Leading Edge R&D:

SKYSTREAM NETWORKS ANNOUNCES EIGHTH U.S. PATENT

SkyStream Networks, a leading developer of networking solutions for digital media delivery, announced a new U.S. patent, providing the company with complete ownership of all intellectual property associated with its award-winning Null Packet Optimization (NPO) technology.

The U.S. patent (6,351,471), entitled "Bandwidth optimization of video program bearing transport streams," brings SkyStream's number of patents in the field of high-performance media routing to eight. These patents represent the core intellectual property embedded in the company's award winning Source Media Router (SMR) family and reinforce its widely accepted technological superiority.

NPO is a unique solution for recovering bandwidth that is invariably wasted in MPEG-2 transport streams, without affecting the quality of the video and audio content also carried in those transport streams. This bandwidth, which can range from 2-10 percent of the full transport stream rate, represents a bonanza for broadcasters who can use it to deliver new services without impacting the bandwidth allocation for their existing digital video and audio services. These services can range from delivery of Internet based content (local news, weather, traffic, financial reports), advertiser information, asset distribution and streaming video to auxiliary data that is used to augment the video/audio programming carried in the same transport stream. NPO can also be used to the broadcaster's benefit for inserting other types of auxiliary data related to the video and audio programs such as program guide and scrambling information, which also take up additional bandwidth in the transport streams.

"It's like mining for free bandwidth in the broadcast infrastructure," said Chandy Nilakantan, CTO for SkyStream Networks. "The founders of SkyStream were the first to recognize that digital video broadcast networks could also be exploited to extend and greatly enhance the Internet infrastructure. Today, the company's Source Media Router is the anchor product in many service providers' networks, which deliver broadband Internet connectivity, TV-quality streaming media and enhanced television programming to millions of consumers and corporate users worldwide over satellite, cable and broadcast airwaves."

Award-winning NPO a Key Component of Skystream's Marketshare Leadership

Shortly after the company's inception in July 1996, SkyStream unveiled the world's first bandwidth optimizing IP encapsulator for the broadcast industry -- the Source Media Router (SMR). One of the most important features of SkyStream's SMR was and continues to be the company's newly patented NPO. These products are widely deployed in major satellite, cable TV and digital television networks throughout the world. In 1998, Satellite Communications named the SMR "Best Data Product of the Year." SkyStream's SMR product is the industry leader with the largest worldwide marketshare as reported by Northern Sky Research.

"This patent marks another major milestone in SkyStream's tradition of building and deploying groundbreaking innovations for digital information and entertainment access," Nilakantan added.

About Skystream's Products

SkyStream offers a comprehensive media delivery solution for satellite providers and broadcasters that include hardware and software elements. Together the following products offer capabilities for data and video delivery over satellite-based backbones:

• The Source Media Router (SMR) is an intelligent network device that enables satellite operators and television broadcasters to deliver Internet content to multiple locations or viewers simultaneously, ensuring maximum scalability and accessibility to high-bandwidth content. The SMR platform was recently named the industry leader, with 40 percent market share, based on units sold worldwide. (Northern Sky Research)
• The Edge Media Router (EMR) resides at the edge of enterprise networks or in service provider POPs and extracts IP content from incoming DVB MPEG-2 transport streams routing it via 10/100 Fast Ethernet onto corporate LAN or last-mile broadband networks for multi-point delivery. The EMR is an integral part of SkyStream's end-to-end solution for delivering Internet content via broadcast networks. SkyStream's EMR 5000 series was recently named "Best Overall" with the industry's highest rating. (Integrated Testing Laboratories)
• The zBand Content Delivery Platform provides tools for aggregation, content delivery, management, targeting and presentation, in a single open platform that is secure, scalable, and reliable. zBand is the ideal content delivery platform for network operators, service providers and large enterprises.

About Skystream Networks

SkyStream Networks is a leading developer of networking solutions for service providers to deliver digital media services to consumers and businesses all over the world. With SkyStream's patented bandwidth optimization technology, service providers can offer new services to increase revenue such as managed enterprise, data over satellite and digital entertainment services with a consistently high level of performance to millions of people or locations. SkyStream's customers include Clear Channel, DotCast, EchoStar Communications Corporation, Gilat, Granite Broadcasting, iBlast, New Skies Satellites, Pacific Convergence Corp, SpeedCast and Telefonica. SkyStream Networks' Web site can be found on the Internet at www.skystream.com.

Contact SkyStream Networks, Christine Yum Lenz, 408-616-3312, christine@skystream.com.