Vecast Inc. Successfully Developed “Jumping Frequency?Technology
 <Summary> Company successfully developed “Jumping Frequency? a cable modem based technology, which provides new opportunities for the development of bi-directional HFC network

   Beijing, China-May 11,2005- Vecast Inc., a leader in China digital TV industry, announced today that it has successfully completed the “Jumping Frequency?technology, a cable modem based technology. This new technology will dramatically increase user’s bandwidth over bi-directional HFC network.

   Compare with the current cable modem technology which works on single frequency, the biggest advantage of “Jumping Frequency?is that it provides the users with the flexibility between several down frequencies. Without changing its present physical network, Cable TV network companies can enlarge their user’s bandwidth directly by adopting this new technology. Combined with the latest video & audio coding technologies, more IP TV programs will be broadcasted because the bandwidth requirement for a channel will be efficiently compressed to 1/6 of DVB-C or 1/36 of analog TV.

    Several Cable TV service providers showed great interests in “Jumping Frequency?technology. It is anticipated that this technology will speed up the transition of digital TV to IPTV and bring new opportunities to the development of bi-directional HFC network. It surely will boost Vecast’s sales in cable modem and IP Set Top Box as well as the development in IPTV through technology licensing.

    “Jumping Frequency technology will revolutionize the digital cable TV industry.?said George Wu, Chairman & CEO of Vecast Inc. “Before HDTV blooms in China, whether to adapt DVB-C or IPTV, “Three In One?is the utmost solution when facing the market, price acceptance, technical advancement and service support capability.  “Jumping Frequency?technology completely solves the bottle-neck of developing digital TV over HFC network in the technical and cost obstacles?

     The company’s sales in the first quarter of 2005 equals the total sales in whole year of 2004. Sales in the second quarter keeps rising pro rata. It is estimated that total sales of 2005 will reach 10 million US dollars or more, a 1000% increase compared to 2004.

** ”Three In One?refers to a unique Vecast’s end user’s product that combines VoIP, Broadband Internet and CATV services over HFC network.**

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