Wave Issue 9037 4/07/99 Article 12-02

***nCUBE Acquires SkyConnect to Provide Video-on-Demand
(March 17)

nCUBE announced it has reached an agreement to acquire
SkyConnect, a provider of digital video systems integration and
application software.

The combined company will possess the largest installed base of
video server systems, with more than 21,000 broadcast quality
MPEG channels installed. Worldwide, the combined company will be
#1 in near video-on-demand (nVOD), #2 in digital ad insertion,
and #1 in video-on-demand (VOD).

The combined company will focus on providing mission critical
solutions for a variety of broadcast quality digital
applications, including video-on- demand, near video-on-demand,
digital video advertising insertion, local origination, distance
learning, multi-channel advertising, and traffic and billing.
These solutions will be delivered to Telecom and Cable operators
in all vertical and geographic markets.

nCUBE and SkyConnect have been working together since mid-1998 on
video delivery solutions for customers and have determined that,
as one company, they will be better positioned to serve the
growing demand for cost- effective, reliable, end-to-end
solutions. The goal of the combined company will be to make it as
effortless as possible to deploy video-on-demand.

nCUBE offers interactive and on-demand multimedia applications
for the consumer, business, hospitality, and broadcast markets.

nCUBE's video servers are configurable to deliver in excess of
20,000 broadcast quality MPEG video streams with a single system.
Product features include support for the major network
architectures of the video market, including QAM, DVB-ASI, ATM,
ADSL, and Ethernet.

SkyConnect's expertise includes video server systems
integration, application software and user interfaces, its
understanding of CATV operating and business requirements, on-
site installation service and support, and customer training and
technical support.

While financial terms of the agreement were not disclosed, it is
expected to be finalized within 60 days.