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China Telecom Selects SkyStream ZBand for Rural Internet and Video-On-Demand Service

SUNNYVALE, Calif., Oct. 26, 2005 — SkyStream, the leader in IP video delivery solutions, today announced that China Telecom, China’s largest telecommunications service provider, selected SkyStream’s zBand PUSH video-on-demand (VOD) platform in addition to SkyStream’s suite of IP video networking solutions to expand its rural Internet and video-on-demand service to remote areas.

China Telecom plans to extend broadband Internet and video services from the headend in its Shanghai Satellite division, and offer video-on-demand, video conferencing and Internet-on-demand in remote areas via satellite where broadband services are not currently available. China Telecom plans to roll out the on-demand, satellite-based services nationwide over the next 10 years to serve the 75 percent of the Chinese population that currently lives in rural areas. Over three-fourths of China is covered by mountains, desert and forest, which preclude extensive communications coverage from fiber terrestrial networks.

SkyStream will provide digital broadcasting capabilities, IP streaming over satellite and PUSH video-on-demand using its Source Media Router (SMR), Edge Media Router (EMR), micro-Edge Media Router and E-manager to manage the delivery of video and data assets to and among multiple sites, as well as direct support and sales training.

“SkyStream was the only company to present us with a complete solution for IP video delivery,” said Mr. Lui Xing-Xie, CEO of Shanghai Gaozhi, the integrator and solution provider for the China Telecom project. “Earlier this year, a team from China Telecom received extensive training at SkyStream’s U.S. campus and has been deploying this service across China ever since, reporting that they are very pleased with the quality of the solutions.”

China Telecom’s unique Turbo Internet and video-on-demand service features the most popular Web sites and videos stored on a PC hard drive that is managed by zBand both at the headend and on the PC. Using PUSH technology, zBand automates the process of regularly refreshing the Web sites and videos, managing user authorization and security, and deleting the expired content.

“China is an exciting market for IP video, and our customers there are implementing some visionary applications of our technology,” said Jim Olson, president and CEO of SkyStream. “Our products allow China Telecom to break new ground with IP video delivery to rural locations, which brings more opportunity and information to millions of people.”

zBand PUSH VOD uses a client-server architecture to schedule, manage and deliver high-quality content to multiple service provider sites or to millions of customers simultaneously over broadband or broadcast networks. With zBand, service providers have the power to manage content, bandwidth and networks in a single software platform.

SkyStream’s SMR features a patented technology that harvests unused bandwidth from a service providers’ digital spectrum to deliver new data and video services. The partner to the SMR, the dual-tuner EMR reliably receives and manages content at the network’s edge. It enables the service provider to receive the content at the remote sites while centrally managing its distribution and all the components of the network. Shanghai Satellite is also using SkyStream’s E-Manager to manage the simultaneous operation of multiple EMRs.

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 and 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.
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For more information contact:
Megan O’Reilly-Lewis
SkyStream
Sunnyvale, CA
408-616-3394
moreilly@skystream.com

Jonathan Bass
A&R Partners
California, U.S.
650-762-2822
jbass@arpartners.com

Joe Cao
SkyStream
AP Headquarters
Beijing, China
+86 10-5100-2349
jcao@skystream.com

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