Thomson Signs CableLabs® License for Two-Way Digital Cable Products in North America; Agreement Serves to Further Underpin Thomson's Cable Growth Strategy for the U.S. Market

Business Wire, Dec 21, 2005

PARIS & LOUISVILLE, Colo. -- Thomson today announced that it has signed a license agreement with CableLabs(R), the consortium of North American cable operators, for its CableCARD(TM)-Host Interface License Agreement (CHILA) specifications and associated intellectual property.

The CableCARD Host Interface specification defines the interface between a digital cable receiver or set-top box and the CableCARD module distributed by the cable operator, thus providing a standard platform for two-way interactive devices. By signing the agreement, Thomson will be able to build products such as set-top boxes and customer premises equipment with a CableCARD(TM) removable security interface that may be sold to cable subscribers via retail channels. These products would be capable of receiving and displaying advanced cable services such as program guides and video-on-demand (VOD). CHILA is a key component of the effort initiated by North American cable operators to deploy more innovative cable devices in their market. Additional interactive services will be made possible by the deployment of OpenCable(TM) Application Platform or OCAP(TM)-compliant middleware as specified by CableLabs.

"Thomson brings to the cable industry a long history of innovative products," Dr. Richard R. Green, President and CEO of CableLabs said. "We look forward to working with Thomson to bring two-way interactive products to market expeditiously," he added.

This agreement follows on the heels of Thomson's new residential cable product line-up launched last month comprising a triple play residential gateway, a hybrid cable-IP set-top box and VoIP wireless cable modem designed to enable cable operators to seamlessly deliver voice, video, and data applications to their customers. The agreement underscores Thomson's Two-Year Plan ambitions to expand its client base and increase the range of innovative products and solutions it can offer.

"Thomson's pioneering DOCSIS(R) cable modem solutions and position as a major modem provider to North American MSOs is firmly underpinned by our leadership in digital STBs and broadband modems worldwide. We have recently established solid commercial relationships with major MSOs in Europe, Asia and Latin America, who are leveraging our STB technologies to provide their customers with the ultimate in broadband services. Embracing CHILA and OCAP is the most logical next step in our development. These specifications are one of the most important industry standards emerging for the cable industry and the licensing agreement is a major milestone in Thomson's growth strategy for the US cable market," said Frederic Kurkjian, Vice President, Worldwide Cable Business Unit within Thomson's Access Platforms & Gateways activity. "Committing to build our next generation of cable access solutions on the accepted, open standards set out in the OpenCable specifications will help us bring new and exciting products to this dynamic marketplace."

Some of the statements contained in this press release, including statements by the management in relation to future expectations, represent "forward-looking statements" in the sense of the "Safe Harbor Statement" by the U.S. Private Securities Litigation Reform Act of 1995. These types of forward-looking statements are based on current expectations and assumptions on the part of the management and are subject to a range of factors and uncertainties which may lead to a considerable deviation of the results actually achieved from the expectations outlined either explicitly or implicitly in the forward-looking statements. This may be due to changes in global economic conditions, industry developments, a shift in the competitive situation or the passing of new legislation. More detailed information on the factors which may influence Thomson's financial results can be found in the documentation submitted to the U.S. Securities and Exchange Commission.

About CableLabs

Founded in 1988 by members of the cable television industry, Cable Television Laboratories is a non-profit research and development consortium that is dedicated to pursuing new cable telecommunications technologies and to helping its cable operator members integrate those advancements into their business objectives. Cable operators from around the world are members. CableLabs maintains web sites at www.cablelabs.com; www.packetcable.com; www.cablemodem.com; www.cablenet.org; and www.opencable.com.

CableLabs(R), OpenCable(TM) and CableCARD(TM), are marks of Cable Television Laboratories, Inc. All other marks are the property of their respective owners.

About Thomson - Partner to the Media & Entertainment Industries

Thomson (Euronext Paris: 18453; NYSE: TMS) provides services, systems and equipment, and technology to help its Media & Entertainment clients - content creators, content distributors and users of its technology - realize their business goals and optimize their performance in a rapidly changing technology environment. The Group is the preferred partner to the Media & Entertainment Industries through its Technicolor, Grass Valley, RCA and Thomson brands. For more information: www.thomson.net.