Telefonica, 3rd largest telecom in the world, chooses CORINEX 200 Mbps AV Powerline to deploy IP TV in homes; The first mass deployment of 200Mbps Powerline technology

Business Wire, August 8, 2005

VANCOUVER, British Columbia -- Telefonica, one of the largest telecoms in the world, has chosen Corinex's 200Mbps AV Powerline Ethernet adapters for use in its "Imagenio" IP TV home entertainment and communications package. Corinex's equipment will be used to connect an ADSL modem, sending IP TV signals, to a TV set top box via the existing electrical wiring.

A major obstacle for telecoms in delivering IP TV has been sending the signal from the ADSL modem to other rooms in the home. Powerline technology carries signals throughout an entire home, eliminating the connectivity problem. The new generation of powerline technology offers the speed and Quality of Service required to distribute video within the home.

Telefonica went through extensive efforts to research and evaluate all the different technology options available today and those in development. Corinex's AV Powerline product was the only viable solution enabling Telefonica to deploy the Imagenio service anywhere in the home. Neither wireless nor other powerline technologies could meet their needs.

Telefonica's Imagenio service is Europe's first offering of IP TV in homes without the large expense and customer distress over drilling holes and adding new wiring in a home.

"Corinex is currently in tests and field trials with 17 carriers worldwide for IP TV deployment. Passing Telefonica's rigourous testing procedures and field trials is a strong validation of the strength and fit of our 200Mbps Powerline and Coaxial AV product line," says Peter Sobotka, Corinex's CEO. "Corinex is proud to be chosen by Telefonica, a clear leader in offering IP TV services. Our distributor and partner Elmeg Spain, brought local support and experience that was key in achieving this deal," continues Sobotka.

Corinex chose DS2's 200Mbps chipset to power the AV Powerline product as it was the only available technology in the market for providing IP TV over powerlines. Telefonica's order marks the first mass deployment of a (pre) Universal Powerline Association standard product.

About Telefonica

Telefonica is one of the world's top telecommunications company, with a client base of over 115 million customers in a potential market of 500 million, over 80 years of experience, and operations in over 40 countries. Telefonica is the third largest telecom operator worldwide (market capitalization) and the second largest integrated operator. For more information visit www.telefonica.es.

About Corinex Communications Corp.

Corinex is the leader in UPA, HomePlug, Video, and IP telephony customer premise solutions. From delivering high speed broadband backbones on electrical wiring, coax, and phone lines, to distributing HDTV video signals, to our VideoPhone and VoIP technologies, Corinex is focused on providing unique AnyWire Connectivity(TM) solutions. Corinex has a market share of 48% in the HomePlug networking market (In-Stat/MDR). Information on Corinex can be found at www.corinex.com.