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To: Hank 191 who wrote (6367)	1/7/1999 4:55:00 PM
From: Pikeaholic	Read Replies (2) \| Respond to of 21143

ATLANTA, Jan. 7 /PRNewswire/ -- Scientific-Atlanta, Inc. (NYSE: SFA - news) and Time Warner Cable announced today the two companies have reached a milestone in their relationship to bring digital interactive television services to cable subscribers. Time Warner Cable has acquired 100,000 Explorer® 2000 set-tops in preparation for its launch in the Austin, Texas market and in multiple other systems in early 1999. Additionally, Time Warner Cable has purchased more than 30 digital network systems from Scientific-Atlanta. ''We're very pleased to take this important step towards our national rollout of an open-standards based, real-time digital network,'' said Jim Chiddix, chief technical officer of Time Warner Cable. ''The network developed by Scientific-Atlanta allows a broad range of potential applications that will enable us to offer our customers exciting new services that we think will transform not only their viewing experience, but also our potential to create new revenue streams to support our business.'' As previously announced, Time Warner is committed to purchasing 1.1 million Explorer 2000 set-tops, with an option for 500,000 additional units. Time Warner Cable serves a total of 12 million subscribers in 37 states. According to Chiddix, Time Warner Cable plans to introduce a wide variety of digital services in stages on its interactive digital systems. Digital broadcast television service will be introduced first, followed by interactive services such as video-on-demand, in which consumers gain immediate access to a host of movies and can use rewind, fast forward and pause features to control the video. ''Time Warner Cable and Scientific-Atlanta have long collaborated on developing the key components of a two-way, digital broadband network. This purchase reflects Time Warner's commitment to the Pegasus vision and Scientific-Atlanta's ability to deliver on that vision,'' said Jim McDonald, president and CEO of Scientific-Atlanta. Together, Scientific-Atlanta and Time Warner Cable pioneered interactive digital services with the Pegasus program, a project that began in 1996. Scientific-Atlanta is the primary network integrator and supplier of network equipment and digital set-tops for Time Warner Cable's Pegasus program, which is designed to bring next-generation digital video, audio and data services to cable customers. Background: Pegasus Program The Pegasus program is Time Warner Cable's strategy for deploying a cost- effective technology based on open standards that will make interactive digital services a reality for its customers. Pegasus, the forerunner of many specifications now being formalized by the OpenCable initiative, culminated from several years of experience creating and operating the Orlando Full Service Network (FSN). Scientific-Atlanta was a key supplier in the FSN project, providing digital set-tops and key headend components of the digital delivery system. Time Warner Cable's experience with FSN confirmed that video- on-demand and other interactive digital services have strong customer appeal. Scientific-Atlanta's interactive digital network is based on an open architecture that allows for an infinite number of applications and services to be added to the network without changes in network infrastructure. The Explorer 2000 is capable of supporting applications like Internet access and email at broadband speeds, with no waiting required to dial up or connect. E- commerce and in-home networking applications would allow subscribers to use their set-tops to save time and money. Content channels provide subscribers with information about community events, government meetings, school activities, etc. Scientific-Atlanta has received purchase orders or commitments for its interactive digital network from 14 cable operators in the United States and Canada, representing more than 75 systems which have more than 16 million cable subscribers. These cable operators include Time Warner Cable, TCI, Cox, Comcast, Adelphia, Marcus Cable, Rogers and Videotron.