NDS Buys CastUp

LONDON -- NDS Group Plc, the leading provider of technology solutions for digital pay-TV, today announced the acquisition of 100% of the share capital of CastUp Inc, a leader in solutions for management and delivery of video over the Internet, for purchase price of $11.3 million in cash plus additional payments to employees and senior management. Completion is expected to occur during the first financial quarter of 2008.

CastUP Inc., through its wholly owned subsidiary in Israel, provides a robust end to end solution for acquisition, processing, distributing, serving and monetizing of rich media content over IP and, in particular, video and audio over the Internet. Customers include major TV and media companies in Israel as well as the Israeli subsidiaries of large corporations like HP, Amdocs, MTV and Blockbuster.

CastUp, a profitable and fast growing company, will provide NDS with substantial know-how and experience in online video delivery. This acquisition affords NDS access to technologies which will help its current pay TV customers expand their broadband video distribution services as well as attracting new potential customers. CastUp’s proven rich media technology will also help NDS to develop new enhanced services and applications for broadband enabled set-top boxes (hybrid STBs). CastUp will continue to operate as a separate unit within NDS under the leadership of the current management team.

Dr Abe Peled, NDS Chairman and CEO said: "We are very excited about the possibilities for new and comprehensive solutions for the delivery, management, and control of online media assets. We believe that NDS’ market-leading experience in securely delivering digital content, and our global presence will combine with CastUp’s proven technology to allow us to continue to enhance the businesses of our media and entertainment customers.” Through this important acquisition, NDS can meet the requirements of broadcasters for control, management, distribution, reporting, and monetization of their digital assets any time, anywhere and on any device. Dr Peled continued: “We are of course committed to serving all of CastUp’s current customers after the transaction closes, as well as helping the CastUp team expand their market penetration worldwide.”

NDS Ltd.