ToughStream Enables Error-free, High-quality IPTV Service, Regardless of Network Conditions

FREMONT, Calif. - February 6, 2008 - Digital Fountain, Inc., a leading provider of advanced standardized solutions for digital media delivery, today announced that Tele2 Nederland, the first IPTV provider in the Netherlands, has selected ToughStream Solution to further improve their IPTV service. After successful trials, ToughStream is now live and operational on Tele2's IPTV network, providing protection against "glitches," or visible errors that naturally occur when delivering real-time media over IP networks.

ToughStream is a software solution that eliminates video and audio degradation caused by packet loss, latency or out-of-order delivery. These effects are normal and prevalent conditions on all IP networks because IP is, by design, a "best effort" delivery protocol. Because it is a software-based solution, ToughStream is highly configurable, and easy to deploy on any IPTV network. An extraordinarily scalable solution, ToughStream has negligible hardware requirements while providing high QoE including fast channel change times.

"If you want your IPTV customers to start looking around at cable, satellite or DVB-T, give them a poor picture. Nothing drives high churn rates more than a TV image which is worse than your neighbors'. IPTV operators are starting to realize that video quality is THE issue, not channel change speed, or new EPG interface, not even price. It's video quality," said Peter White, principal analyst with Faultline, Rethink Research's digital media service. "There are three ways to drive up video quality. You can resend IP packets, or use extra bandwidth, but both of these are expensive options. The first thing to look at is a leading edge error correction system like ToughStream."

ToughStream is powered by Digital Fountain's DF RaptorTM technology. DF Raptor has been adopted by several IPTV standards, including DVB-IPTV (Digital Video Broadcasting - IPTV) as well as several mobile multimedia standards including 3GPP MBMS and DVB-H. Other standards bodies are currently evaluating DF Raptor as a best practices standard for high-quality IPTV and mobile multimedia service delivery.

About Digital Fountain

Digital Fountain is a leading provider of advanced standardized solutions for digital media delivery, even in the most challenging network environments. Digital Fountain solutions are currently deployed in advanced IPTV, CDN, and mobile delivery applications throughout the world, and have been adopted by leading global standards bodies, including DVB, and 3GPP. Many other standards bodies are currently evaluating DF Raptor as a best practices standard for digital media delivery. Partners and customers include leading global companies such as Cisco Systems, Sumitomo Electric Networks, Northrop Grumman, KDDI, SK Telecom, Sirius Satellite Radio, XM Radio, Sony, Nokia, and many more. For more information, please visit www.digitalfountain.com.