(4 December 2006 9:30 pm)

MUMBAI: Pay television technology provider NDS has
acquired residential gateways software firm Jungo.
Jungo NDS says brings experience in embedded software
for home networks and IP service delivery devices.

The acquisition NDS says bolsters its position in the
growing broadband television market Jungo's products
and expertise further accelerate introduction of new
end-to-end solutions for the converging
broadcast/broadband market.

Jungo's market presence in major telecom firms will
help NDS promote its Synamedia IPTV system offerings.
The acquisition cost $107.5 million in cash
This includes $17 million of earn-out payment
contingent on the attainment of certain fiscal targets
for the 12-month period following completion. The
completion of the acquisition is expected to occur
during the first calendar quarter of next year.

Jungo's numerous innovations include OpenRG, a
complete and integrated middleware software platform
for deployment on network devices in the digital home
and small office including triple play residential
gateways, home/SOHO routers, wireless access points,
cable/DSL routers and voice gateways. Jungo's
customers are leading residential gateway
manufacturers like Actiontec, Cisco, Pirelli, Sagem,
Siemens and Westell, who sell their residential
gateways to major broadband pay-TV operators such as
France Telecom, NTT, Qwest, Telecom Italia, Verizon
and others.

Residential gateways, have grown in sophistication,
and are increasingly deployed by telcos as the main
service termination point in the customer premises for
the delivery of a variety of value added services
including broadband data, IPTV, voice over internet
protocol (VoIP) telephony, video telephony and
convergent wireless/wireline telephony. The
residential gateway and the software contained in it
act as the interface between the broadband network and
the various consumer electronic devices that are
attached in the home network including IPTV set-top
boxes.

The residential gateway plays a key role in
controlling the quality and management of the
individual services, such as video, data and
telephony. Providing the key underlying software for
both the residential gateway and the set-top box will
allow NDS to offer a unique solution for an enhanced,
optimised and managed video over broadband service. In
addition, the collaboration between the two devices in
the home network will accelerate the introduction of
new and innovative convergent services such as
enabling the set-top box to access music, video and
pictures stored on PCs in the home network, archiving
of digital content stored on the DVR and video
conferencing via VoIP.

NDS president and CEO Dr Abe Peled said, "The
acquisition of Jungo positions NDS to better serve the
ever-increasing need of pay-TV and telecom network
operators to offer reliable video over broadband
services. We are extremely excited about joining
forces with the Jungo team to achieve our shared
vision of securing and enabling content any time
anywhere and on any device. We are of course committed
to serving all of Jungo's current customers after the
transaction closes, as well as helping the Jungo team
expand their market penetration worldwide."

Jungo will continue to operate as a separate unit
within NDS under the leadership of the current
management team. It will focus its activities on the
residential gateway software market while closely
collaborating with other NDS business groups to forge
stronger relationships with broadband customers and to
offer new and innovative end-to-end solutions.

Jungo CEO Ofer Vilenski commented, "This is an
exciting time for Broadband. Residential gateways are
enabling television, data services, telephony and a
host of new services to be delivered over IP networks.
Our association with NDS will allow both companies to
deliver to consumers new and innovative applications
and services. We are delighted about joining NDS, and
about the confidence our customers will have using our
products, now backed by such an accomplished and
innovative company. Jungo's success was made possible
by our extremely talented employees, whose expertise
and teamwork gave us the ability to define and lead
this market."

Joel Fisch, Director, Intel Capital/Israel, Digital
Home Investments and a Jungo investor said, "Following
our initial investment, Intel and Jungo joined forces
to bring Linux-based solutions to the embedded gateway
market. Jungo and Intel both continue to derive great
value from this long-standing relationship which has
served both parties well for the past five years.
Intel Capital has supported Jungo in its financing
rounds and is pleased to see Jungo become part of NDS,
a great company with which Intel works closely."