ICE™ Broadcast System Gives Cable Operators a Powerful Strategic Weapon in the Escalating Battle for Premium Subscribers

SCTE Conference on Emerging Technologies (LOS ANGELES) - January 14, 2008 - Imagine Communications, the leading innovator in advanced digital video processing and edge multiplexing solutions, today announced its first available product, the ICETM Broadcast System. Based on the powerful ICE™ Video Platform, the ICE Broadcast System gives cable operators the ability to carry up to 50 percent more high definition (HDTV) and standard definition (SDTV) digital broadcast signals within their digital broadcast spectrum, without sacrificing video quality.

Leveraging its breakthrough video processing and multiplexing technology, Imagine's ICE Video Platform delivers the highest video quality at any given bit rate, solving the fundamental and elusive paradox of how to cost-effectively increase bandwidth efficiency without sacrificing video quality. The ICE Video Platform comprises a suite of solutions and products for digital broadcast, Switched Digital Video (SDV) and VOD. In each case, Imagine's core technologies of Interchangeable Compressed Elements (ICE) and video quality measurement (ICE-Q™) address the video quality and bandwidth efficiency needs of cable operators.

The ICE Broadcast System, available now, is the solution cable operators have been seeking to expand their HD and SD services while maintaining the highest video quality. It is now ready for widespread deployment, having undergone extensive refinement, enhancement and stabilization with major cable operators over the last several months.

Imagine's VP Product Strategy & Management, Lorenzo Bombelli, stated "With competitors announcing plans for over 100 HD channels, and video quality expectations simultaneously rising, due primarily to the mass consumer adoption of large screen HDTV displays and the growing popularity of Blu-ray and HD-DVD, all service providers are now racing to create additional bandwidth to carry dozens of new HDTV services at excellent video quality. It became an urgent cable industry issue to quickly adapt our technology for the digital broadcast market, for both HD and SD applications."

Ron Gutman, Imagine's CTO and co-founder, added, "Our core breakthrough technology has broad applicability to any digital video application. While we've mostly associated ourselves to date with SDV and VOD VBR/StatMux (Variable Bit Rate/Statistical Multiplexing), for enabling the best video quality at any given bit rate, the same benefits apply to digital broadcast, and we're excited to be offering a product that solves such a critical and timely issue for cable operators."

Benefits of the ICE Broadcast System
" Superior Video Quality - With Imagine's ICE-Q™ video quality engine, operators are able to provide the best 3:1 HD (and 15:1 SD) broadcast quality relative to MPEG-2 re-encoders and traditional statmux devices.
" Unprecedented Bandwidth Efficiency - Empowers cable operators with the most efficient multiplexing of HDTV and SDTV broadcast channels, allowing them to compete more effectively against DBS and TelcoTV service providers.
" Video Layer Quality of Service ("Video Layer QoS") - Starts laying the foundation for the industry's first end-to-end Video Layer QoS solution, allowing content providers and cable operators to pre-calibrate and establish video quality levels which are sustained, at the video layer, from content origination all the way to the set-top box.
" Cost Effectiveness - Relative to other bandwidth expansion options, such as node splits, Switched Digital Video (SDV), or MPEG-4 upgrades, Imagine's solution is by far the most cost effective and least disruptive solution.
" High Reliability - Imagine's solution has standard IP/GbE inputs and outputs, enabling seamless interoperability with cable's evolving IP infrastructure. Moreover, the ICE Video Platform (including the ICE Broadcast System), leverages standards-based hardware and highly reliable software components, as well as robust redundancy schemes.

The ICE Broadcast System consists of ICE Broadcast Processors, which accept and re-process compressed MPEG-2 digital signals using Imagine's ICE-Q video quality algorithms. Then, using the ICE Multiplexer, these signals are statistically multiplexed for Multiple Program Transport Stream (MPTS) digital broadcast over cable. In this fashion, for the first time, cable operators are able to broadcast three digital HDTV or 15 digital SDTV signals in a 256 QAM channel while maintaining excellent video quality.

About Imagine Communications
Imagine Communications has launched the industry's most powerful and scalable digital video platform, enabling system operators to cost-effectively increase bandwidth efficiency and video quality of HDTV, Switched Digital, VOD, and other advanced digital video services. The Imagine ICE™ Video Platform delivers the best video quality at any given bit rate, and also provides Video Layer Quality of Service, offering system operators unprecedented control over video quality. Imagine is based in San Diego with R&D and engineering in Israel. Imagine's strong management team includes industry leaders with decades of experience delivering innovations in video communications. Founded in 2005, Imagine Communications is privately held and funded by Carmel Ventures, Columbia Capital and Court Square Ventures. For more information, www.imaginecommunications.com