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May 12, 2004

KUDELSKI GROUP'S NAGRAVISION PAY TV SYSTEM SELECTED BY TVA, BRAZIL'S SECOND LARGEST CABLE TV OPERATOR

Cheseaux, May 12, 2004 – Nagravision, a Kudelski Group company and the world’s leading independent provider of open conditional access system and related technology solutions for digital subscription TV, announced today that TVA, Brazil’s second largest cable operator, has selected its Conditional Access system and its Livewire Tsunami STB software technology for TVA’s new digital platform.

In operation since 1991 with about 300,000 pay TV subscribers and 20,000 broadband internet subscribers, TVA is the first Brazilian Pay TV operator. Boasting state-of-the-art cable network technology, TVA has the flexibility to operate with two technologies: cable and MMDS, for both television and broadband Internet service. It is present in six of Brazil’s largest and most economically important cities, including São Paulo, Rio de Janeiro and Curitiba. TVA is a division of the Abril Group, one of Latin America’s largest communications groups, with integrated operations across a variety of media, supplying magazines, textbooks, broadband Internet, music and pay TV.

TVA plans to launch before the end of the year a basic platform and migrate aggressively their entire subscriber base in 2005. The new digital platform features Nagravision latest conditional access system and smart card technology, Livewire’s Tsunami STB software and EPG (Electronic Program Guide) allowing TVA subscribers to view with innovative navigation capabilities programs by time, genre and channel for a full seven days in advance. The entire system will be integrated and installed under the management of Nagravision systems integration team and will include a digital cable headend system from Harmonic.

“Nagravision is very pleased with the selection of our conditional access system and related technologies for this project. Our experience in building end-to-end cable systems, combined with our understanding and outstanding track record of optimizing cable business models, places us in a position to help TVA to cost-effectively develop its new digital TV platform. We will insure that the collaboration between TVA and Nagravision will enable TVA to become one of the most advanced and successful platforms in Brazil,” says Pierre Roy, COO of Nagravision.

”TVA, as the first Brazilian Pay TV company, has constantly expanded its activities to become a multiservice telecommunications provider in harmony with the converging media trend. The key to our continued success has been selecting suppliers that are able to grow with us and provide products that answer our technical requirements for today, yet are scaleable for future needs. In selecting Nagravision we were able to secure such a product. Given Nagravision previous experience working with leading Pay TV operators worldwide, we were comfortable with them as a reliable partner, capable of delivering products and services in a timely manner.” , says Leila Lória, TVA Superintendent.

Nagravision has continued to take great bounds ahead of the competition with regards to security and authentication. Security elements powered by Nagravision provide user identification, authentication and signal decryption, in addition to a secure means of processing transactions and exchanging and storing data. Turn-key software is adapted to meet each operator’s requirements and security elements are able to be branded and personalized to an individual subscriber level if required.

Livewire, a Kudelski Group company, provides its Tsunami Set-Top Box software technology to Pay Television operators and Set-Top Box providers worldwide. Tsunami software is the most advanced, portable and cost effective solution for complete set-top box deployment, focusing on revenue generation for the operator, and increasing the value of the digital TV experience in the subscriber’s home. Tsunami Set-Top software is in deployment today in Europe, Asia, and America.

About Nagravision
Nagravision is the world’s leading independent supplier of open conditional access, advanced management tools and integrated solutions for cable, satellite, terrestrial and MMDS, FTTH and xDSL operators. These advanced solutions provide digital TV and content providers with the tools to operate and manage a wide range of pay TV offerings including pay-per-view, on-demand and interactive applications on multiple digital platforms. Nagravision digital and analog conditional access technologies are currently being utilized by more then 120 leading operators worldwide representing over 40 million digital and analog subscribers.

Nagravision is a division of the Switzerland-based Kudelski Group and has offices in the United States, Singapore, Shanghai, India, Brazil, Spain, the UK and Switzerland. The Kudelski Group (SWX ""KUD"") is part of the Swiss Market Index, which includes the top 26 blue chip companies in Switzerland. Kudelski stock is also listed on the Morgan Stanley Capital International Index. See http://www.nagra.com for more information.

Contacts:

Tom Wirth
VP Sales & Mktg, The Americas
+1.310.524 42 05
[email protected]

Ivan Schnider
Marketing & Communications Manager
+41 21 732 09 40
[email protected]