Offering Strengthens Solution for Broadcast and DTV over Broadband

September 9, 2004 (Herzliya, Israel) – VCON (Euronext- Nouveau Marché -ISIN CODE: IL 00 108 30540), a worldwide leader in audio and videoconferencing solutions, and Ninelanes, Inc. a leading provider of solutions for A/V services over broadband networks, today announced a partnership agreement to integrate VCON’s video telephony solution into their Sedici set-top box, the world’s first programmable, triple-play IP STB. The Sedici provides VOD, IPTV, VoIP and IP Video Phone functionalities. The addition of SMPTE VC-1 will strengthen the Ninelanes solution for broadcast and digital TV over broadband solution and enable early operator adoption of this emerging standard.

The Sedici is a multi-codec, multi-function IP STB that supports Video-On-Demand (VOD) with trick play, IPTV, Voice over IP and IP Videophone functionalities. The addition of VCON’s IP videophone functionality adds to an impressive list, which currently includes support for MPEG-1/2/4, VP4/5/6, Windows Media 9 Series and numerous Codecs. The Sedici also supports H.323 signaling protocol and H.263 video CODEC for its IP videophone function.

“Ninelanes is excited to become the first OEM to bring VC-1 to the market,” said Woocheoul Shin, CEO, Ninelanes, Inc. “We chose a programmable platform for our Sedici IP STB to do exactly this – to support ALL Codecs and all value-added services the moment they are available. VCON’s video telephony functions bring enhanced features to our IP STB, changing the way media is delivered and consumed over broadband. We are proud to be on the forefront of solution providers.”

“The SEDICI integrated set-top box by NineLanes reflects the adaptability of VCON’s video telephony technology to multiple platform types”, explained Danny On, VP Technology Alliances and OEM, VCON. He added, “We are excited to have our technology integrated into a mature market STB that will bring true video telephony to the consumer market.”

See a live demo of the Sedici IP STB at the Ninelanes booth at (4.267) during the IBC2004 Exhibition at Amsterdam’s RAI from 1 -14 September, 2004

About NineLanes, Inc.

Ninelanes is a leading solution provider of IP STB fulfilling necessary market needs for high-quality end user experience of TV-centric services in IP-based networks. Sedici, the cornerstone of the Ninelanes’s IP-STB solution, is an open-programmable box suitable to the multi-application environment for creation and rollout of profitable TV services. Ninelanes delivers an optimized combination of software, set-top boxes, and professional services, proven to satisfy service providers’ need for a stable and future-proof solution. Through the established partnerships with leading industry companies, Ninelanes can offer the best customized solution in a timely and reliable manner. For more information, please visit www.ninelanes.tv

About VCON

VCON develops and manufactures a variety of conferencing solutions that enable seamless communication and collaboration using all forms of interactive media. The company’s award-winning technology ensures the highest audio and video performance for organizations worldwide. VCON’s meeting and collaboration solutions include desktop and group videoconferencing products, audio conferencing products, data conferencing products and management systems. The company markets its products and services through a network of reseller partners, OEMS and value-added resellers around the world. VCON has worldwide headquarters in Israel and regional headquarters in Munich, Austin and Beijing. VCON is publicly traded on Euronext (Euronext- Nouveau Marché -ISIN CODE: IL 00 108 30540).