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To: Maya who wrote (36806)	10/20/1998 7:22:00 PM
From: John Rieman	Respond to of 50808

China's new DTH service won't be News Corp. It's "New Guys". They need some encoding/decoding help................................. skyreport.com News Corp. Out in China? The battle over digital direct-to-home service for mainland China appears to be over with South African pay-TV company, MIH, walking off with the 300 million TV household access prize. Intensive wooing by both MIH and Rupert Murdoch's News Corp. had led to speculation that both companies would get a piece of the DTH action. However, recent reports suggest that MIH beat its rival via a deal involving a system give-away including 11 encoders and at least 10,000 IRDs in return for a small percentage of revenue. The still-unnamed DTH service reportedly will offer eight programming channels plus an electronic program guide. ****************************************************** Who's MIH? They used to have something to do with Canal Plus................................ mih.co.za INTRODUCTION The results for the year under review reflect for the first time the restructured MIH Holdings Limited (MIHH) group following the completion of the Canal Plus transaction in April 1997, in terms of which Canal Plus, Richemont and MIH Limited (MIH) agreed to merge certain NetHold operations in Europe with Canal Plus, while MIH took control of the African, Mediterranean and Middle Eastern pay-television businesses. In the course of the current year, MIH sold its passive shareholding in Canal Plus in favour of investing in new business opportunities. Following the completion of a R350 million rights offer, shareholders of MIHH approved a proposal in terms of which the group's Internet businesses in South Africa were unbundled into a listed company, M-Web Holdings Limited (M-Web). This was effected by the distribution of M-Web shares to MIHH shareholders. RESULTS Given the changes within the group over the period, the results to 31 March 1998 are not comparable to those previously reported, nor can they be taken as indicative of future trends. The comparative figures include the proportionately consolidated results of NetHold and the effect of the Canal Plus transaction in the previous year. During the current financial year the small remainder of the Canal Plus shares were disposed of, realising a surplus of R13 million. The results also reflect a capital surplus on the unbundling of the M-Web business of R104 million, and an in specie dividend of R306 million, resulting from the distribution of M-Web shares to MIHH shareholders. Revenues for the year amounted to R2,6 billion, which represents an increase of 61% on the previous year. An operating loss of R73 million and a headline loss of R62 million were incurred. Group results include the proportionately consolidated results of OpenTV Inc. and the acquisition of the remaining 51% in Irdeto BV. PROSPECTS AND DEVELOPMENTS The aggregate subscriber base serviced by the pay-television operations of the MIHH group increased to approximately 1,8 million subscribing households. The past year saw continued growth in the subscriber base of the MIHH subsidiary MultiChoice Africa (Proprietary) Limited (MCA), with the aggregate number of subscribing households in its markets across the African continent now exceeding 1,2 million homes. The operations in Greece and Cyprus enjoyed strong growth and reached 280 000 subscribing households. It is intended to launch a digital service in Greece later this year. Following the merger of the group's operations in Thailand with that of a competitor, the merged company has some 300 000 subscribers. The success achieved in Thailand proves that growth opportunities do exist in Asia despite the economic downturn. The international pay-television industry continues to undergo fundamental changes as analogue operations mature in First Wold countries and growth opportunities open up in other parts of the world. Analogue services are increasingly migrating to digital platforms. A new industry is evolving as digital compression makes new consumer services possible, particularly value-added, interactive services. Operating systems are becoming more complex and more important to pay-television operators, as digitalisation brings an increase in the channels offered and in their interactive components. MIHH will follow a three-pronged strategy aimed at: developing existing markets by growing its digital and analogue businesses developing pay-television as well as Internet opportunities in Asia expanding its technology division by utilising the current base of intellectual property rights, products, experience and services in this field. Government is busy with a policy process that will lead to new broadcasting legislation in South Africa in the course of 1998. MIHH supports the view that heavy-handed regulations and obligations will not achieve the social and economic objectives outlined by government. Over-regulating local industry players, who are small in comparison to their international competitors, will undermine the ability of businesses like MIHH to compete internationally and export its products and services. We welcome the increasing trend towards competition and liberalisation and are hopeful that this trend will be reinforced in the new legislation. On behalf of the board Ton Vosloo Cobus Stofberg Chairman Managing director 15 June 1998 Directors Transfer secretaries T Vosloo (chairman) Mercantile Registrars Limited D D B Band, J P Bekker, V G Bray 94 President Street J M Buitendag, I Charnley, J S Craib Johannesburg A S Nkonyeni, S J Z Pacak, A M Rosenzweig 2001 K B Sibiya, J D T Stofberg (managing). (PO Box 1053, Johannesburg 2000) Registered office 251 Oak Avenue Alternate directors Randburg P G Greyling, J R D Modise, L R Penfold 2194 N T Ratshidi, C J Sidego. (PO Box 1502, Randburg 2125)