Press release

17.06.2004EN / FR / DE / IT

NAGRAVISION AND IOWA NETWORK SERVICES OFFER AN ALL DIGITAL CABLE PAY TV SYSTEM TO CABLE OPERATORS THROUGHOUT THE STATE

ORLANDO, Fla., June 17, 2004 - Cable-Tec Expo, Nagravision Booth # 727 -

Nagravision, a Kudelski Group company and the world's leading independent provider of open conditional access systems and related technology solutions for digital subscription TV, announced today that Iowa Network Services, Inc. (INS) has selected a Nagravision Conditional Access (CA) system for its all digital cable pay TV system. Using the Nagravision system, the INS digital cable headend is now capable of providing secure content to its 150 participating companies throughout the state. By receiving a digital feed from INS, the first operator to adopt the service is Dumont Telephone, which has deployed the service via its cable network Dumont Cablevision.

INS delivers a full lineup of broadcast and premium channels from its network operations center in Des Moines over its 2,000-mile statewide fiber optic network. The company is privately owned by 127 rural Iowa telephone and cable companies and provides core network transport, high-speed Internet, broadcast video and other services to independent telephone and cable companies serving approximately 280,000 residential and business customers across the state of Iowa.

To help Iowa consumers transition to digital and assist their owners and participating companies to maximize their investment, INS delivers the full line-up of channels as digital streams. Analog services are also simulcast on the network for consumers who want direct connections without settop boxes. An all digital cable set-top box provides a high quality solution and provides a platform to support future services. This distribution method allows the cable operators to customize their channel line-up, receive local channels and authorize subscribers and set up channels with the Nagravision CA system via their own customer service and billing system. The Nagravision CA system protects revenue by only providing access to paying subscribers.

"We chose Nagravision, because we wanted an open standards-based solution that would support our network architecture and provide a secure means for our owners and participating companies to offer services to their subscribers," said Howard Juul, Vice President of Network Planning at INS. "Nagravision has allowed us to minimize the cost of deployment and limit our implementation risks by supporting a wide variety of headend, middleware and set-top box products. The Nagravision system also enables us to simulcast an all digital line-up which allows for the use of an all digital cable settop box. The Nagravision system has proven to be very robust and easy to operate."

"The economics and infrastructure are now in place where all digital cable networks can become a reality. By simulcasting analog with an all digital channel line-up, INS allows their member companies to offer an innovative all digital package to their subscribers," said Tom Wirth, Vice President of Sales and Marketing at Nagravision USA. "Service operators, like Iowa Network Services, put their trust in us to provide them with a secure system that can support both current and future business needs. The flexibility of our system will help INS, its owners and participating companies add new services and increase the average revenue per subscriber."

About Nagravision
Nagravision is the world's leading independent supplier of open conditional access, advanced management tools and integrated solutions for cable, satellite, terrestrial and MMDS, FTTH and DSL operators. These advanced solutions provide digital TV and content providers with the tools to operate and manage a wide range of pay TV offerings including pay-per-view, on-demand and interactive applications on multiple digital platforms. Nagravision conditional access technologies are currently being utilized by more then 120 leading operators worldwide representing over 40 million subscribers.

Nagravision is a division of the Switzerland-based Kudelski Group and has offices in the United States, Singapore, Shanghai, India, Brazil, Spain, the UK and Switzerland. The Kudelski Group (SWX "KUD") is part of the Swiss Market Index, which includes the top 26 blue chip companies in Switzerland. Kudelski stock is also listed on the Morgan Stanley Capital International Index. See http://www.nagra.com for more information.

Contacts:

Tom Wirth
VP Sales & Marketing at Nagravision USA
+1 310 524 4205
pr@nagra.com

Ivan Schnider
Marketing & Communications Manager
+41 21 732 09 40
ivan.schnider@nagra.com