Education & Distance Learning Enthusiasts- Distance Learning Leader BTV + Selects Modulus Video MPEG-4 AVC Systems; Move to IP-Based Video Backhaul Reduces Backhaul Costs and Enables BTV + to Reach

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Distance Learning Leader BTV + Selects Modulus Video MPEG-4 AVC Systems; Move to IP-Based Video Backhaul Reduces Backhaul Costs and Enables BTV + to Reach

Business Wire - October 26, 2004

SUNNYVALE, Calif. -- Modulus Video, Inc., the AVC Company, announced today that interactive distance-learning leader BTV + has purchased multiple complete MPEG-4 AVC encoding/decoding systems. The Modulus Video ME1000 encoder and MD1000 decoder systems will enable BTV + to migrate its services to an IP-based video model that dramatically reduces the cost of video backhaul and enables the company to extend immediately its services to a broader, global market.

BTV +, Modulus Video and Path 1 will demonstrate the system in Booth 416 of the SATCON conference and expo, October 26-27, Jacob Javits Convention Center, New York City.

BTV + President and CEO Larry Steinman said, "We have had our eye on IP-based video as a means of expanding the availability of interactive distance learning to a broader market. Thanks to the MPEG-4 AVC systems from Modulus Video, the technology is ready and the time is right. Modulus Video solutions deliver the high resolution, broadcast-quality video our corporate clients expect and the reliability we count on. This will revolutionize the distance learning business and BTV + is very pleased to be the first to offer it. BTV + can now deliver services locally, anywhere in the world."

Modulus Video President and CEO Bob Wilson said, "IP-based video transport using AVC systems from Modulus offers tremendous operational advantages to anyone in the business of moving video. By reducing bandwidth requirements to half or less of that required of earlier technologies like MPEG-2, companies like BTV + can dramatically reduce the cost and complexity of video distribution. By embracing AVC now, BTV + is dramatically strengthening its competitive position in the distance learning market."

The end-to-end encoding/decoding AVC systems from Modulus Video confers several specific advantages to BTV +, most important the ability to compress video to fit T1 and bonded T1 bandwidth. This means that BTV + can backhaul video to its Toronto-based operations center using standard networking infrastructure already in place at many businesses rather than costly dedicated fiber lines.

The system at BTV + guarantees uninterrupted, broadcast-quality secure delivery over the public Internet by taking advantage of technology from Modulus partner Path1. The result is the ability to move video at a fraction of the cost of other currently available video transport technologies. It also means that BTV + can offer its services to virtually any company worldwide that has T1 capacity.

BTV +, founded in 1981, is a world leader in IDL having pioneered the concept. BTV + serves the major banks, grocery stores, post offices , gaming networks, and automotive manufacturers in both Canada and the United States . BTV + builds and operates manned and robotic broadcasting studios, and pioneered unmanned IDL broadcasting studios which are operated robotically from anywhere over IP. Visit BTV + on the web at www.btvplus.com.

About Modulus Video, Inc.

Modulus Video, Inc. is a provider of next generation HD and SD video compression solutions for digital television based on the AVC (H.264 / MPEG-4.10) standard. Its products include encoders and professional decoders, for broadcast, narrowcast and video-on-demand that provide significantly greater efficiency over legacy MPEG-2 systems, while working seamlessly within that existing transport infrastructure. Modulus Video provides long-term, cost-effective solutions for meeting the increased demand for bandwidth confronting market segments including: contribution / distribution; digital television delivered via satellite, cable, terrestrial, or DSL; and enterprise networks. Modulus Video is based in Sunnyvale, California and was founded in 2002. For more information, please visit www.ModulusVideo.com.

BTV +, Modulus Video and Path 1 will demonstrate the system in Booth 416 of the SATCON conference and expo, October 26-27, Jacob Javits Convention Center, New York City.

About Modulus Video, Inc.

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