Vecima Networks Inc.

Vecima Networks Inc.

October 26, 2009 09:00 ET

Vecima Terrace MDU Gateway Receives 5 Diamonds in the 2009 BGR Diamond Technology Review

VICTORIA, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2009) - Vecima Networks Inc. ("Vecima") (TSX:VCM), the Last Mile Solution® for broadband wired and wireless networks, today announced that its Terrace MDU Gateway has received a 5 Diamond rating in this years BGR Diamond Technology Review. Additionally, Vecima's Terrace QAM Hospitality Gateway has received a 4 Diamond rating. Scores of 3 or above are considered outstanding and reflect a very positive opinion from the panel.

"Vecima Networks' Terrace MDU gateway garnered a stellar response from the Diamond Technology Reviews judges who reviewed it," Laura Hamilton, editor-in-chief at BGR, says. "They pointed out that application in the MDU and hospitality arena makes a lot of sense because it avoids the large upfront cash outlays and operational complexities associated with providing digital terminal adapters for every unit or TV set in the MDU, campus, hotel or hospital."

"The Diamonds panelists who reviewed Vecima Networks' Terrace QAM hospitality gateway gave it excellent scores and described it as having the ability to solve some huge problems that exist for cable operators looking to expand their reach into hotels. Given that the Terrace QAM product uses the existing CableCARD standard to solve the problem of bulk decryption, the judges saw it as a great solution that could help open up a market that was previously very difficult -- even impossible in some cases -- to enter," Hamilton says.

About the Terrace MDU Gateway
The Terrace MDU gateway is a multi-channel MDU gateway designed to reclaim analog bandwidth all the way to the outer edge of the cable network including multi-dwelling units or household service groups. Terrace enables the transition to all-digital operation across a cable operator's entire network, maximizing the value of existing infrastructure by dramatically expanding high quality digital services while preserving basic analog cable services to subscribers. Utilizing breakthrough technology, Terrace tunes and demodulates up to 16 QAM channels, decrypts and MPEG decodes 82 digital programs, and outputs 82 NTSC modulated analog video channels.

In the context of MDUs, Terrace allows MSOs to maintain and expand cable services to valued analog customers. Terrace reduces MSO capital and operational expense by eliminating the need to deploy excessive volumes of DTAs and set top boxes to convert digital signals into analog format. Traditionally, this type of conversion was done at the headend whereas Terrace does this conversion at the curb. Basic televisions will then be able to access the recreated multichannel service without the need for a DTA or set-top-box. This provides incredible leverage to MSOs to reduce churn rate and continue generating new revenue as the all-digital transition matures and remains seamless to customers.

Terrace offers the option to do ad insertion at the MDU. This becomes an invaluable potential source of revenue to MSOs and MDU operators, as this feature can easily be monetized for increasing profit margins (e.g. camera surveillance, paid advertising, community channel, etc.). Terrace is easy to install and maintain and allows effortless access to cable technicians.

The Terrace provides a single point of control for remote management of all services running through the unit and involves minimal installation (single wire in, single wire out) for main service plus 3 auxiliary ports for local content insertion.

About the Terrace QAM Hospitality Gateway
The Terrace QAM Hospitality Gateway is a multi-channel QAM to QAM transcryptor for use in the hospitality industry. Demodulated MPEG transport streams are decrypted by CableCARDs and then re-encrypted using Pro:Idiom technology. The encrypted MPEG transport streams are re-modulated and then delivered to the desired RF channel. The Terrace QAM can demodulate up to 64 QAM carriers, decrypt both SD & HD programs, and protect with Pro:Idiom hospitality encryption.

Terrace QAM is designed to provide cable system operators with market leading technology delivering both High Definition (HD) and Standard Definition (SD) digital video streams in a secure format connecting directly to newer flat panel TVs, eliminating the need for an additional Digital Set Top Box. The result is a cleaner and more reliable installation offering a broader range of video services and a simplified user experience. This new technology is highly desired by the hospitality industry, hospitals, schools, universities and other institutions because it streamlines infrastructure requirements and reduces costs.

The Terrace QAM removes the encryption standard barrier between cable and hospitality networks by converting the cable encryption standards to Pro:Idiom hospitality encryption, thus opening up the hospitality sector to cable MSOs at a modest cost. The fact that Terrace QAM converts the encryption to the Pro:Idiom standard will appeal to hotel operators who have deployed vast quantities of Pro:Idiom ready HD flat panels or are considering an investment in Pro:Idiom enabled televisions.

The Terrace QAM offers superior flexibility via its ability to demodulate up to 64 QAM channels, support up to 10 integrated CableCARDs, and handle SD and HD programming in a single chassis.

About Vecima Networks
Vecima Networks Inc. (TSX:VCM) designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. Vecima's hardware products incorporate original embedded software to meet the complex requirements of next-generation, high-speed digital networks. Service providers use Vecima's solutions to deliver services to a converging worldwide broadband market, including what are commonly known as "triple play" (voice, video and data) and "quadruple play" (voice, video, data and wireless) services. Vecima's solutions allow service providers to rapidly and cost-effectively bridge the final network segment that connects the system directly to end users, commonly referred to as "the last mile", by overcoming the bottleneck resulting from insufficient carrying capacity in legacy, last mile infrastructures. Vecima's products are directed at two principal markets: Converged Wired Solutions and Broadband Wireless. The Company has also developed, and continues to focus on developing, products to address emerging markets such as Voice over Internet Protocol, fibre to the home and IP video.

Forward-Looking Statements
Certain statements in this news release may constitute forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements are generally identified by the use of such words as "may", "will", "expect", "believe", "plan", "intend" and other similar terminology. These statements reflect Vecima's current expectations regarding future events and operating performance and speak only as of the date of this news release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors including, but not limited to, the factors discussed under "Risk Factors" in the Company's Annual Report dated September 28, 2009 available on SEDAR (, could cause actual results to differ materially from the results discussed in the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances.

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