Press Release

04.07.2006
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ABILIS SYSTEMS ANNOUNCES MANUFACTURING AGREEMENT WITH IBM MICROELECTRONICS

Geneva, July 4th, 2006 : Abilis Systems, a Kudelski Group company, announced today that IBM Microelectronics will manufacture its mobile digital TV chips for the cellular phone, portable media player, and PC laptop markets.

Abilis Systems is the first semiconductor fabless company to propose a single-chip mobile TV solution, integrating both the RF tuner and the demodulator on a 90nm RF CMOS process. Such advanced process further improves the RF characteristics and the power consumption of Abilis' innovative designs. As part of the agreement, Abilis Systems will also add its RF clock synthesizer into IBM IP portfolio.

"We have chosen IBM for the high performances of their RF CMOS process and the quality of the RF design kit which have been key to achieve our technical and time-to-market objectives" said Yves Mathys, Abilis CEO. "Our customers can now rely on the manufacturing capabilities of IBM to meet their needs in terms of quality, volume and continuity of supply."

"Mobile TV is an exciting market and one where innovative fabless companies developing highly integrated RF design solutions are driving the agenda. IBM is delighted to have been selected by Abilis as the foundry vendor for their single chip mobile TV device based on IBM's 90nm RF CMOS process." said Adrian O'Connor, European Sales Director for Semiconductors, IBM Systems and Technology Group. "We are also very pleased to welcome Abilis' RF synthesizer IP into IBM foundry's Ready for IBM Technology (RFIT) program. Leading edge third party IP remains a key part of IBM's foundry offering."

About Abilis Systems
Abilis Systems (www.abiliss.com) is a semiconductor fabless company, founded in 2004 by a team of former Motorola SPS employees. Abilis develops single chip CMOS solutions for OFDM-based radio communication standards, including mobile TV receivers and high speed internet access transceivers. In 2005, Abilis became part of the Kudelski Group ,and actively cooperates with Nagravision to propose more secure and fully featured conditional access solutions to mobile TV operators.

Contact : Eric Gouze - Head of Business Development
tel : +41 22 706 1930
mail : eric.gouze@abiliss.com

Abilis Systems
18 chemin des Aulx
1228 Plan-les-Ouates/Geneva
Switzerland
+41 22 706 1930

About the Kudelski Group
The Kudelski Group (www.nagra.com) is a world leader in digital security. Its technologies are used in a wide range of applications requiring access control and rights management, whether for securing transfer of information (digital television, broadband Internet, video-on-demand, interactive applications, etc.) or to control and manage access of people or vehicles to sites and events. The Kudelski Group is headquartered in Cheseaux-sur-Lausanne, Switzerland, and its stock is listed on the Swiss Market Index (SWX:KUD).

Contact : Ivan Schnider, Marketing & Communications Manager,
tel. +41 79 778 94 12.
mail : ivan.schnider@nagra.com