PNO Path 1 Netwk Tech

- New Products Designed to Help Telcos Deliver High Quality Video Services Over DSL Networks - SAN DIEGO, Nov. 8 /PRNewswire-FirstCall/ -- Path 1 Network Technologies Inc. (AMEX:PNO), a leading provider of products that enable transmission of broadcast-quality video over IP networks, today announced a new suite of intelligent hardware and software for video quality protection based on Path 1's proven carrier-class technologies. With Path 1's solution, telecom carriers and IP set-top box manufacturers can eliminate network errors that might impair video quality and the reliable delivery of IP television services over xDSL networks. Path 1 will debut its Vx8000 IPTV video gateway designed for Telco video head-ends in an end-to-end demonstration featuring the market-leading DiviCom(R) multi-codec encoders from Harmonic Inc. (NASDAQ:HLIT) as well as the world's first implementation of standards-based forward error correction (FEC) on a consumer IP set-top box (STB). This new solution will be presented November 9 - 10, 2005 at TelcoTV in San Diego in Harmonic's booth (#606). "Today's telecom network is well suited to delivering 'light weight' narrowcast services such as IP telephony and Internet access. By deploying Harmonic's advanced IP-based digital video solutions, telecom operators can leverage these same networks to deliver compelling, personalized broadcast and on-demand television with superior picture quality that reduce churn and increase lifetime customer value," stated Thierry Fautier, Director of Telco Solutions for Harmonic Inc. "Since quality is paramount, we have integrated our versatile IPTV compression solutions with forward error correction systems such as those provided by Path 1 to achieve even higher levels of service reliability without expensive network infrastructure changes." In order to effectively compete with video services provided by cable and satellite operators, telecom carriers must rely on flawless video distribution between each Central Office (CO) and their subscribers' homes. Unlike high-speed data, video services require higher bit rates and are much more sensitive to lost or delayed packets. IPTV infrastructures are already subject to several sources of transmission errors, including physical layer errors due to noisy DSL lines and network layer errors such as variable delay (jitter) and congestive loss. While DSL devices typically incorporate some quality protection against transmission errors, they do not support the long, interleaved forward error correction required for video services. All of these issues can affect video quality displayed through IP STBs and degrade the viewer's experience in the form of macro blocking, jerky playback, frozen pictures or even blackouts. Path 1's products deliver several immediate benefits to an IPTV environment, including: 1) Quality of Service -- In order to keep customer satisfaction high and churn low, Telcos will need to provide Service Level Agreements (SLA) to customers and minimize all transmission problems that may cause downtime or degrade picture quality. 2) Extend Reach to New Subscribers -- In many situations, residential customers may be too far from COs to receive high quality video services. Path 1's suite of technologies overcome IP and DSL problems and allow IPTV providers to increase high-quality video service coverage per CO by increasing the serviceable distance between subscribers and the CO. 3) Investment protection of high definition (HD) MPEG2/4 Video Encoders -- When video is highly compressed by HD encoders, even minor packet loss can lead to severe picture distortions. To achieve a very high degree of compression, MPEG-coded video relies on intra-frame/inter-frame prediction and motion estimation to remove spatial and temporal redundancies. However, the loss of a single packet affects not only a single macro-block, but also other macro-blocks within the frame and in predicted frames. Human eyes can easily detect these kinds of errors, giving the video a "poor quality" look. "IPTV providers have been preoccupied with issues like content licensing, video formats and middleware. As these issues are resolved and new video services are rolled out, the focus will shift to scaling networks and channels to support large numbers of concurrent users. That's when quality issues will become more pronounced," stated Dan McCrary, Vice President of Marketing for Path 1. "IP networks are prone to errors that affect video -- that's just a fact of life. By working closely with leading IPTV equipment providers like Harmonic, we can ensure that Telcos can reliably operate their video services over IP networks." About the Vx8000 IPTV Gateway The latest version of Path 1's Vx8000 IPTV gateway is designed to specifically address the problems associated with real-time delivery of video content over IP and DSL networks. Path 1's IPTV gateway, which includes an enhanced FEC solution, intelligent error protection and packet marking, minimizes the visual effect of packet errors and addresses congestive loss. In addition, Path 1's gateway intelligently marks individual packet priority based on the visual importance of a packet's contents. This results in greater overall quality protection for a given video stream. The Vx8000 IPTV gateway also combines support for standards-compliant Pro-MPEG COP #3 FEC and enhances the standard by adding Path 1's ClearPath FEC, a proprietary, high-performance encapsulation and forward error correction technology. Both forms of FEC are included in the same product and are user selectable based on the appropriate network environment. As a result, the Vx8000 IPTV gateway can overcome any type of loss/outage that can occur over any type of IP network, including consumer-grade DSL networks. Path 1 has designed its software-based implementation of the FEC algorithm so it can be added seamlessly to existing and new STBs without requiring hardware redesign or significant cost increase, paving the way for widespread adoption by many IP STB vendors. Path 1's Vx8000 IPTV gateway enables telecom carriers to deliver real-time, broadcast-quality MPEG-2, MPEG-4 and VC-1 (MPEG-2 TS) video in both Standard (SD) and High Definition (HD) formats to remote locations over public and private IP networks. Leveraging Path 1's advanced "Quality of Video" (QoV) technology, the gateway shields the video from any impairments imposed by an IP network. By integrating the Vx8000 into their networks, telecom operators can inexpensively enhance their real-time video capabilities and scale their support for distribution services as demand grows over time. Because it is standards-based, the Vx8000 is also fully interoperable with virtually any type of networking equipment and can be deployed into any existing broadcast infrastructure. For additional information, please visit http://www.path1.com/ or call 877/ONE-PATH (663-7284). About Harmonic Inc. Harmonic Inc. is a leading provider of digital video, broadband optical networking and IP delivery systems to cable, satellite, telecom and broadcast network operators. Harmonic's open standards-based solutions for the headend through the last mile enable customers to develop new revenue sources and a competitive advantage by offering powerful interactive video, voice and data services such as video-on-demand, high definition digital television, telephony and Internet access. Harmonic (NASDAQ:HLIT) is headquartered in Sunnyvale, California with R&D, sales and system integration centers worldwide. The Company's customers, including many of the world's largest communications providers, deliver services in virtually every country. Visit http://www.harmonicinc.com/ for more information. About Path 1 Network Technologies Inc. Path 1 Network Technologies Inc. is the pioneer and leading provider of video transport products that enable the conversion and distribution of real-time, broadcast-quality video over Internet Protocol (IP) through public and private networks. From the delivery of live MPEG-2, MPEG-4, and VC-1 standard definition (SD) and high definition (HD) broadcasts to video on demand (VOD), Path 1's video infrastructure platforms allow broadcasters, cable, Telco, satellite and mobile operators to transmit high-quality point-to-point, multipoint and multiplexed video across town or around the world. To find out more about Path 1 Network Technologies Inc. (AMEX:PNO) visit our website at http://www.path1.com/ or call 877/ONE-PATH (663-7284). SAFE HARBOR STATEMENT: This news release contains "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future", "plan" or "planned", "will" or "should", "expected", "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events or results to differ materially from those projected in the forward-looking statements, including the risks that we may require future financing, that our products might not achieve customer or market acceptance or that they might not perform as expected, that customer trials might not lead to future sales, that our sales might fluctuate between reporting periods and other risks identified in our annual report on Form 10-K and other filings with the SEC. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof and Path 1 undertakes no obligation to update such statements. Media Contact: Investor Contact: Alice Borda Amy Cozamanis / Lasse Glassen Sterling Communications Financial Relations Board Office: 408-395-5500 Office: 310-854-8314 DATASOURCE: Path 1 Network Technologies Inc. CONTACT: Alice Borda of Sterling Communications, +1-408-395-5500, , for Path 1 Network Technologies Inc.; or Amy Cozamanis, , or Lasse Glassen, , both of Financial Relations Board, +1-310-854-8314, all for Path 1 Network Technologies Inc. Web site: http://www.path1.com/ http://www.harmonicinc.com/

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