Press Release

• Espial® Evo™ fully integrated with i3’s low-cost Mood 100 set-top boxes

IBC2005 - Amsterdam, September 8th, 2005- i3 and Espial have integrated the Espial Evo client middleware (EPG, VOD, Portal, etc) in i3 IP set-top boxes. Together they can now provide a fully integrated and interoperable middleware set-top solution for low-cost IPTV-applications. The solution is ready-to-deploy and designed to highly reduce operators’ time-to-market. i3 and Espial cooperation has been formalized in a signed strategic partnership agreement.

“i3 and Espial are joining forces to provide the most cost-optimized and high performance IP TV solution on the market,” says Chris Chalkitis, i3 micro technology CTO. “The combined unique capabilities of i3 set-top boxes and Espial middleware are going to set a benchmark for the industry.”

Unparalleled price/performance
The integration of Espial Evo and i3 IP set-top boxes guarantees operators a level of performance and personalization unparalleled in the IPTV market. The Beyond Brandable™ and intuitive high-speed user interface and cost-optimized design with a small memory footprint, makes it possible to achieve a high-quality user experience at a much lower cost than before.

“Global operators and set-top box manufacturers want a feature-rich, low-cost solution without compromising the consumer user interface experience,” said Ella Mar, Senior Vice President, Operations, “Partnering with i3 provides a robust, turnkey solution for operators that reduces risk and overall time to IPTV service revenue.”

Advanced technology and robust designs
The Mood™ product portfolio consists of full feature IP set-top boxes (STB) for advanced IP streaming media and Internet services, web browsing and e-mail. Mood STB are cost optimized and high performance, allowing service providers to offer a wide range of interactive IP services on existing TV and audio equipment. i3 STB will be Espial’s reference design platform for IP set-top boxes.

i3’s Mood™ 100 series of STBs are low-cost but with the performance and features expected only in more advanced products, including plug & play installation, DVD quality viewing, fast channel switching, flexible SmartCard support and a built-in web browser.

Espial Evo provides an unparalleled degree of personalization and brand-ability enabling the ease of creation of differentiated, revenue–generating services enabling operators to reach and own their subscribers. Leveraging the Espial Evo application framework, operators have a client environment that can extend and grow with new applications and services. Espial Evo's unique architecture means that operators can leverage the Evo Framework and focus on delivering differentiated, revenue-generating services.

Espial and i3 will be showcasing the joint solution at IBC 2005, from September 9th to 13th in Amsterdam at Espial’s stand 4.374 and i3’s stand 4.350.

For more information, please contact:
Leif Björklund
VP Business Development

i3 micro

+46 8 506 388 00

lbj@i3micro.com

Meredith Dundas

Market Communications Manager
Espial
+1 613-230-4770 x 1142
mdundas@espial.com

About Espial
Espial is a leading provider of client applications and middleware for set-top boxes and consumer electronic devices. Espial applications and technologies include Video On Demand, Electronic Program Guides, User Settings Management, Interactive Content Portals, and Web browsing. The company is the recipient of the Deloitte and Touche 'Fast 500' top companies in North America, two years running. Espial software is deployed and accredited for more than 100 consumer designs such as Motorola, Siemens, Sumitomo Electric Networks, Thomson, Philips, LodgeNet, OnCommand, S-Net Systems, and i3Micro Technologies. Espial can be found on the web at www.espial.com.

About i3 micro technology

i3 designs and delivers premier IP customer premise equipment (CPE) for advanced triple play services: Internet access, Voice over IP, IP-TV and on-demand entertainment. i3’s comprehensive product portfolio of IP Residential Gateways, Set-top boxes and related management applications, provides service providers with unprecedented return on investment – delivering new service revenues and impressive cost savings over the lifetime of the product. i3 micro technology was established in 1997 and is headquartered in Kista, Sweden with sales office in Paris and U.S. subsidiary in Seattle. For more information, please visit www.i3micro.com