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ZyXEL Shows Off P-3000 H.264 IPTV Set-top Box

Integration of IP Video and Digital Contents Empowers Service Providers to Profit from New Business

CeBIT, Hannover, March 11, 2005--ZyXEL Communications (TSE: 2391), world's largest DSL router provider, plans to unveil the company's first IPTV set-top box in CeBIT 2005 (Hall 15 C05). According to ZyXEL, the P-3000 adopts the latest H.264 standard, and can be customized to suite the service provider needs or deployment plans. With ZyXEL P-3000, the customers have the chance to offer more IPTV services to current and new subscribers with less bandwidth requirement.

"ZyXEL P-3000 successfully merges the versatility of broadband applications and convenience of large-screen TV viewing. The subscribers can enjoy rich media contents such as digital channels, pay-per-view, video-on-demand and streaming applications without changing their viewing habits," said Allen Lin, Manager of ZyXEL's CPE Product Business. "These contents will enable service providers to generate more revenue and to stimulate user demand for more bandwidth, allowing more competitive advantage and new profitable business models."

ZyXEL P-3000 offers a LAN port for ADSL 2/2+ Internet connectivity, in addition to standard TV interfaces. With ZyXEL P-3000, current broadband users can enjoy digital contents from service providers; and new users can take advantage of the powerful combination of the P-3000 and P-2602HW/P-2602HWL IAD for complete "Triple Play" services -- ADSL 2/2+ broadband access, WLAN, VoIP and digital television. Besides, a SMART card reader on the P-3000 front panel is fitted for digital right management of programs or e-payment debit card processing.

Since ZyXEL P-3000 conforms to the cutting-edge H.264 standard, only 1-2 Mbps of bandwidth is required for video streaming. This modest demand puts 80% of current ADSL users eligible for achieving maximum audience coverage. The P-3000 has MPEG-1/2/4 video codecs, as well as MPEG-1 Audio Layers 1 & 2, MP3, AAC, AC-3 and WMA audio codecs built-in.Better yet, the new Digital Signal Processor (DSP) allows P-3000 to add more codec capabilities through future firmware upgrades. The extensibility not only promises a customizable platform, but also the extension to the product life.

The ZyXEL P-3000 set-top box is a highly flexible hardware platform with extra features required by various video or audio services. With strong broadband expertise, ZyXEL has the ability to integrate VoIP, ADSL modem and PVR functionality on modular design to meet customer needs.

To simplify the infrastructure deployment, ZyXEL works with several leading headend providers to ensure ZyXEL P-3000's video infrastructure interoperability, and P-3000 is also flexible enough to allow customers to integrate it with middleware, live encoder, VoD server and billing systems from third parties. At last but not least, ZyXEL's exclusive Auto-Provisioning feature streamlines the deployment process to save even more.

About ZyXEL Communications
ZyXEL Communications Co. (TSE: 2391), located in Hsinchu, Taiwan, is the world's largest DSL router provider (Gartner, July 2004). ZyXEL's broad line of Internet Protocol-based (IP) networking solutions includes access multiplexors, customer premise equipment, Internet security and Wireless LAN equipment, enabling high-performance network services for SOHO, small to mid-sized businesses and service providers. ZyXEL works closely with worldwide network equipment vendors, telecommunications companies, ISPs, and other major businesses. For more information, visit the company's Website at http://www.zyxel.com.