DiviCom's 2000th MPEG-2 Encoder Drives Telefonica DTH Satellite Network; Customers Bank on DiviCom's Track Record as MPEG-2 Leader

Business Wire, Sept 15, 1997

AMSTERDAM, The Netherlands--(BUSINESS WIRE)--Sept. 15, 1997--IBC '97--DiviCom Inc. (Nasdaq: CUBE), a world leader in MPEG-2 broadcast video and networking solutions, announced today that it has successfully delivered its 2000th MPEG-2/DVB encoder, a MediaView MV25, to Spanish telecoms and satellite Direct-To-Home operator Telefonica.

All DiviCom digital video encoding systems are based on parent company C-Cube Microsystems' silicon solutions and comply with the MPEG-2, DVB and ATSC standards. DiviCom's worldwide encoding customers include industry leaders such as EchoStar, Optus Communications, ExpressVu, Space TV, and Bell Atlantic.

DiviCom was the first company to ship a fully-integrated MPEG-2/DVB compliant encoder in 1994, the MediaView MV20. Since then, the company has introduced the MediaView MV10, the industry's most compact (1 rack unit) and cost-effective MPEG-2 broadcast encoder, and the MediaView MV25, offering improved compression efficiency and overall picture quality.

"We applaud DiviCom's landmark 2000th MPEG-2 encoder shipment," said Javier Izquierdo Martin, TV projects manager at Telefonica. "DiviCom has done an outstanding job of providing high-quality, standards-based products and unparalleled customer service to complement its offerings." Through its system integration and consulting group, DiviCom provided a turnkey system to Telefonica in only two months. After installation, integration, on-site training and assurance testing, commercial services were launched earlier this month. Programming for the system includes real-time encoding, digital turnaround with sites in Mexico and the United States, NVOD streams, and radio channels.

"DiviCom's 2000th encoder shipment affirms our customers' faith in our MPEG-2 family of products," said Tom Lookabaugh, senior vice president and general manager of DiviCom. "DiviCom has clearly emerged as a key player in the worldwide digital television market, providing solutions across many types of networks and services."

DiviCom Inc.

DiviCom develops and integrates products and systems that make digital video networking possible. Products include audio/video encoding and decoding systems, and integration consulting and implementation services. Based on the MPEG-2, DVB and ATM 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 convergence markets.

DiviCom can be reached by phone at 1-408-944-6700, by fax at 1-408-944-6705, or via the World Wide Web at http://www.divi.com .

CONTACT: DiviCom Inc.

Anne Hohenberger, 408/490-6688

anneh@divi.com