First PVR Set-Top Box For New Zealand; SKY Chooses Pace Micro Technology as Partner for PVR Launch

Business Wire, June 14, 2005

SINGAPORE -- Pace Micro Technology (LSE:PIC), the leading dedicated innovator of technology solutions for the payTV industry, has recently signed an agreement with SKY Network Television Ltd (SKY) to supply set-top boxes for New Zealand's first personal video recorder (PVR) service.

This agreement will deliver a whole new way of enjoying television for SKY subscribers. Building on SKY's position as the leading digital payTV operator in New Zealand, subscribers will now be able to take control of their viewing in ways not previously possible. With the Pace PVR, viewers will be able to pause live TV, fast forward or rewind programmes, view instant replays and use a range of time-shift, record and playback facilities such as automatically recording multiple episodes of selected series.

Martin Wrigley, the Director of Operations at SKY commented: "We're putting our subscribers in complete control of how and when they watch television. When we introduced digital television in 1998 using Pace set-top boxes we were able to offer subscribers a complete digital multi-channel experience. Now we are giving them the flexibility to watch what they want, when they want and so further adding value to their viewing experience. From our ongoing relationship with Pace it was clear that they were the obvious choice to work with us to be sure of a smooth and successful roll-out."

Laurie Knight, General Manager of Pace Micro Technology (Australia) commented: "Pace has had a long standing relationship with SKY and we are becoming known for the quality, reliability and features of our range of PVR set-top boxes both in Europe where we are leading supplier and now in Asia where we helped launched the first PVR enabled payTV service in Australia earlier this year. We are pleased that we are able to build on this and continue to support SKY with its development in New Zealand."

Pace is set to deliver its PVR units later this year with an arrangement to continue supply through into 2007.

About Pace Micro Technology

Pace Micro Technology plc (LSE: PIC) is a leader in digital television technology. The Company's primary focus is the development of innovative set-top box solutions for operators, broadcasters, telecommunications companies and retail markets worldwide.

Pace's head office is in Shipley West Yorkshire, with further offices in the USA, Hong Kong, Germany and France. For further information, please visit Pace's web site at www.pacemicro.com.

About SKY Television

SKY Television (SKY), broadcasting via both UHF and DTH is New Zealand's pre-eminent Pay TV operator, offering a wide range of sports, movies, music, on-demand and general content across more than 80 channels. At end- December 2004 it had 590,777 subscribers,

SKY launched as a three-channel UHF service in 1990, with two further channels added four years later. SKY's UHF signal reaches 83% of the country's 1.4 million households. In December 1998 it launched a digital DTH service, extending its reach to the whole country. It presently offers pay-per-view movies, live events and interactive services including Skybet, Skymail, the Weather Channel, games channel Playin' TV and motor vehicle retail guide Go Auto. For further information, please visit SKY's web site at www.skytv.co.nz