LAKE OSWEGO, Ore. -- Tut Systems Inc. (Nasdaq: TUTS - News), an industry leader enabling the delivery of next-generation data and video services over broadband networks, today announced that it has achieved more than 100% growth in the volume of IPTV business won in 2005 compared to 2004. This achievement is a clear indication of Tut Systems' successful execution of its international growth strategy through direct and indirect channels.

In the first 10 months of 2005, Tut Systems averaged one IPTV win per month internationally and more than doubled its base of international IPTV deployments. The deployments were the result of multiple strategic reseller relationships and direct investment by Tut Systems in the EMEA and Asia Pacific regions. To date, Tut Systems has deployments in more than 18 countries across four continents.

"Tut Systems is rapidly driving its IPTV market leading position in North American into other countries across continental and eastern Europe, northern Africa, the Middle East and through the Asia Pacific Region," said Bob Noonan, Vice President of Global Sales and Customer Care for Tut Systems. "Using our proven IPTV expertise, industry-leading MPEG-4 AVC encoding/transcoding technologies and the reach of our global partners, we are actively delivering our Astria® family of products and systems integration capabilities throughout the world."

In August, Multimedia Research Group, Inc. (MRG Inc.) named Tut Systems a Leader among video headend vendors for IPTV services. Tut Systems was the only video headend vendor to secure a Leader rating for the North American and Global markets, and one of two vendors to achieve a Leader rating for the Asia Pacific market.

"Our Market Leaders Report identifies which IPTV systems and software companies are leading each of the IPTV markets globally and within the four regional markets that we track," said Bob Larribeau, MRG's Senior Analyst. "Tut Systems is the clear global leader for IPTV video headend systems in terms of channels installed today and their very strong position in the North American market, combined with recent tier 1 international reseller relationships, makes Tut Systems a force to be reckoned with on a global level."

Tut Systems Inc. (Nasdaq: TUTS)