RGB Networks, SeaChange Strategic Partnership Delivers More HDTV and Turnkey Local Advertising at Nation’s Largest Telephone Cooperative

Telco TV Booths 425 (RGB Networks) and 819 (SeaChange):

RGB Networks, the leader in network video processing, and SeaChange International (NASDAQ:SEAC), a leader in video-on-demand, IPTV and advertising systems, are already passing on to operators the benefits of their recently announced strategic partnership. The companies today announced that Horry Telephone Cooperative (HTC), the nation’s largest telephone cooperative, has deployed RGB and SeaChange products to deliver more high definition (HD) programming to its cable television subscribers and to generate new advertising revenues by inserting ads from local advertisers into its programming. HTC is the first operator to deploy the SeaChange and RGB Networks turnkey digital advertising insertion solution under the two companies’ new reseller agreement.

Since its founding in 1952, HTC has provided telephone service to the residents of Horry County, South Carolina, which includes the towns of Myrtle Beach, North Myrtle Beach and Conway. In 1983 HTC expanded its services and began offering cable television delivered via a hybrid fiber coaxial (HFC) network. HTC continually upgrades its cable network in order to offer the latest cable broadband services, including HDTV and video-on-demand (VOD).

"We face stiff competition, but by continually adding more services and ensuring a superior customer experience, we’re winning the battle,” said Tom Vitt, HTC’s Director of Marketing. "RGB Networks’ and SeaChange’s products – in particular the Broadcast Network Processor and Spot system – play critical roles in this effort, enabling us to offer more HDTV and to carry ads from local advertisers, which adds to our bottom line.”

To offer its subscribers more HD, HTC is using RGB’s multi-function Broadcast Network Processor (BNP) to deliver three HD programs in each of the 6MHz channels it has allocated to its HD service, rather than the usual two HD programs. The BNP’s advanced transrating and statistical multiplexing capabilities allow up to 50 percent more HD programs to be carried without increasing bandwidth or impacting picture quality. In combination with its seamless ad insertion capabilities, the BNP provides HTC with a complete digital video processing platform.

Local multichannel advertising is a proven revenue generator, earning U.S. cable operators more than $4.3 billion in 2008. Fortunately for HTC and other small operators, RGB’s BNP combined with SeaChange’s Spot system perform seamless, automated ad insertion in addition to several other capabilities. The BNP’s simple licensing model allows operators to immediately deploy it for a variety of applications – from grooming channel line-ups to delivering more HD – and to then implement local ad insertion when ready. Working in concert with the BNP, SeaChange Spot automates local digital multichannel advertising insertion without the need for operator intervention.

In addition to the BNP, HTC has also deployed RGB’s Simulcast Edge Processor (SEP) and Modular Media Converter (MMC) products in its cable network as part of its comprehensive network upgrade.

"Delivering more HDTV and generating additional ad revenue are key for video service providers of all sizes, and HTC is able to accomplish both goals with a single product – RGB’s Broadcast Network Processor,” said Lou Mastrocola, Vice President, Americas Sales for RGB Networks. "HTC and other service providers – both large and small – are increasingly choosing the BNP for their mission-critical HD, ad insertion and other digital video applications because of its proven performance, cost-effectiveness and excellent video quality.”

"HTC’s deployment of a turnkey SeaChange and RGB solution to begin realizing new revenues through local ad insertion underscores precisely the opportunities we aimed to create under our reseller agreement,” said Yvette Kanouff, Chief Strategy Officer, SeaChange. "SeaChange and RGB Networks have delivered a comprehensive solution to help operators open new revenue streams in a multibillion dollar market.”

RGB and SeaChange will demonstrate the turnkey advertising system during TelcoTV in Orlando, Nov. 10-12 at booths 425 and 819, respectively.

About RGB’s Products

RGB Networks offers a comprehensive suite of advanced digital video networking products built on its unique Video Intelligence Architecture™ (VIA). The exceptional stream processing density of RGB’s products, combined with advanced processing capabilities, including transrating, statistical remultiplexing, digital overlay and ad insertion, modulation and digital-to-analog decoding enable RGB’s products to dramatically reduce the cost and complexity of delivering increasingly targeted, personalized and on-demand video services.

RGB’s product line includes the Broadcast Network Processor (BNP) for targeted digital ad insertion, transrating and grooming; the Dynamic Bandwidth Manager (DBM), which enables up to 50 percent more VOD content to be delivered without increasing bandwidth; the Modular Video Processor, a complete IPTV solution in a carrier-class chassis; the Universal Scalable Modulator (USM), the industry’s highest density edge QAM; the Modular Media Converter (MMC), for high-density ASI-to-GigE conversion; and the Simulcast Edge Processor (SEP) for edge decoding and analog modulation to implement digital simulcast architectures.

About HTC

HTC, Inc. is the nation's largest telephone cooperative and the 18th largest telephone company, serving the more than 200,000 residents of Horry County, South Carolina. Founded in 1952, HTC celebrates more than 55 years of service to the community as a local communications leader. HTC offers local telephone service, long distance, Digital Wireless, Digital Cable, High-Speed Internet Access, and advanced business services such as Remote Recovery Services, Local Area Network (LAN) and Wide Area Network (WAN) design, firewall and Virtual Private Network (VPN) security. HTC also provides Home Security and Fiber to the Home technology called HTC Bluewave, a state-of-the-art fiber optic network that delivers unparalleled bandwidth for extremely high-speed Internet access and data transmittal, 100 percent digital cable TV video, and traditional voice service through a single delivery point to a customer’s home.

About RGB Networks

RGB Networks is revolutionizing video, delivering leading-edge video processing solutions that address the complexities of the changing video delivery model. With advanced solutions for bandwidth optimization, content repurposing and addressable advertising, RGB’s products enable operators to deliver the next generation of highly personalized video services, which are relevant to individual subscribers and delivered anytime to any device. The company’s products are based on its unique Video Intelligence Architecture™ (VIA), enabling them to process an unprecedented number of video streams with the highest video quality. RGB’s scalable solutions dramatically reduce the cost to deliver both broadcast and unicast services, and help operators maximize their existing network infrastructure. More than 7,000 RGB products are deployed in the field by over 170 service providers in 25 countries worldwide. Learn more at www.rgbnetworks.com.

About SeaChange

SeaChange International is a leading provider of software applications, services and integrated solutions for video-on-demand (VOD), digital advertising, and content acquisition monetization and management. Its powerful open VOD and advertising software and scalable hardware enable cable and telco operators, as well as broadcasters, to provide new on-demand services and to gain greater efficiencies in advertising and content delivery. With its Emmy Award-winning and patented technology, thousands of SeaChange deployments are helping broadband, broadcast and satellite television companies to streamline operations, expand services and increase revenues. Headquartered in Acton, Massachusetts, SeaChange has product development, support and sales offices around the world. Visit www.schange.com.