EnReach, NTT-ME, Rikei Corporation and Toyo Communications Supply VOD to Japanese Broadband Market

Business Wire, July 16, 2001

Business Editors/High-Tech Writers

ALVISO, Calif.--(BUSINESS WIRE)--July 16, 2001

EnReach, a global leader providing TV-centric middleware and application software for broadband IP networks, today announced their partnership with NTT-ME Corporation, a leading company in the Multimedia Engineering (ME) industry providing a total solution for infrastructure, content and technical support in Japan; Rikei Corporation, a leading broadband system integrator in Japan and Toyo Communications, a leading content supplier for video-on-demand in Japan. The partnership provides a complete technology and content solution for high-speed Internet access and video-on-demand services over Internet Protocol (IP) infrastructure for broadband markets in Japan. Japanese broadband penetration is expected to reach thirty million households by 2005.

The companies will initially target the hospitality market, and will expand to provide services to the multi-tenant unit (MTU) and broadband residential markets in the near future.

Under the terms of the partnership, NTT-ME will provide the set-top device under the brand WakWak Station BB (Broadband). The Ethernet based TV set-top box integrates both EnReach iTV middleware and application software to enable web browsing, e-mail, video-on-demand, portal for customer services and personalized account summary services. Toyo Communications will provide the movie titles for the video-on-demand service. Rikei will serve as the distributor of the EnReach middleware and application solutions for the hospitality market in Japan.

"This system solves many of challenges operators face today when they try to introduce advanced digital services over traditional infrastructure," said Takashi Nikami, Director of the Information Technology Division at Rikei Corporation. "Utilizing an IP based system infrastructure allows operators to minimize their upgrade infrastructure costs, while quickly rolling-out advanced digital services."

"NTT-ME is currently promoting the "WakWak Station Pack" that allows people to easily enjoy the Internet over TV in accordance with NTT-ME's business concept of "T-Mode" (combining the Telecommunications and Television business as a total solution to customers) in Japan," said Tomohisa Hirokawa, Executive Manager of NTT-ME. "We are very pleased with the success we have had with the EnReach TV enabled device, which is an excellent device that is meeting the needs of customers with broadband. Hotel operators will be among the first to benefit from this complete solution."

This solution means that hotel operators will simply connect their NTT-ME provided set-top device to the television in each guest room to immediately begin offering video-on-demand and high-speed Internet services. Only minimal telephone infrastructure changes will be required to support the interactive services.

"Combining the solutions of NTT-ME, Rikei, Toyo and EnReach has produced a system that hospitality operators can rely on to quickly and cost effectively offer greater services to their customers and provide new revenue streams," said Bo Wu, President and CEO for EnReach. "This is an excellent opportunity for hotel operators to leverage innovative technologies such as video-on-demand to realize the full potential of their broadband connectivity."

In a typical hotel environment the system is configured to connect the WakWak Station BB set-top box to the television in each hotel room. Existing telephone lines are utilized to provide a high-speed network connection between the set-top boxes and the video server located in the phone exchange room (PBX) within the hotel. This high-speed access enables the broadband connectivity necessary to deliver IP based video-on-demand.

"The strong alliance we have created will further prepare the market for broadband services like video-on-demand and web access through a single set-top device," said Hiroshi Nakano, Sales and Marketing Manager of Toyo Communications. "With broadband connectivity expected to exceed thirty million by 2005, this alliance represents a significant milestone in the move toward fully utilizing advanced technologies to deliver high-quality entertainment to consumers."

About NTT-ME Corporation

NTT-ME is a wholly owned subsidiary of Nippon Telephone and Telegraph (NTT) located in Japan. Over the years, the NTT Group has developed a wide range of business activities geared toward creating a better communications society, by constructing and maintaining a telecommunications network and by providing a variety of related services. Established in April of 1999, NTT-ME was created to offer customers' businesses the benefits that the Group has accumulated through these activities. True to its name, which stands for "Multimedia" and "Engineering," the keys to business in the 21st century, NTT-ME responds to the needs of the information distribution society with cutting-edge technologies and proven reliability, even in the most complex and high-level business fields. Additional information regarding NTT-ME is available at www.ntt.co.jp.