Digital TV Portal Software Developed by NDS and China Int'l TV Corp. Passes CCTV Evaluation

Business Wire, Dec 20, 2000

Business Editors/High Tech Writers

BEIJING, China--(BUSINESS WIRE)--December 20, 2000

NDS Group plc (NASDAQ/EASDAQ: NNDS), a News Corporation (NYSE: NWS, NSW.A) company and the leading provider of conditional access systems and interactive applications for digital pay TV, announced today that their latest innovative Chinese-language TV portal system passed a critical evaluation and was approved by the expert committee organized by the CCTV Technology Management Office.

The digital TV portal software was jointly developed by NDS and China International TV Corporation (CITC), and it is comprised of a Chinese-language interactive program guide and integrated receiver decoder application software. It is the first and only system of its kind to pass the acceptance test of the CCTV Technology Management Office to date.

With the digital TV portal interactive software, television viewers are able to enjoy the privilege of an on-screen electronic programming guide (EPG) and added convenience with the simplified Chinese-language interface. EPGs are interactive programming guides that lead viewers through the many channels on their service, and enable them to quickly check program schedules and what is on air. The integrated receiver decoder (IRD) software is the key that links the services transmitted by the broadcaster to the viewers' screens.

Mr. Ren Xiaoyan, Chief Representative of NDS Asia Pacific Ltd. (China) Office, says, "I would like to express our gratitude towards China International TV Corporation for their great support in the co-development of the software that took over one year to complete. Without the joint efforts of both parties, the digital TV portal software would not have been able to pass CCTV's rigorous evaluation." He added, "We are very pleased that we were successful and view this achievement as an exciting milestone in the co-operation between NDS and CCTV. NDS looks forward to developing new services for Chinese viewers to deliver high quality digital TV and interactive programs in China."

The CCTV Technology Management Office invited more than ten well-known broadcast and TV technology experts to conduct the evaluation. According to the expert committee, the software meets the full range of CCTV's needs for a digital TV interactive electronic program guide and integrated receiver decoder application software. In particular, the software meets the requirements of the Chinese national broadcaster because of its sophisticated design elements, comprehensive functions and simplified Chinese interface.

In China, NDS has undertaken the process of localizing all of their core products and services for the China market. In 2000, NDS opened a research and development center in Beijing to expedite this goal and conduct co-development projects with selected Chinese partners. In May 2000, NDS was selected by China's Information Network Center to supply the NDS digital cable TV headend systems, conditional access, set-top box operating systems and an interactive program guide for the country's exclusive national cable television network. The Academy of Broadcasting Science and NDS have co-developed a Chinese conditional access system. NDS is continuing to develop leading technology with Chinese set-top box manufacturers.

The NDS R&D Center in Beijing is developing several Chinese-language interactive services. The NDS developments in interactive TV will empower Chinese consumers with more flexibility and choice for receiving the digital entertainment, information and consumer services they want, when they want them.

About NDS

NDS Group plc is a leading supplier of open conditional access software and interactive systems for the secure delivery of entertainment and information to televisions, set-top boxes and personal computers. The company also develops secure datacasting solutions for the distribution of data and multimedia. See www.nds.com for more information.

Cautionary Statement Concerning Forward-Looking Statements The statements contained in this release which are not historical facts may constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to the plans, projections or future performance of NDS, which involve certain risks and uncertainties, including risk of market acceptance, the effect of economic conditions, possible regulatory changes, technological developments, the impact of competitive pricing and the ability of NDS and its commercial partners to develop systems and solutions which meet the needs of the broadcasting industry in a timely and cost-efficient manner, as well as certain other risks and uncertainties which are detailed in NDS's filings with the SEC. Company or product names have been used for identification purposes only and may be the trademarks or registered trademarks of their respective companies.