SAN MATEO, Calif. -- MatrixStream Technologies, Inc., will be demonstrating at CES the world’s first H.264 AVC (advance video codec) Video on Demand and IPTV Set Top Box (STB) and PC Player capable of the highest of high definition(HD) signal formats with 1080 vertical pixels by 1920 horizontal pixels.

MatrixStream’s 1020HD STB will match and even exceed broadcast and satellite quality video over anybroadband network the same way that VoIP can be used over any broadband connection. Unlike most IPTV and Video on Demand (VOD) solutions on the market today, which are bogged down bybroadband bandwidth congestion and integration issues which leads lengthy download periods or low qualityInternet videos, proprietary MatrixStream technology leverages proprietary H.264 end-to-end solution, allowingviewers to watch videos in DVD or HD over any best effort broadband; capable of instant VOD, streamingDVD-quality video in real time.

Simply plug one end of the STB into a TV set and the other into any broadband connection, and then watchVideo on Demand and IP broadcast TV in DVD or HD quality. With the easy-to-use remote control in hand,end users will be able to access an ever-increasing range of content and channels from around the world.Features to be included are friendly interactive menus, and e-commerce capabilities tied to MatrixStream’sdynamic advertising management (DAM) technology, which targets advertising based on individual user’spreferences and interests.

MatrixStream’s high-end, affordable (price yet to be determined) STB in conjunction with the complete end-toendMatrixStream IPTV/VOD backend solution is engineered to work over any best effort broadband networkwith or without quality of service (QoS) and thus can be utilized to target the entire global broadband market,currently standing at just over 200 million broadband users worldwide. MatrixStream’s turnkey plug-n-playbackend solution is fully integrated with IP STB and PC viewing clients which enable IPTV operators to deployan IPTV service complete with billing management, subscriber management, channel management and digitalrights management.

MatrixStream will be making the 1020HD available for trials in late January 2006 with a consumer editionscheduled for production by the end of the first quarter of 2006. In addition to its STB efforts, MatrixStreamwill be also launching its IMX1100 PC Player in late January 2006 from a client’s website, “Movie 99”(www.movie99.tv). The PC Player will feature over 300 free channels from around the world and 150 freeDVD and HD quality movie clips.

MatrixStream Technologies Inc.