The deal unites two companies that have collaborated to produce one of the most advanced digital video solutions available worldwide. The introduction of advanced digital video encoding has the potential to revolutionize the video industry. With up to 50 per cent bit rate savings compared to MPEG-2, advanced digital video compression technologies are a compelling choice for service providers looking to roll out advanced interactive and high-definition television (HDTV) programming and reduce the cost of delivering standard- definition programming.

"This acquisition cements the two-year, synergistic relationship Scientific-Atlanta has enjoyed with UB Video and presents the industry with a powerful, proven, advanced digital video compression solution that offers flexibility for future network growth. This combination will provide significant benefits to our customers worldwide as they roll out new and advanced standard- and high-definition programming services to satisfy consumer demand," said Scientific-Atlanta, Inc vice president and general manager Digital Media Networks Dean Rockwell.

"Broadcasters and service providers alike are looking for ways to deliver high-performance, high-quality video, and the market for this need is expanding at an accelerated pace. The combination of UB Video's cutting-edge software and Scientific- Atlanta's proven leadership in video delivery is a win-win technology combination, which will give service providers a world-class solution for today's complex networks," said UB Video founder Dr. Faouzi Kossentini.

Additionally, the purchase of UB Video expands Scientific-Atlanta's patented intellectual property portfolio.