Cox Communications Brings First Local Advertising to High-Definition Programming

Business Wire, June 7, 2004

Business Editors/High-Tech Writers

CAB Cable Sales Management Conference and Cable AdExpo

ATLANTA & MAYNARD, Mass.--(BUSINESS WIRE)--June 7, 2004

Cox's Collaboration with SeaChange Joins HD Line-Up With

Advertising Business in New England

Achieving a cable industry first, Cox Communications, Inc. (NYSE: COX) has begun inserting local advertisements into High-Definition (HD) programming. This first step into local HD ad insertion is in Cox's Rhode Island market with ESPN HD programming.

"Cox Media HD ad insertion will be deployed in other Cox markets as HD content and subscribers continue to expand," said Guy McCormick, vice president, technical operations, Cox Media. "HD consumers are a valuable target audience to our advertisers. Cox Media will continue to leverage technology to reach new viewer segments with the video products we offer."

Working in collaboration with SeaChange International (Nasdaq: SEAC), Cox achieved its HD channel digital ad insertion breakthrough in May. By seamlessly merging the new HD capabilities with existing local advertising insertion operations, Cox is extending advertisers' reach with cable's valuable audience for HD programming.

"Cable operators are capturing local HD spot opportunities without the premium pricing often associated with HD operations," said James Kelso, vice president/general manager, broadband systems, SeaChange. "SeaChange DigitalX, a simple software utility to the SeaChange Spot System, enables the local spot business to leap into HD. SeaChange is focused on extending our customers' advertising opportunities as digital cable evolves to bring greater control, quality and targeting."

"Cox and SeaChange have again carried local cable advertising forward to derive maximum value from digital programming and give advertisers even more marketing power through cable," said Jeff Siegel, vice president of affiliate advertising sales, marketing and new business ESPN. "ESPN is committed to delivering maximum value to our affiliates, and with this development in high definition ad insertion, ESPN continues to be at the forefront of the affiliate ad sales industry."

Operational View of HD Insertion

Cox captured the tier using its existing SeaChange Spot digital insertion system combined with SeaChange's DigitalX(TM) automated ad transcoder software to insert 720p and 1080i ads into 720/1080i HD streams. With this platform, ads produced for Standard Definition television can be repurposed for seamless HD insertion on-the-fly. This provides a jumpstart for Cox's advertising clients looking for HD placements by mitigating requirements for ads to be originally produced for HD, and minimizing content storage requirements. The entire approach is transparent to existing settop boxes.

Cox, which expanded its SeaChange-based local cable ad insertion operations to include digital channel insertion in 2003, will extend HD ad insertion to additional markets this year as the company gains HD subscriber penetration, and as additional insertable programming is provided. Cox operations take advantage of digital insertion standards developed by Society of Cable Telecommunications Engineers' Digital Video Subcommittee. The ability to ensure each spot's video and audio quality, while protecting the integrity of digital and HD network signals, was proven in demonstrations for CableLabs in 2003.

About Cox Communications

Cox Communications (NYSE: COX), a Fortune 500 company, is a multi-service broadband communications company with approximately 6.7 million total customers, including 6.4 million basic cable subscribers. The nation's third-largest cable television provider, Cox offers both analog cable television under the Cox Cable brand as well as advanced digital video service under the Cox Digital Cable brand. Cox provides an array of other communications and entertainment services, including local and long distance telephone under the Cox Digital Telephone brand; high-speed Internet access under the Cox High Speed Internet brand; and commercial voice and data services via Cox Business Services. Local cable advertising, promotional opportunities and production services are sold under the Cox Media brand. Cox is an investor in programming networks including Discovery Channel. More information about Cox Communications can be accessed on the Internet at www.cox.com.

About SeaChange

SeaChange demonstrates DigitalX and a host of other digital advertising advancements, including VOD ad placement, at CAB Cable Sales Management Conference and Cable AdExpo, June 6-8 in Chicago (booth 810).

SeaChange 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.schange.com.