respond to of 50808

Divicom has a lot of work to do down-under..................... afr.com.au Digital TV's big picture: a $30bn conversion cost By Finola Burke and Grant Butler Australia faces a $30 billion conversion cost for digital television over the next 10 years, with householders bearing the bulk of the expense, an independent market research house predicted yesterday. The ACNielsen Australia research also foreshadowed that digital TV would give Australia's free-to-air television networks an "enormous" competitive advantage over the print media and claimed that TV advertising revenues would double to $5 billion a year over the next decade. Australian households could expect to pay about $3,500 for a digital television set by the time the technology is introduced in 2001, ACNielsen's managing director in charge of media services, Mr Ian Garland, said yesterday. The major commercial television networks face a $500 million to $800 million direct cost of converting to the new digital technology. However, Mr Garland told a seminar in Sydney that every household would need to eventually buy some sort of device to view high-definition TV, increasing the overall cost of the change to more than $30 billion. Digital TV presented an "enormously powerful opportunity" for broadcasters, both because of the ability to split digital bandwidth into multiple channels and the potential to expand the traditional advertising format beyond sound and pictures to more detailed product information. "There is an opportunity here that would be a real threat to print media," Mr Garland said, adding that the TV networks would eventually be able to customise digital advertising. He predicted that, even though the same TV show may be watched by two adjoining households, one household would be able to receive advertising on pet care products while its neighbour could watch insurance advertisements. However, ACNielsen's predictions were met with some scepticism by the TV industry. The Ten Network's general manager of network operations, Mr Gerry Thorley, pointed out last night that the TV networks were restricted from multi-channelling until 2005 and that, even then, he thought it unlikely that they would resort to splitting the signal for target advertising. "When you split up the signal into six channels or four channels you can't send the signal in high definition format . . . and that is a fundamental shift away from what many advertisers want to do," Mr Thorley said. more................. afr.com.au