SOURCE: Thomson

February 17, 2006 12:58 ET

Press Release - EMBARGOED Until Sunday 19 February 2006, 10 am CET Operator Tata Sky Chooses Thomson Set-Top Boxes for New Digital TV Service

Landmark Agreement Marks Thomson's Entry Into the Indian Satellite TV Market

PARIS -- (MARKET WIRE) -- February 17, 2006 -- Thomson (Euronext Paris:18453) (NYSE: TMS) and Tata Sky, a joint venture between the TATA Group and STAR, announces an agreement for the delivery of digital set-top boxes to support the launch of Tata Sky's new Direct-to-Home (DTH) satellite television service, T-Sky, across India mid 2006. Under the agreement, Thomson, world leader in set- top technology, will become Tata Sky's preferred set-top box (STB) technology partner, reinforcing Thomson's Two-Year Plan commitment to broaden its client base globally.

Major New Force in the Indian TV Market

Tata Sky is currently investing in building a high quality digital TV infrastructure which will provide a superior television viewing experience to Indian households. The service will enhance the choice for viewers looking for the best of pay television services in the country. Tata Sky aims to become India's largest digital television platform, offering consumers a wide array of programming choices with interactive features and superior picture and sound quality.

Commenting on the agreement, Vikram Kaushik, CEO, Tata Sky Ltd. said, "Our partnership with Thomson represents an important milestone in the development of our business. It sets the stage for the launch of our DTH service as we get ready to unveil it in mid 2006."

Vikram Kaushik added "Selecting Thomson as a preferred partner gives us proven high quality customer premises equipment, through which we can deliver our programming and associated interactive services. This agreement is an endorsement of our commitment to provide state-of-the-art DTH services in India and offer customers the best satellite TV services available. Our DTH service will completely redefine the television viewing experience in India and our landmark agreement with Thomson takes us a step closer to this goal."

"As the largest and most exciting new DTH TV project in the world, we are very proud to have been selected as a key supplier by Tata Sky," said Koen van Driel, Senior Vice President, Satellite, Terrestrial & Cable Business Unit, Thomson. "In choosing Thomson, Tata Sky has demonstrated its confidence in the high quality of our set-top box products, our ability to deliver a customized solution in a relatively short timeframe and our global development and support network."

New Set-Top Box Will be Manufactured in India

To support Thomson's first entry into the Indian DTH Satellite TV market, Thomson will manufacture and provide countrywide after-sales service and support network for Tata Sky customers.

In addition to meeting India's BIS (Bureau of Indian Standards) specifications, the set-top box will have a feature-rich design that will enable Tata Sky to deliver multiple programming, pricing packages and interactive services to its customers.

The digital technology service of Tata Sky will eliminate many recurring problems that consumers face while watching television today. The DTH satellite signal will be uninterrupted by power cuts and cable cutting, thus eliminating instances of service downtime. Also, Tata Sky service will have fixed channel positions and pre-tuned audio levels, which will improve the visual and audio quality of broadcast.

Certain statements in this press release, including any discussion of management expectations for future periods, constitute "forward-looking statements" within the meaning of the "safe harbor" of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements due to changes in global economic and business conditions, consumer electronics markets, and regulatory factors. More detailed information on the potential factors that could affect the financial results of Thomson is contained in Thomson's filings with the U.S. Securities and Exchange Commission.

About Tata Sky Tata Sky Ltd., a joint venture of TATA and STAR, is committed to build a state-of-the-art Digital infrastructure for Pay Television in India. Tata Sky plans to introduce a nationwide Direct-to- Home (DTH) service that would allow it to reach every Indian home, however remote it may be. The service plans to offer its subscribers the best of cable channels, new innovative programming and interactive services.

About Thomson - Partner to the Media & Entertainment Industries Thomson (Euronext Paris: 18453; NYSE: TMS) provides services, systems and equipment, and technology to help its Media & Entertainment clients - content creators, content distributors and users of its technology - realize their business goals and optimize their performance in a rapidly changing technology environment. The Group is the preferred partner to the Media & Entertainment Industries through its Technicolor, Grass Valley, RCA and Thomson brands. For more information: www.thomson.net.

Thomson's Access Platforms and Gateways (AP&G) activity, part of the company's systems and equipment division, is a leading supplier of digital entertainment receivers to the world's major satellite and terrestrial broadcasters, cable operators and telecom service providers. It offers a full range of digital set-top boxes, phones, broadband modems and gateways with modular VoIP, IPTV and wireless capabilities. Through its Next Generation Networks business unit, Cirpack, it is also one of the leading suppliers of softswitch solutions to migrate telecom infrastructures to NGN (Next Generation Networks) and IMS (IP Multimedia Subsystem) enabling massive deployments of broadband telephony and IP Centrex, for instance. Products are marketed under the RCA, THOMSON, SpeedTouch and CIRPACK brands. You can find more information on AP&G's products at www.thomson- broadband.com and www.cirpack.com

+-------------------------+-------------------+--------------------+
|Press Relations          |                   |                    |
+-------------------------+-------------------+--------------------+
|Martine Esquirou         |  +33 1 41 86 58 51|martine.esquirou@tho|
|                         |                   |mson.net            |
+-------------------------+-------------------+--------------------+
|Julie Dardelet           |  +33 1 41 86 65 24|julie.dardelet@thoms|
|                         |                   |on.net              |
+-------------------------+-------------------+--------------------+
|Marie-Vincente Pasdeloup |  +33 1 41 86 61 13|Marie-vincente.pasde|
|                         |                   |loup@thomson.net    |
+-------------------------+-------------------+--------------------+
|Access Platforms &       |                   |                    |
|Gateways                 |                   |                    |
+-------------------------+-------------------+--------------------+
|Brenda Clery             |  +33 6 83 30 57 57|brenda.clery@thomson|
|                         |                   |.net                |
+-------------------------+-------------------+--------------------+
|Claudine Cecille         |  +33 1 41 86 67 44|claudine.cecille@tho|
|                         |                   |mson.net            |
+-------------------------+-------------------+--------------------+
|Investor Relations       |                   |                    |
+-------------------------+-------------------+--------------------+
|Séverine Camp            |  +33 1 41 86 57 23|severine.camp@thomso|
|                         |                   |n.net               |
+-------------------------+-------------------+--------------------+
|Marie Boidot             |  +33 1 41 86 51 00|marie.boidot@thomson|
|                         |                   |.net                |
+-------------------------+-------------------+--------------------+
|Laurent Sfaxi            |  +33 1 41 86 58 83|laurent.sfaxi@thomso|
|                         |                   |n.net               |
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