China Digital TV and ViXS Systems Announce a Secure Digital Video Broadcast Solution for Chinese PC Market

ViXS Systems, the leading developer of video processing solutions, and China Digital TV Holding Co. Ltd. (NYSE:STV), the leading provider of conditional access (CA) systems in China’s rapidly growing digital TV market, announced today the launch of a line of secure PC-based digital TV tuner products. This new line of smart card secured, DVB-C tuner products will serve digital cable television customers in China, and allow users to turn their PCs into powerful and secure high-definition home theaters.

Working with both PC manufacturers in China and ViXS Systems, China Digital TV has created DVB-C products for PCs that are compatible with over 180 digital cable TV network operators across China. These new products support high definition television (HDTV) playback, time-shifting, digital video recorders (DVR), scheduled program recording, electronic program guides (EPGs) and other digital cable TV features. Available today through China Digital TV’s network operators, these cable PC solutions are being sold directly to customers in select cities. The company intends to launch shortly a USB-compatible version and extend the coverage to more locations across China.

“In working with ViXS, we’ve developed a solution well suited for the Chinese digital television market,” said Jianhua Zhu, CEO of China Digital TV. “This collection of new products is enhanced by a number of exciting new hardware security features providing ‘hacker-proof’ protection for the PC. As the PC penetration rate in China is rapidly increasing, we believe the growth and sales potential of our cutting-edge technology is tremendous.”

This secure line of PC tuners is based on a single chip security hardware device that was developed exclusively for the Chinese market.

Sally Daub, President and CEO of ViXS Systems, commented, “ViXS is pleased to have found a strong partner in China Digital TV. This co-developed set of products is the perfect platform to allow for the protection and consumption of high-value content on the PC. A fundamental focus at ViXS is the implementation and deployment of secure video entertainment products. Our collaboration with China Digital TV is a sign of our commitment to success in the Chinese market.”

About China Digital TV

Founded in 2004, China Digital TV is the leading provider of conditional access (“CA”) systems to China’s rapidly growing digital television market. CA systems enable television network operators to manage the delivery of customized content and services to their subscribers. China Digital TV conducts its CA-related business through its subsidiary, Beijing Super TV Co. Ltd., and its affiliate, Beijing Novel-Super Digital TV Technology Co. Ltd., and its value-added services business through its subsidiary, Beijing Novel-Super Media Investment Co. Ltd. For more information, please visit the Investor Relations section of China Digital TV’s website at http://ir.chinadtv.cn.

About ViXS Systems, Inc.

ViXS Systems, Inc. is a fabless semiconductor company enabling advanced video processing technologies for top-tier consumer electronic (CE) and personal computer (PC) companies. The company has developed advanced video codecs with unprecedented capabilities for processing, managing, protecting and distributing broadcast-quality video. ViXS supplies IC solutions and full production reference designs to the world’s top CE and PC manufacturers, OEMs and ODMs. ViXS XCode™ video processors are deployed worldwide in a variety of designs such as IPTV/cable set-top boxes, multimedia PC boards, digital TVs, PVRs, and Blu-ray and HD DVD products. Unique video technologies developed by ViXS, such as encoding, transcoding and decoding, provide CE and PC manufacturers with the necessary feature differentiators they need to become leaders in their respective markets. An additional ingredient for the success of these products is ViXS’ support of worldwide conditional access (CA) and Digital Rights Management (DRM) whereby one product platform can support worldwide coverage. To date, ViXS has issued and filed over 150 patents. Headquartered in Toronto, Canada, ViXS is a global company with offices located worldwide. For more information, visit www.vixs.com.