RGB Press Release

FOR IMMEDIATE RELEASE

RGB NETWORKS LAUNCHES WITH NEW TECHNOLOGY
FOR BROADBAND NETWORK OPERATORS

Engineering Pioneers Reunite to Introduce Industry's First Video Intelligent Processors 

SAN MATEO, CA – May 26, 2004 – RGB Networks, a Silicon Valley-based innovator of software and hardware solutions for video and data delivery, announced today that it plans to create the industry's first family of video intelligent processors that will change cable and broadband network operator economics.

The product suite is based on RGB's groundbreaking Video Intelligence Architecture™ (VIA™), an innovative design methodology that promises to revolutionize the cable industry by enabling the rapid and cost-effective deployment of new services and applications — everything from digital broadcast and video on demand (VOD) to HDTV and on-demand stream ad insertion — while delivering more digital streams per channel than any other product on the market.

VIA leverages a core set of sophisticated video processing capabilities that work with Gigabit Ethernet networking and switching technologies to deliver high-performance, cost-effective processing for digital video broadcasts and on-demand applications from a single programmable platform.  Based on RGB's Massively Dense Statistical Digital Processing, Stream Control and Digital Multiphase Processing technologies, VIA overcomes existing technological barriers to deliver the industry's highest-density solution, dramatically lowering the cost of delivering advanced services in today's digital video environments.

Backed by Kleiner Perkins Caufield & Byers and Accel Partners, RGB Networks is co-founded by cable veteran Adam Tom, RGB's president and CEO; Dr. Ed Krause, RGB's Emmy Award-winning Chief Technology Officer; and recognized transcoding expert Dr. Peter Monta, RGB's Chief Scientist.  These are the same engineering pioneers responsible for dramatically improving the digital video compression and delivery methods for digital cable TV as viewers experience it today.  Their digital compression and statistical remultiplexing expertise was developed at Imedia, which they founded in 1994 and sold to Terayon for $100 million in 1999. 

"We've been closely monitoring the development of advanced services in the industry," said RGB Networks CEO Adam Tom.  "It's clear that VOD is a critical growth area and that current on-demand architectures lack the processing technology and stream densities to meet growing usage rates.  The development of dramatic bandwidth consuming services like HDTV has created a need for technology that allows operators to deliver new services, without having to completely rebuild their cable plants."

"Cable TV's biggest competitive advantage over satellite is their ability to provide individual video streams to subscribers, using Gigabit Ethernet in their headends and their HFC distribution systems.  RGB Networks' Video Intelligence Architecture promises higher density and lower cost-per-stream," said Gerry Kaufhold, principal analyst with In-Stat/MDR.  "RGB's flexibility supports cable TV's changing landscape, which includes enhancements for advertising and new, advanced CODECs like MPEG-4 and Windows Media 9 in the future."

About RGB Networks

RGB Networks designs and builds powerful, interoperable, open protocol-based video processing and bandwidth management products that allow cable operators and other video service providers to leverage existing network investments to deliver advanced, secure, revenue-generating services.  Based on a unique Video Intelligence Architecture (VIA), the RGB solutions enable video service providers to route, switch, process and distribute video streams at rates and densities that are an order of magnitude greater than today's video processing and distribution equipment, and at considerably lower costs.

For more information about RGB Networks and the Video Intelligence Architecture, please visit www.rgbnetworks.com.

#     #     #

Media Contact:
John Giddings
Mobility Public Relations
(650) 353-4330
jgiddings@mobilitypr.com