Verimatrix Consolidates Its Commanding Lead as the Global Market Leader in IPTV Content Protection

SAN DIEGO, CA--(Marketwire - September 9, 2008) - Verimatrix, setting the standard in content security technologies that enhance the value of pay-TV networks, is proud to retain its global number one position as the most widely-deployed IPTV content protection provider for the fifth consecutive reporting period. Multimedia Research Group (MRG) released its semi-annual IPTV Market Leader Report where Verimatrix reconfirmed its strong position in each global region, largely due to its formidable partnerships with major systems integrators and equipment providers. Verimatrix is once again the only IPTV provider classified as having exceptionally strong growth prospects based on the number of tier one operator deployments, at nearly four times that of its closest competitor.

"Verimatrix maintained its place amongst the top five content protection providers in all four regions, which is remarkable in this increasingly competitive category," said Gary Schultz, president and principal analyst of MRG. "Its overall number one position and solid prospects with global tier-one operator deployments give Verimatrix a significant market share."

MRG's IPTV Market Leader Report tracks more than 80 IPTV hardware and software vendors for six product areas with a breakdown of the four regional markets -- Asia, Europe, North America and Rest of World. MRG currently excludes hospitality and video delivery services other than set-top boxes, such as PCs and mobile phones. As the chosen content security provider for several major systems integrator platforms, including Nokia Siemens Networks, Motorola, Sun, and Ericsson, Verimatrix has strong growth prospects that extend beyond its core IPTV market.

"Our focus on content security, extensive partner ecosystem and dedication to superior customer care has been our tenets to achieving success in IPTV, and MRG's analysis reinforces that success," said Tom Munro, CEO of Verimatrix. "IP technologies are enabling cost-effective and interactive services, which makes our IP-centric software-based expertise attractive in other pay-TV markets."

The award-winning Verimatrix Video Content Authority System for IPTV (VCAS™ for IPTV) is part of its 3-Dimensional Content Security approach for telecommunications carriers, service providers, content aggregators and resellers that must provide content security on their IP networks for live broadcast and Video-on-Demand IPTV services. The software-based content security solution eliminates the vulnerabilities related to smartcard-based architectures through the leverage of mature, proven two-way Internet security protocols, a Public Key Infrastructure (PKI) public/private key pair system and X.509 digital certificates. A downloadable security system is not only more secure, it enables less expensive set-top box hardware and can be updated or renewed as required to combat pirate attacks.

VCAS for IPTV has been approved by all major studios for protection of premium content as well as by all the major broadcasters including Disney, Discovery, HBO, Showtime and ESPN.

About Verimatrix

Verimatrix sets the standard for software-based content security and revenue enhancement technologies in pay-TV networks, with a global customer base of service providers. The Verimatrix Video Content Authority System (VCAS™) offers a suite of next-generation technologies that has been independently audited and ranked as the global leader in IPTV content protection. The company's 3-Dimensional Content Security approach, built around VCAS, enables secure delivery of content to multiple devices across multiple networks using multiple layers of protection techniques. Maintaining close relationships with major studios, broadcasters, industry organizations and partner ecosystem helps address the challenges facing pay-TV networks of today, and those of tomorrow. For more information, please visit www.verimatrix.com.