Modulus Video Licenses H.264 Technology From LSI Logic To Develop Next Generation Broadcast Video Compression Systems

Sunnyvale and Milpitas, California - April 14, 2004. Modulus Video, Inc., a provider of broadcast quality H.264 / MPEG-4.10 AVC video compression systems for high definition (HD) and standard definition (SD) television, announced today an agreement to license pioneering VLE4000/VLD4000 FPGA-based H.264 video compression/decompression and analysis technology from LSI Logic Corporation (NYSE: LSI), a leader in innovative digital media processing technologies. The companies will be demonstrating H.264 technologies at the National Association of Broadcasters (NAB) Show next week in Las Vegas, booths SU1124 (Modulus) and SU8268 (LSI Logic), and participating in the show's AIM award program.

"We are extremely pleased to announce the partnership with LSI Logic," said Mark Magee, VP Engineering of Modulus of Modulus Video. "Combining the deep broadcast systems knowledge at Modulus with technology from the leading broadcast silicon vendor gives us a significant advantage in rapidly delivering high performance standard definition and high definition compression systems for broadcast, narrowcast and video on demand applications."

"Some of the principals of Modulus Video have pioneered MPEG-2 Broadcast systems and played instrumental role in early deployments; we are pleased to see them approaching the H.264 market with the same enthusiasm and innovation," said Bob Saffari, senior director of marketing for LSI Logics Advanced Video Products. "We look forward to seeing Modulus Video build world-class H.264 based systems for the industry and accelerate the adoption of H.264."

"We are pleased to take our relationship with Modulus Video to the next step with this agreement," said Glynis Brooke senior marketing manager for LSI Logic's Advanced Video Products. "The LSI Logic H.264 technology is at the leading edge of high-performance encoding and we are extremely excited that Modulus Video has chosen us as a partner."

The Award for Innovation in Media (AIM) reflects NAB attendees' choices for groundbreaking products that display significant advancement through boosting efficiency, increasing user flexibility and creativity, and/or lowering operating costs. Product categories recognize innovations in Content Creation, Content Management, and Content Delivery.

H.264 / MPEG-4.10 AVC Expected To Be The New Standard For Digital Video
Current digital video distribution is based primarily on MPEG-2, a nearly ten year old standard that has reached its limit of video compression efficiency. H.264 / MPEG-4.10, a new and open video compression standard, was ratified in 2003 by the ITU and the MPEG. H.264 has been shown to outperform MPEG-2 by at least a factor of two, thus requiring 50% or less bandwidth or storage capacity for equivalent quality. H.264 is expected to become the dominant standard worldwide for broadcast-quality video compression across all media and formats. H.264's benefits accrue to existing broadcasters and new entrants for HD and SD applications.

About Modulus Video, Inc.
Modulus Video, Inc. is a provider of next generation high definition (HD) and standard definition (SD) video compression solutions for digital television based on the H.264 / MPEG-4.10 AVC standard. Its products include encoders and professional decoders / analyzers, 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 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; DVD mastering; and enterprise networks. Modulus is based in Sunnyvale, California and was founded in 2002. For more information, please visit www.ModulusVideo.com.

Modulus is comprised of experienced entrepreneurs and veterans of the broadcast video systems industry. Bob Wilson joined as Chairman and CEO in April 2004 from Pinnacle Systems, Inc. where he held several leadership roles including President of its Broadcast Division. Modulus was co-founded by Rob Robinett, Raj Sandhu, Mark Magee and Jean Dumouchel to provide next-generation video compression systems. Rob Robinett was co-founder and founding president of SkyStream Networks, a provider of IP video delivery systems. Raj Sandhu, an experienced investor and principal of Athena Advisors, provided seed capital and leadership. Mark Magee, VP Engineering, was the VP of Engineering at DiviCom, a leading vendor of MPEG-2 compression systems (acquired by Harmonic - Nasdaq HLIT). Jean Dumouchel, VP Software, was a Technical Director at Broadcom (Nasdaq BRCM) and a co-founder of Azuron Systems acquired by Broadcom.

About LSI Logic Corporation
LSI Logic Corporation (NYSE: LSI) is a leading designer and manufacturer of communications, consumer and storage semiconductors for applications that access, interconnect and store data, voice and video. In addition, the company supplies storage network solutions for the enterprise. LSI Logic is headquartered at 1621 Barber Lane, Milpitas, CA 95035. http://www.lsilogic.com/

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