Pace chosen by Viasat to launch PVR in Scandinavia

Business Wire, June 29, 2005

SALTAIRE, England -- Pace Micro Technology (LSE:PIC) the leading dedicated innovator of technology solutions for the payTV industry, has today announced a supplier agreement with Modern Times Group Viasat Broadcasting, a leading digital satellite payTV broadcaster in the Nordic region, to roll-out its first personal video recorder (PVR) service in Scandinavia.

Viasat has chosen the Pace TDS460 set-top box to roll-out its PVR service, which will enable Viasat subscribers to take full control of their television viewing. With the TDS460, viewers will be able to pause or rewind live TV and fast forward at the touch of a button. This also gives viewers the ability to do their own instant replays, for instance to review a referee's decision in a football match or to see the action again, giving them greater flexibility in the way they view programmes.

With integrated twin tuners and a 160Gb hard drive, there will be no need to fight over the remote control anymore as viewers will be able to record one programme while watching another, or even record two programmes at the same time while watching a previously recorded programme stored on the hard drive.

Hans-Holger Albrecht, President and CEO of Modern Times Group, commented: "Our launch of the PVR in the Nordic region is one important part of our strategy for the payTV market. The PVR will enhance TV enjoyment for viewers as we bring them the unique opportunity to take full control of their TV experience. The launch will also further strengthen our position as a leading and customer-oriented payTV operator in the Nordic market. In order to deliver a high-end service to our customers, we have selected Pace as a partner and we look forward to working together with them over the coming years."

Sandy Barblett, Regional Director, EMEA from Pace Micro Technology commented: "Pace has partnered with Viasat to ensure that the PVR launch will be truly successful. This is a product for the future that will allow Viasat to continue to drive customer penetration and enhance revenue growth.

We have a wealth of experience in the PVR market across the globe. We delivered the first payTV PVR for BSkyB in the UK and have recently been selected by Premiere to provide PVR set-top boxes for Germany's first personal payTV video recorder service. In the US we have just launched the Tahoe high definition (HD) digital video recorder, which leads the way in picture quality, hard drive capacity and connectivity. We are delighted that we have been able to bring this expertise to bear and to help Viasat achieve its aims in the Scandinavian market."

Initial shipments of the Viasat/Pace PVR set-top box are due to commence in Q3 2005. The set-top box will be available direct from Viasat and through Pace's distribution partners across Scandinavia.

This agreement builds on Pace's current Commercial Co-operation Agreement.

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 Modern Times Group MTG AB

Modern Times Group is an international entertainment broadcasting group with operations in more than 30 countries around the world. MTG is the largest free-to-air and pay-TV operator in Scandinavia and the Baltics, the largest shareholder in Russia's fourth largest television network, and the number one commercial radio operator in the Nordic region. The Viasat DTH satellite TV platform offers digital multi-channel TV packages of more than 50 own-produced and third party entertainment channels to viewers in 19 countries across Europe and Viasat TV channels now reach over 60 million people every day.