SecureMedia and IBM Team to Deliver On Demand Business Solutions to IPTV Industry Customers

Market Wire, February, 2006

SecureMedia (www.securemedia.com), a leading provider of conditional access and digital rights management (CA/DRM) software solutions for video content delivery over IP networks, announced today that it has achieved industry optimized status in IBM's PartnerWorld Industry Networks. As a participant in the PartnerWorld Industry Networks, SecureMedia can take advantage of IBM's sales, marketing and technical expertise to develop and deliver solutions that meet customer requirements in the IPTV industry.

Customers are seeking solutions that can help them better integrate processes and applications and allow them to quickly respond to changing market opportunities -- all key elements in transforming to an On Demand business.

SecureMedia is a leading provider of conditional access/digital rights management (CA/DRM) software for the secure distribution of broadcast television and video-on-demand (VOD) content over broadband Internet Protocol (IP) networks. The Company's Encryptonite System(TM) software provides persistent cryptographic protection of video content from its source to the point of consumption while enforcing consumers' usage rights to content. Encryptonite operates on a variety of hardware and operating system platforms and features an ultra-light and processor-efficient client for low cost integration in resource constrained embedded devices, set-top boxes, and PCs. Encryptonite provides content owners and distributors the highest levels of digital content security while offering service providers operational flexibility, massive scalability, and low overhead performance in protecting VOD and broadcast IPTV.

SecureMedia has been working alongside IBM at Cavalier Telephone in Virginia in the launch of North America's first IPTV service based on the new H.264/AVC video standard. Cavalier Telephone is a competitive local exchange carrier (CLEC) serving business and residential customers across five states and the District of Columbia. Cavalier will provide its customers with a complete lineup of the top broadcast pay TV channels, as well as Video on Demand (VOD) content from the major Hollywood studios, all protected by SecureMedia's Encryptonite System.

"SecureMedia is proud to have achieved optimized status in IBM's PartnerWorld Industry Networks," said Fred Ellis, CEO of SecureMedia. "IBM is bringing telcos and broadband service providers state-of-the-art IPTV solutions with the expertise and support to help operators quickly launch compelling television services. We are glad to be offering our IPTV security system through IBM PartnerWorld so service providers can acquire distribution rights to the top broadcast pay TV networks and Hollywood VOD content while securing their related revenue streams."

"Open standards based architecture and cost-effective solutions are must-haves for customers," said Buell Duncan, general manager, ISV & Developer Relations, IBM. "We are pleased to work with SecureMedia through IBM's PartnerWorld Industry Networks to provide secure on demand business solutions to customers in the IPTV industry."

The IBM PartnerWorld Industry Networks provide ISVs with comprehensive business insight, technical resources, networking opportunities, and marketing and sales support designed to help them reach more customers and close deals faster. Participants in the PartnerWorld Industry Networks can team with IBM to bring on demand solutions to market more easily and to ensure these solutions meet specific industry needs, reflecting how customers buy technology today.

ISVs can sign up for PartnerWorld Industry Networks at www.ibm.com/isv

About SecureMedia, Inc.

SecureMedia, www.securemedia.com, is a leading provider of open platform conditional access and digital rights management solutions for the delivery of video-on-demand, IPTV and other digital content over broadband IP networks. The Company provides a range of content security solutions from the comprehensive Encryptonite System(TM) CA/DRM solution to software toolkits, hardware cores and plugins for third party media delivery systems. SecureMedia's customers represent industry leaders and include Cavalier Telephone, TV Sierre, Sony, NTT, BB Cable Corp., China Data Broadcasting, Eona and RealNetworks. SecureMedia has offices in Boston, San Francisco and Auckland, New Zealand, with representatives in Tokyo, Beijing, Seoul and Amsterdam.

SecureMedia is a registered trademark and Encryptonite is a trademark of SecureMedia, Inc. All other company and product names are trademarks or registered trademarks of their respective owners.

Contacts: For SecureMedia Michael Krems Krems Public Relations 1 650-759-7133 Email Contact