LAKE OSWEGO, Ore. -- Tut Systems Inc. (Nasdaq: TUTS - News), an industry pioneer in enabling the delivery of next-generation data and video services over broadband networks, today announced that KPU Telecommunications selected its Astria® video headend for delivering digital TV over the City of Ketchikan's DSL network.

KPU Telecommunications, the city-owned telephone company in Ketchikan, Alaska, selected the Tut Systems digital TV platform to enable a Triple Play of voice, data and video services that it will offer to its 7000 subscribers. KPU Telecommunications plans to launch its Digital TV service on September 1, 2005; it currently offers telephone service and high-speed Internet to its business and residential customers.

"The extensive testing and evaluation process that we are required to go through as a public utility allowed us to fully comprehend the strengths of the Astria digital headend," said Van Abbott, Division Manager of KPU Telecommunications. "Tut Systems brings to the table a unique combination of video and networking skills and understands the challenges that telecommunications providers face when deploying digital TV. The Astria platform provides us with a proven, carrier-class, totally redundant system that is more than just a premium video encoder -- it supports all of the video processing functionality required to deliver a compelling and high-quality digital entertainment service over next generation networks."

KPU Telecommunications' digital TV service will consist of more than 150 channels, including national broadcast and premium TV, local channels, commercial-free digital music, pay-per-view (PPV) and video-on-demand (VOD). KPU Telecommunications plans to compete directly with General Communication Inc. (GCI), the state's largest cable operator that currently serves more than 3,700 digital TV subscribers in the city of Ketchikan.

"As a trusted provider throughout its municipality and the Ketchikan Gateway Borough, KPU Telecommunications required a solution with a track record of success and the flexibility to support advanced services such as HDTV and video on demand," said Craig Bender, VP of Marketing & Corporate Development for Tut Systems. "We look forward to helping KPU deliver a compelling suite of digital entertainment service across its community."

Tut Systems Inc.