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Consolidated Communications Deploys the Verimatrix Content Security Solution to Protect Premium Content on its IPTV Service; Entone's Hydra IP Video Gateway Selected to Reduce IPTV Deployment Costs
[April 18, 2006]

Consolidated Communications Deploys the Verimatrix Content Security Solution to Protect Premium Content on its IPTV Service; Entone's Hydra IP Video Gateway Selected to Reduce IPTV Deployment Costs


SAN DIEGO --(Business Wire)-- April 18, 2006 -- Verimatrix, the leading developer of IPTV content protection and security solutions, today announced the deployment of its Verimatrix Content Authority System (VCAS) with Consolidated Communications, a family of companies offering voice and data communications services to both business and residential customers. Its IPTV service, Digital Video Services, provides an affordable alterative to current cable and satellite TV services, and delivers up to three independent video streams to three rooms at each subscriber over its IP network.



Consolidated Communications, the 17th largest local telephone company in the United States with approximately 245,000 access lines, now provides triple-play services, including Video-on-Demand (VOD), pay-per-view and digital television channels. Subscribers receive ultimate value with bundled packages with their phone, Internet and digital television on a single monthly bill.

"Our subscribers have come to rely on us to provide the most innovative choice of services at the best value. With Digital Video Services, we had to offer premium content. Verimatrix not only offered the most comprehensive content security solution, it also brought the trust and approval from Hollywood studios to gain us access to that content," said Rob Koester, senior manager, Video Services, Consolidated Communications.


Consolidated Communications' IPTV deployment includes the Hydra(TM) IP Video Gateway set-top box from Entone, a leading provider of personal video content delivery solutions, along with the Myrio TotalManage middleware, headend equipment from Tut Systems and server hardware from HP. The entire integrated IPTV platform represents one of the first Siemens SURPASS Home Entertainment deployment integrated with the Hydra gateway. Today, over 75 U.S. operators are using the Siemens SURPASS Home Entertainment solution as well as many more worldwide.

"The initial market response to our new Hydra IP video gateway has been tremendous because of Hydra's benefits in supporting up to three simultaneous television streams, as well as broadband Internet access, over existing in-home coax cabling. Telcos are able to dramatically reduce their upfront equipment costs," said Ian Jefferson, VP of Business Development, Entone Technologies. "We provide telcos an additional advantage because we are fully integrated with other industry leaders, like Verimatrix. Together we provide joint support for our full suite of products and enable carriers to quickly deploy IPTV platforms."

VCAS is as a software-based content protection solution built on the principles of Public Key Infrastructure (PKI) and X.509 digital certificates. Verimatrix has pioneered the use of digital watermarking throughout the content delivery chain. Verimatrix's patent pending user-specific VideoMark(TM) enables operators to provide a verifiable chain of custody throughout the content distribution chain. In the event that content should leak from a network, Videomark provides the ability to trace the source of leakage back to the specific set-top box that was used to play out the content.

"Consolidated Communications is clearly a trend setter in this industry and we are thrilled that they recognized Verimatrix's unique ability to provide complete content security," said Tom Munro, CEO of Verimatrix. "Regional carriers are ideal customers of VCAS because they have the customer demand, mature networks and the drive to differentiate in their markets."

About Verimatrix

Founded in 1999, Verimatrix is the leading provider of digital content protection solutions, with many customers in North America, Western Europe, Japan, South Korea and Australia. Verimatrix offers provider approved, carrier-grade solutions, designed specifically for today's bi-directional IPTV networks. Through the seamless integration of patented digital watermarking technology into its best-of-breed encryption and clone detection solutions, Verimatrix protects content and revenue streams, as well as detects digital piracy wherever it occurs within the distribution chain. Verimatrix has excellent relationships with the major Hollywood studios by providing valuable anti-piracy solutions for the fight against rampant digital piracy. For more information, please visit www.verimatrix.com

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