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IPTV Market Drives Record Year for SkyStream in 2005

SUNNYVALE, Calif., Jan. 18, 2006 — SkyStream, a leader in IP video delivery, today announced that increased sales in its IPTV video headend and satellite direct-to-home and VSAT businesses led to record revenue growth in 2005. SkyStream achieved 11 percent net income for the fourth quarter, and was profitable for the entire year on an EBIT basis.

“Our diverse market strategy in IPTV, satellite and cable paid off once again during Q4, where we saw growth in all three markets,” said Jim Olson, president and CEO of SkyStream. “In 2005, we shipped more than 600 of our Source Media Routers, the market-leading satellite IP encapsulation solution, and more than 600 channels of our MPEG-4 encoding and transcoding solutions, with several hundred more in backlog. We delivered our video headend technology into what may be the largest MPEG-4 deployment in the world this quarter, leading to a fantastic year for SkyStream.”

SkyStream achieved more than 50 percent growth in bookings and shipments of its iPlex video headend platform over the previous quarter. “The high density, high quality and exceptional value of our iPlex video headend platform continues to be strongly endorsed by customers in all three market segments that we serve,” Mr. Olson continued.

“The IPTV market is growing stronger, and led to our best year ever at SkyStream,” said Joe Geesman, chief financial officer at SkyStream. “We increased backlog more than 50 percent from our third quarter and achieved high gross margins both for Q4 2005 and for the year.”

Revenues for the fourth quarter 2005 were up 24 percent over the third quarter 2005 and 51 percent over Q4 2004. Annual 2005 revenue for SkyStream increased 44 percent over 2004 revenue.

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 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 over 300 customers. SkyStream’s Web site can be found on the Internet at


For more information contact:
Megan O’Reilly-Lewis
Sunnyvale, CA

Jonathan Bass
A&R Partners
California, U.S.

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