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To: Stephen B. Temple who wrote (2075)12/4/1998 7:18:00 AM
From: Stephen B. Temple  Read Replies (1) | Respond to of 3178
 
3Com, C-Cube, DiviCom, MoreCom, Pioneer, and Zenith Join Forces to Showcase Digital Television, Web Access and Interactive Services; Two-Way Interactive HFC Becomes a Reality

December 4, 1998

ANAHEIM, Calif.--(BUSINESS WIRE)Highlighting the trend toward open
standards-based systems, six leading vendors of digital
television service solutions have teamed up for a
CableNET'98 demonstration at the Western Cable Show:
3Com (Nasdaq:COMS), C-Cube (Nasdaq:CUBE), DiviCom
(Nasdaq:CUBE), MoreCom, Pioneer (NYSE:PIO), and Zenith.

The "Digital Video and Internet Convergence at Work"
demonstration is the first seamless, end-to-end solution for
digital television and Internet on today's digital Hybrid/Fiber
Coax (HFC) networks. The demonstration shows cable
operators how Internet access, web casting, digital
television and other interactive applications such as home
shopping, are possible today using interoperable products
from several vendors to form an end-to-end HFC network
system.

The key beneficiaries of the demonstration will be cable
operators with upgraded two-way HFC networks and
subscribers of new digital-tier services. Each vendor
participating in the demonstration has donated a component
which is interoperable and makes use of standard Internet
and digital television content. A detailed demonstration
diagram can be found on the world wide web at
morecom.com. The
demonstration can be seen Dec 2-4 in Hall D of the Anaheim
Convention Center in the CableNET exhibit area.

Real Broadband Digital Service Solutions

This demonstration is a major milestone for the cable
industry. For the first time in over twenty years, cable
operators will not be dependent upon a proprietary solution
or a single supplier for advanced system components like
consumer set tops and head end control gear. At the show,
3Com, C-Cube, DiviCom, MoreCom, Pioneer, and Zenith are
announcing their individual products will support interoperable
standards from the head-end and outside plant down to
interactive services running in advanced digital set top
models in subscriber homes. By delivering interoperability and
open standards-based systems, these vendors provide new
choices and options for cable operators planning to migrate
to standardized two-way digital cable networks.

This trend is creating economies of scale that will help
expand the digital cable-based services market. By the end
of 1999, cable operators are expected to upgrade legacy
networks to modern two-way digital broadband cable
systems by choosing interoperable system components from
a number of manufacturers.

Six Vendors, One Powerful Solution

The exhibit displays both a core and extension model of the
current OpenCable specification and demonstrates the
interactive services that can be delivered over the
standards-based environment -- from the content supplier,
through the head-end, across varieties of networks, and into
subscribers' homes. Each vendor brings a unique area of
product and market expertise to the demonstration.

DiviCom provided the interactive set-top box controller and
the digital head-end compression and multiplexing system.
C-Cube technology and silicon power the digital set-top
boxes designed by Zenith and Pioneer. 3Com provided the
Data Over Cable Service Interface Specification (DOCSIS)
data network system and cable modems. MoreCom provided
an end-to-end software solution, which enables the
interactive application capabilities and the user interface.

At The Western Show, 3Com, C-Cube, DiviCom, MoreCom,
Pioneer, and Zenith plan to present their individual products
in addition to demonstrating how they work together.

For More Information Contact:
-- 3Com Corporation -- Rene Siegel, 925/485-5626, renes@home.com,
www.3Com.com

-- C-Cube -- Melissa Malley, 408/490-8510,
melissa.malley@c-cube.com, www.c-cube.com

-- DiviCom -- Ben Stanger, 408/490-6898, mediarelations@divi.com,
www.divi.com

-- MoreCom -- Debbie Noll, 215/773-9400, dnoll@morecom.com,
www.morecom.com

-- Pioneer -- Jim Slade, 201/236-4182, jslade@pnmt.com,
www.pioneerdigital.com

-- Zenith -- John Taylor, 847/391-8181, john.taylor@zenith.com,
www.zenith.com

More Information for Editors:

Q. How Will an Open Standards Environment Affect Cable
Operators?

A. Open Standards Will Drive Increased Cable Revenue
Opportunities

In an open standards environment, cable operators will
directly benefit from a competitive marketplace for system
gear and end terminal devices. They will be able to improve
the management of their capital investments and operational
expenses, while increasing revenues from a new business
model. With real-time, two-way networks and advanced
set-top systems, the revenue base for cable operators
expands from the current base of subscribers, programmers
and advertisers, to create a new client class of retail, utility
and digital appliance service providers.

These new clients will generate additional cable service
revenue streams from creative access and transaction
business agreements with owners of two-way bandwidth. As
the market begins to introduce 'always-on' products, the
consumer and commercial industries will offer subsidized
systems and services and add still more new business
opportunities to the bottom line. This breakthrough will not
only reduce the costs of deployment but will apply a
well-known business model to introduce emerging
e-commerce, retail and utility service appliances to a huge
audience potentially covering many serving areas
simultaneously.

Q. Is the Timing Right for Interoperable Solutions?

A. Yes, Both Cable Operators and Subscribers are Ready

Until recently, subscriber access to programs and other
services was limited to simple electronic programming guides
(EPGs) and pay-per-view movie purchases. However, with
Internet content now abundant, and set-top boxes designed
to be powerful application processors, cable operators can
plan to introduce a growing variety of multi-tiered
information and entertainment services.

Two-way digital cable systems designed to support
standards such as DVB and DAVIC build a solid and mature
infrastructure that will expand capacity, increase security
and diversify service options for two-way HFC networks. To
add to the excitement, platform-independent applications,
written in standard languages such as Java and HTML, will
support a common look and feel for Web content

Q. Why is this so important?

A. It's Not Just TV Anymore

Open standards-based systems, like the one highlighted in
this demonstration, provide a means for cable operators to
differentiate themselves from Direct Broadcast Satellite
(DBS) providers by offering a flexible, robust and powerful
service platform. These new interoperable systems are
delivering quality that digital video and audio entertainment
can provide, and they offer the consumer enhanced access
to friendly 'always-on' push/pull information products.

Savvy cable subscribers will be able to take advantage of
these new capabilities to improve their lifestyles with
convenient access to information and information providers.
Subscribers can also expect advanced digital cable services
to help increase their work-at-home productivity and to
provide customized services for the wired family.

About The Vendors

3Com: With more than 200 million customers worldwide,
3Com Corporation connects more people in more ways to
information than any other networking company. 3Com
delivers innovative information access products and network
system solutions to large, medium and small enterprises;
carriers and network service providers; PC OEMs; and
consumers. 3Com -- More connected(tm). For further
information, visit 3Com's World Wide Web site at
www.3com.com or the press site at
www.3com.com/pressbox.

C-Cube: C-Cube Microsystems Inc. is the industry-leader in
the development and delivery of highly integrated digital
video silicon solutions that address the consumer electronics,
communications and convergence markets. C-Cube is
headquartered in Milpitas, California with offices in North
America, Europe and Asia. Its stock is traded on the Nasdaq
under the symbol CUBE.

DiviCom: DiviCom Inc. develops and integrates products that
make digital video networking possible. Products include
audio/video encoding, interactive set-top controllers, data
broadcast solutions, network management systems,
consulting and integration services. Based on the MPEG-2,
DVB and ATSC international standards, DiviCom 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.

MoreCom: MoreCom Inc. is a privately held company founded
in 1997 by television pioneers from General Instruments and
Philips Electronics. Led by Ami Miron, MoreCom offers cable
operators a complete end-to-end software solution for
merging entertainment quality digital video with high-speed
Internet via television. The company's standards-based
technology enables the first seamless delivery of enhanced
TV, Internet access, Internet-based video-on-demand, and
integration of client and server software via end-to-end
OpenCable to DVB-compliant digital TV platform

Pioneer: Burbank, Calif.-based Pioneer Digital Technologies,
Inc. is a joint venture between Long Beach, Calif.-based
Pioneer New Media Technologies Inc. and parent company
Pioneer Electronic Corp. Established in 1996, Pioneer Digital
Technologies, Inc. represents a significant event in Pioneer's
vision to move product development closer to the market.

Zenith: Zenith Electronics Corporation is a World-Class leader
in consumer electronics and advanced cable systems in
North America. Based in Glenview, Illinois, the company is a
major supplier of network and subscriber systems for cable,
TV and telecommunications industries. Zenith also was the
primary developer of the U.S. transmission standard (ATSC)
for digital high-definition television (HDTV).

CONTACT: C-Cube | Melissa Malley, 408/490-8510, |
melissa.malley@c-cube.com