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Aztech Selects SkyStream for Largest U.S. MPEG-4 Deployment; SkyStreams MPEG-4 transcoders used to deliver IPTV to 20,000 homes in Arizona

TELECOM ’05 TRADESHOW, LAS VEGAS, Oct. 25, 2005 — SkyStream, the leader in IP video delivery, today announced Aztech Arizona LLC has chosen SkyStream’s Mediaplex-20 video headend to provide MPEG-4 AVC encoding and transcoding for the largest operational MPEG-4 deployment in the U.S., as measured by subscriber count and channels offered.

Aztech, a North American builder of fiber optic communities, selected SkyStream in part for its transcoder–a first-of-its-kind product that converts MPEG-2 to MPEG-4 AVC in a single step. In the initial phase of its deployment, Aztech will deliver 150 video channels via fiber-to-the-home (FTTH) to 20,000 homes in the El Rio development of Arizona’s Mohave Valley.

As one of the world’s first operators to build an end-to-end MPEG-4 network, Aztech will supply MPEG-4 video content through fiber lines to both residential and commercial subscribers using SkyStream’s Mediaplex. SkyStream’s video headend platform delivers high-quality IPTV services over any last-mile network, including FTTH, ADSL and CATV.

With more than 90 percent of today’s digital content only available in MPEG-2, SkyStream’s transcoding capability allows television operators to take advantage of the compression efficiency and minimal bandwidth consumption of MPEG-4 technology. By cost-effectively and reliably turning MPEG-2 video content into low bit-rate MPEG-4 through an all-digital conversion process, television operators can distribute bandwidth-intensive services like IPTV and VoD to their subscriber bases.

“Our advanced, end-to-end MPEG-4 network allowed us to offer subscribers the latest video services, but the lack of available MPEG-4 content made it difficult to fully take advantage of the benefits of MPEG-4,” said David Nelson, president of Aztech. “With SkyStream’s transcoding capability, we can easily convert MPEG-2 content into MPEG-4 without sacrificing picture quality or reliability. We capitalize on MPEG-4’s bandwidth savings and our subscribers receive high-quality video offerings. It’s a win-win situation.”

SkyStream’s Mediaplex also offers compact broadcast-quality MPEG-4 encoders. By holding 48 encoders in a single chassis, SkyStream’s Mediaplex supports real-time, high-density encoding and integrates a broad array of video functions that reduce power requirements and rack space.

“Aztech’s deployment demonstrates the growing momentum around MPEG-4 compression technology for the delivery of advanced video services,” said Andy Lovit, vice president of worldwide field operations at SkyStream. “This new customer marks SkyStream’s popularity among television operators for IP delivery over all last mile networks, from FTTH to ADSL 2+.”

SkyStream continues to experience strong growth for its MPEG-4 solutions, with more than 25 worldwide MPEG-4 customers, including Aztech. For additional details on SkyStream’s MPEG-4 products, please contact info@skystream.com or +1 (408) 616-3300.

About Mediaplex-20 Headend
SkyStream’s Mediaplex-20 system is a carrier-class, complete video headend in a single chassis that enables a new level of converged services over any last mile (ADSL, FTTH, and CATV).

It’s the industry’s first fully-integrated video headend to deliver MPEG-4 AVC encoding. With its highly dense capacity of 48 MPEG-2 or MPEG-4 AVC encoders, SkyStream’s Mediaplex headend can distribute hundreds of high-quality video channels for large-scale video delivery in multiple formats and rates to millions of subscribers at the same time. The Mediaplex-20 system also provides video multiplexing and demultiplexing, routing, video rate-shaping, stream replication, and ATM to IP conversion. The Mediaplex-20 video headend has over 100 field-proven deployments in 18 months.

For service providers planning smaller deployments or in space-constrained environments, SkyStream also offers the iPlex ultra-compact video headend in a 1 RU form factor that provides the same integrated video headend capabilities of the Mediaplex-20 headend. The iPlex is the highest density integrated headend available today, supporting up to 8 MPEG-2 or MPEG-4 AVC encoders.

About Aztech Arizona LLC
Aztech Arizona LLC, headquartered in Arizona, is an innovative builder of fiber optic communities in North America. Aztech deploys fiber optic networks to the premises — directly into a home or business location. Aztech delivers IP video, VOD, telecommunications services, Internet and intelligent home management capabilities to its fiber-to-the-premises subscribers.

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About SkyStream
SkyStream provides IP video delivery platforms that enable service providers to transform their business by offering IPTV and MPEG-4 Video Services. SkyStream’s products lower opex and capex costs by 40 percent to 50 percent, optimize video delivery over any last mile network, and include zBand content delivery software, Mediaplex-20 and iPlex switched digital video headends and the Source Media Router series of IP encapsulation solutions. SkyStream is the fastest-growing provider of IP video solutions with more than 300 customers. SkyStream’s Web site can be found on the Internet at www.skystream.com.

Contact:
Megan O’Reilly-Lewis
SkyStream
Phone: +1 408-616-3394
Email: moreilly@skystream.com

Jonathan Bass
A&R Partners for SkyStream
Phone: +1 650-762-2822
Email: jbass@arpartners.com

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