Arroyo Leverages IBM Server Technology to Deliver Record Video Stream Density; Enhanced Solution Breaks the Scalability Barrier to Power Personalized Television Services Including VOD and nPVR

Business Wire, June 19, 2006

DENVER -- Demonstrations in Arroyo's Booth #1380 at SCTE Cable-Tec Expo, June 21-23 in Denver

Arroyo Video Solutions, Inc. today announced scalability enhancements to its on-demand solution that will make it easier and more cost-effective for operators to deploy personalized TV services such as network PVR (nPVR) to a mass audience. By combining Arroyo's innovative Linux-based, video networking software with IBM System x366 products, the platform delivers more than 80,000 streams per rack, the highest performance streaming solution available, and doubles the density of competing systems.

Unlike proprietary standalone on-demand solutions, the combination of Arroyo and IBM technology allows any number of servers and racks to be networked together within a metro, regional or national topology, creating one large virtual server which has unlimited scalability. Arroyo will demonstrate the solution at the SCTE Cable-Tec Expo this week in Denver, June 21-23 in booth #1380. The demonstration will implement a massively dense VOD network consisting of the Arroyo software running on five IBM System x366 servers interconnected by a Cisco Catalyst 7606 switch equipped with 20 10-Gigabit interfaces, which together supports 30,000 simultaneous MPEG-2 streams.

"Service providers want open solutions that allow them to reduce their costs and protect their existing investments, while allowing them to take advantage of the latest advances in computing technology," said Dick Anderson, General Manager, IBM Media and Entertainment Industry. "We are convinced that, by working with leading solution providers like Arroyo to deliver open solutions powered by highly-scalable IBM systems, we will move one step closer to the day when all content will be available on demand, any time, any place, at the touch of a button."

"As personalized TV services such as nPVR begin mass market deployment, operators need the scalability to deliver a stream to every home as well as to expand their ability to ingest and store increasing volumes of programming," said Arroyo's President and CEO Rick DeGabrielle. "With Arroyo's video networking software running on IBM systems, we've not only raised the bar with respect to stream density, but we can take any number of servers, distribute each where it makes the most sense within the network, and manage them all as a single, cohesive unit. The result is a 'virtual server' that encompasses the entire network and provides unlimited scalability. Our solution is unique in that it does for video what has previously been applied only to voice and data. You can't do that with proprietary standalone servers."

For more information about IBM, visit: http://www.ibm.com

About Arroyo Video Solutions

Arroyo creates innovative video networking software that powers the delivery of personalized television. The company's real-time networked video architecture intelligently pools and load balances industry-standard servers to deliver unlimited network scalability and non-stop service availability at the lowest total cost. Using Arroyo's networked VOD, nPVR, ad insertion and time shifting applications, operators are breaking the limits of stand-alone servers to deliver highly personalized, revenue-rich video services across their entire operating footprint.

Arroyo's customers consist of operators and service providers around the world, including leading U.S. cable operators Comcast, Time Warner Cable and Charter. For more information, please visit http://www.arroyo.tv.