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 secured contracts to upgrade existing IPTV headends to MPEG-4 AVC compression technology. The contracts were awarded by triple play pioneers that previously deployed MPEG-2 technology. The upgrades represent the third phase of new technology in the rapidly growing IPTV market that originally deployed MPEG-2 over ATM, followed by MPEG-2 over IP, and now MPEG-4 AVC over IP. The robust architecture of Tut Systems' Astria content processor (CP) has enabled a seamless and cost-effective transition between each stage, all from a single platform.

The companies upgrading to MPEG-4 AVC include: Allendale Communications of Allendale, MI; Consolidated Communications of Mattoon, IL; MBO Corporation/MBO Video of Mannford, OK; and, as previously announced, Iowa Network Services of Des Moines, IA. The four companies will deliver an average of more than 130 channels of broadcast IPTV services utilizing Tut Systems' Astria CP with its market-leading MPEG-4 AVC encoding and transcoding solutions.

"Our MPEG-4 AVC headend will deliver improved picture quality while significantly lowering the bandwidth required to deliver standard and high definition video channels over our copper wires," said Mike Osborne, General Manager of Allendale Communications. "In the end, this will increase our revenues for our Digital TV service by delivering more channels per home, and a wider range of service offerings per customer."

"Consolidated's successful Digital Video Services (DVS) in Illinois was built around MPEG-2 technology from Tut Systems," stated Consolidated Communications' Vice President, Network Engineering, Tom White. "As we looked to invest in our IPTV infrastructure to offer High Definition, Digital Video Recording, and other high end services, Tut Systems' efficient and cost effective MPEG-4 AVC transcoding solution led us to select them for our next investment in IPTV technology."

Tut Systems Inc. (Nasdaq: TUTS)