Cinea, Harmonic, and NDS Developing Integrated Solution for VOD Markets

Cinea, Inc., a subsidiary of Dolby Laboratories, Inc. (NYSE: DLB); Harmonic Inc. (NASDAQ: HLIT); and NDS (NASDAQ: NNDS) today announced they are developing an integrated video-on-demand (VOD) solution which harnesses Cineas Running Marks watermarking technology, Harmonic's VOD platform, and NDSs conditional access solution VideoGuard®. This integrated-solution architecture can allow system operators to easily deploy VOD with built-in conditional access and session-based watermarking without needing to upgrade their deployed set-top boxes.

Harmonics VOD solutions, which include the StreamLiner® video servers and Armada® intelligent content-distribution network software, provide operators with a complete, scalable, and flexible platform for delivery of any video service to a variety of devices.

We are committed to offering comprehensive, high-quality, and flexible VOD solutions to the marketplace, said David Price, Vice President of Business Development for Harmonic. As film release windows become shorter and the popularity of VOD continues to grow, efficiently protecting on-demand content becomes more and more critical. The combination of Cineas forensic watermarking capability and NDSs conditional access solutions with Harmonics VOD platform offers operators a best-in-class solution to meet their needs.

NDS leads the global market in CA and DRM solutions and currently protects the pay TV revenues for over 60 operators of all sizes around the world. With VideoGuard content protection, operators can securely deliver premium content with new TV services that build subscriber loyalty and help them grow their businesses.

Customers of our market-leading content-protection technology are showing increased interest in adding forensic watermarking to their systems, said Nigel Smith, Chief Marketing Officer for NDS. We needed a solution that could be easily integrated within our security solutions, to enable new content-consumption models. Running Marks patented architecture combined with open APIs from NDS make it easy to do so. In addition, Running Marks is the only solution that supports session-specific watermarking of pre-encrypted VOD content, an important feature for IPTV.

Cineas Running Marks technology adds unique watermarking of individual video streams to the VOD solution, offering both content providers and system operators the potential to identify piracy sources. Additionally, the flexibility of the Running Marks technology allows the watermark message insertion to take place at either the VOD head-end or the customer set-top box.

System operators have indicated a strong desire to deploy forensic watermarking capabilities across their delivery infrastructure, said Robert Schumann, General Manager, Cinea. By including the Running Marks technology in the Harmonic VOD platform with NDS conditional access, the system operator is relieved of the burden of having to do the integration themselves.

About NDS

NDS Group plc (NASDAQ: NNDS), a majority-owned subsidiary of News Corporation, supplies open end-to-end digital technology and services to digital pay-television platform operators and content providers. See www.nds.com for more information about NDS.

About Harmonic Inc.

Harmonic Inc. is a leading provider of versatile and high-performance video solutions that enable service providers to efficiently deliver the next generation of broadcast and on-demand services including high definition, video-on-demand, network personal video recording, and time-shifted TV. Cable, satellite, broadcast, and telecom service providers can utilize Harmonics digital video, broadband optical access, and software solutions to offer consumers a compelling and personalized viewing experience.

Harmonic (NASDAQ: HLIT) is headquartered in Sunnyvale, California with R&D, sales, and system integration centers worldwide. The companys customers, including many of the worlds largest communications providers, deliver services in virtually every country. Visit www.harmonicinc.com for more information.

About Cinea

Cinea, Inc., a Dolby company, develops and commercializes a broad variety of content-protection solutions for the motion picture and television industries. Current customers include many of the major film studios as well as leading service vendors in the entertainment industry. The companys forensic watermarking technology, Running Marks, allows content owners to track pirated content to specific devices, from set-top boxes to PCs to portable video devices to mobile phones. Cineas executives are well-known authorities on content protection and forensic watermarking. The company is also a founding member of the Digital Watermarking Alliance. For more information about Cinea, Inc. or Cinea® technologies, please visit www.cinea.com.

Certain statements in this press release, including statements regarding the availability of an integrated VOD solution incorporating Running Marks watermarking technology, Harmonic's VOD platform and stream processing solutions and NDSs conditional access solution; the performance, features, reliability, and capabilities of the integrated VOD solution and of Running Marks; the potential benefits that systems operators and other users may derive from the integrated VOD solution and from Running Marks; and the anticipated market acceptance of the integrated VOD solution and of Running Marks are "forward-looking statements" that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: risks that adoption of the integrated VOD solution or of Running Marks may not occur as currently anticipated; risks that the integrated VOD solution and of Running Marks may not perform as anticipated; risks associated with building market acceptance of and demand for the integrated VOD solution and of Running Marks; competition risks for watermarking technology; rapid changes in technical requirements for antipiracy protection; and other risks detailed in Dolby's Securities and Exchange Commission filings and reports, including the risks identified under the section captioned "Risk Factors" in its most recent Periodic Report on Form 10-Q or 10-K. Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

Cinea is a registered trademark of Cinea, Inc. Running Marks is a trademark of Cinea, Inc. All other trademarks remain the property of their respective owners. S08/20434

Contacts:

mPRm Public Relations
Jessica Wolf, 323-933-3399 ext. 4202 (Media)
jwolf@mprm.com
or
For NDS Group plc
Cynthia Ritchie, 44-(0)20-8476-8378
Director, Corporate Communications
critchie@nds.com
or
For Harmonic Inc.
Sarah Lum, 408-543-2392
Director, Marketing Communications
sarah.lum@harmonicinc.com

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