SeaChange Extends On-Demand Television to Live Network Programming; Comcast Brings Flyers Games and NBC News Programs to VOD in Philadelphia

Business Wire, Feb 10, 2003

Business Editors/High-Tech Writers

MAYNARD, Mass.--(BUSINESS WIRE)--Feb. 10, 2003

SeaChange International, Inc. (Nasdaq: SEAC) today announced that the SeaChange Recording System is now available to cable operators, enabling them to more quickly make news, sports and live events part of the video-on-demand (VOD) experience.

A simple extension of the SeaChange VOD System, the Recording System automatically captures selected broadcast programs and prepares them for on-demand viewing with fast-forward, pause and rewind functionality, giving the viewer full control of a broader variety of television programming. Comcast has deployed it in the Philadelphia area; other U.S. cable operators are also gearing-up their SeaChange VOD deployments to encode live television in real time.

"Video-on-demand embraces a vast array of programming choices - a 'personal' television experience that empowers viewers like never before," said James Kelso, vice president/general manager, broadband division, SeaChange International. "Movies-on-demand is a great business, but it is just the beginning. We're excited to work with the nation's leading broadband and cable communications provider as it paves the way towards offering more and more content on demand."

Comcast is using the SeaChange Recording System in Philadelphia, the fourth-largest U.S. television market and the first market to offer Comcast's ON DEMAND service. Hundreds of hours of on-demand content - including local sports and news captured by the Recording System - are available at the fingertips of Comcast Digital Cable customers in the Philadelphia area.

Comcast initially is recording select Philadelphia Flyers games and NBC News programming, including 'Dateline,' 'NBC Nightly News' and 'Meet The Press,' adding to the rich Comcast ON DEMAND library that already features movies, subscription VOD and free programming from leading cable networks. Comcast also delivers on-demand newscasts from WCAU-TV (NBC) shortly following the conclusion of daily live broadcasts at 6 a.m. and 6 p.m.

"Recording live programming and offering our customers up-to-the-minute news and sports when they want it allows us to provide an even greater value to our digital cable customers," said Mark Hess, vice president of digital television, Comcast. "Comcast is committed to offering our customers more and better choices for in-home entertainment, and we're pleased to work with SeaChange in bringing this exciting new way to watch television to viewers."

James Kelso continued, "Since our founding in 1993, cable operators have trusted SeaChange equipment to run billions of dollars in advertising and millions of hours of programming. They have come to expect highly automated, reliable solutions from SeaChange and our new Recording System holds true to form. We're honored to be a part of Comcast's innovative deployment."

How the SeaChange Recording System Works

The SeaChange Recording System is a 'set and forget' extension of the SeaChange VOD System. Data entry is minimized via 'point-and-click' graphical user interfaces designed through usability testing with cable television operations personnel. The software automates the entire process, from capturing video content from broadcast sources, to propagating files to servers based on anticipated subscriber demand, and importing television schedule information. Designed to mitigate the operational costs of capturing content, the Recording System intelligently allocates a small number of video encoders to record incoming content from a large number of sources, whether broadcast, cable or satellite.

The Recording System adheres to strict business rules based on contracts with television networks, allowing cable operators to predetermine the lifecycle and usage of recorded content. Comcast, for example, has programmed its system to automatically record Flyers home games. Following the live broadcast, the recorded games are propagated across the SeaChange VOD Systems with the same automation and security provided for any other VOD asset, such as a feature-length movie. Comcast makes each game available for viewing - streamed on-demand with pause, fast-forward and rewind convenience - until the next scheduled game is played and recorded. The VOD guide, running on the digital set-top box, automatically reflects the changes in the VOD line-up.

Cable Chooses SeaChange

SeaChange drives the on-demand business with highly automated and fault-resilient digital video systems. Today, SeaChange VOD Systems provide more than 363,000 on-demand streams in over 75 deployments for North America's largest cable operators including Adelphia, AOL Time Warner, Cablevision, Comcast, Insight, Mediacom and Rogers. Around the world, broadcasters and television networks are empowered by SeaChange's systems, capitalizing on digital video to streamline their operations.

About SeaChange

SeaChange International, Inc. provides digital video systems that are changing television. Its powerful server and software systems enable television operators to provide new on-demand services and to gain greater efficiencies in advertising and content delivery. With its Emmy-winning MediaCluster technology, thousands of SeaChange systems are helping broadband, broadcast and satellite television companies to streamline operations, expand services and increase revenues. SeaChange is headquartered in Maynard, Massachusetts and has product development, support and sales offices throughout the world. Visit www.seachangeinternational.com.