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February 24, 2009

NAGRAVISION AND MEDIASET EXTEND CONTRACT TO SUPPORT GROWTH OF ITALY'S DIGITAL TERRESTRIAL PAY TV BUSINESS

  • Extension of the contract
  • Flexible CAS solution supports multiple means of Pay TV revenue including mix of rechargeable smartcards with monthly subscription services
  • Mediaset and Nagravision working together to support growth of DTT Pay TV business during analog switch-off

Cheseaux, Switzerland – February 24, 2009 – The Kudelski Group (SWX:KUD) today announced that Mediaset has extended its contract with Nagravision. The renewed partnership demonstrates the companies continued success in the Italian digital terrestrial television (DTT) Pay TV business. At present, Mediaset Premium has over 2.7 million active users representing more than 400 million Euros revenue in 2008. The flexibility of Nagravision's conditional access solution allows Mediaset to support current and new business models.

"Nagravision has been a valuable partner since 2004. They have helped us to grow our Pay TV business with a clever mix of technology know-how and market experience," said Franco Ricci Managing Director at RTI. "As we continue to offer new services, we are confident that Nagravision's solution will exceed our expectations and provide us with ever more ways to satisfy our customers' demands."

Using Nagravision's conditional access system configured for the various services Mediaset would like to offer, Mediaset Premium is moving from a pure impulse pay-per-view (IPPV) model to a combination of IPPV and Easy Pay subscription plans. In the IPPV model, consumers purchase pre-paid cards with limited credit that can be recharged. The pre-paid, anonymous smartcards particularly suit the retail market as logistic and operational costs can be limited. By adding Easy Pay subscription plans, consumers can select from offers that range from 10 to 24 Euros per month. The 24 Euro offer includes a full package with kids, gallery and football programming. Consumers can enjoy a variety of services, while Mediaset gains a steady stream of monthly subscribers.

"Mediaset is taking the next step in offering its customers more choices to pay for their premium TV services. Our CAS solution can be configured in a variety of ways to support their current requirements and scale for their future plans," said Thierry Legrand, VP of Sales SMEA at Nagravision. "We look forward to continuing our work with Mediaset and assisting with DTT Pay TV growth in this region."

Working closely with Mediaset, Nagravision will ensure support for the DTT Pay TV growth during the Italian analog TV switch-off. The gradual switch-off of the analog TV will allow Mediaset to target a wide area of the population for its Pay TV Premium service. During this process Nagravision will support Mediaset in scaling the system to accommodate all new active subscribers.

About the Kudelski Group and Nagravision
The Kudelski Group (SWX: KUD.VX) is a world leader in digital security and convergent media solutions for the delivery of digital and interactive content. Its technologies are used in a wide range of services and applications requiring access control and rights management to secure the revenue of content owners and service providers for digital television and interactive applications across broadcast, broadband and mobile delivery networks. The Kudelski Group is also a world technology leader in the area of access control and management of people or vehicles to sites and events. It additionally offers professional recorders and high-end Hi-Fi products. The Kudelski Group is headquartered in Cheseaux-sur-Lausanne, Switzerland. Please visit www.nagra.com for more information.

Nagravision, a Kudelski Group company, is the leading supplier of open conditional access systems, DRM and integrated on-demand solutions for content providers and digital TV operators over broadcast, broadband and mobile platforms. Its technologies are currently being used by more than 120 leading Pay-TV operators worldwide securing content delivered to over 92 million active smart cards and devices. Please visit www.nagravision.com for more information.

Contacts:
Ivan Schnider
(contact for trade media)
Nagravision SA
Head of Marketing Communications
+41 21 732 09 40
[email protected]

Daniel Herrera
(contact for general interest media)
Kudelski Group
Head of Corporate Communications
+41 21 732 01 81
[email protected]

Santino Rumasuglia
(contact for investors and financial analysts)
Kudelski Group
Head of Investor Relations
+41 21 732 01 24
[email protected]