LAKE OSWEGO, Ore. -- VideoTele.com, a division of Tut Systems, Inc., (Nasdaq: TUTS), today announced that PCCW will deliver Pay-TV services using VideoTele.com’s Astria® digital headend platform.

PCCW selected VideoTele.com’s Astria content processor solution for delivering DVD-quality TV channels over its broadband network, which has the capability to reach 95% of all households and all major business areas in Hong Kong.

PCCW’s network supports one of the largest deployments of DSL lines in the world. With a broadband retail customer base of 480,000 subscribers, the company expects to sign up to 20,000 new subscribers a month to its now Broadband TV service.

“VideoTele.com’s digital headend solution provides the flexibility to deliver IP-based digital TV services over multiple types of networks,” said Belinda Chan, VP, Operations & Technology. “In the evaluation phase, PCCW required a digital headend that met certain criteria, including: a proven track record in the field; the ability to scale as our subscriber base grows; and being capable of delivering high-quality TV channels that allow us to offer customers a compelling package of world class entertainment. VideoTele.com’s Astria platform best met these requirements.”

"The PCCW decision to deploy the Astria video platform demonstrates PCCW’s leadership position in offering consumers an integrated package of data, voice and digital entertainment services," said Sal D’Auria, Tut Systems’ CEO and president. "VideoTele.com is excited about deploying its digital TV platform with its first incumbent telecommunications provider in Asia. The Astria platform is the industry’s leading choice for delivering high-quality digital TV over broadband access networks, and continues to prove itself the most reliable and flexible solution available."

PCCW Ltd.

VideoTele.com Inc.