| Thomson Expands Relationship with Channel One to Upgrade Network
From Analog to Digital with Customized Hardware, Middleware, and Services
Two Separate Business Units Team to Manage Pilot Program That Enhances Channel One’s National Broadcast Infrastructure
with New Head-Ends, Increased Network Reliability, and Lower Maintenance Costs
ALPHARETTA, Ga. and PARIS, France — July 11, 2006 — Reinforcing its position as the world’s
leading provider of digital video technologies, Thomson (Euronext Paris: 18453; NYSE: TMS) today announced it has reached an
agreement with Channel One Communications Corporation, the parent company and operator of the preeminent news and public affairs
content provider for teenagers, to manage a pilot program which upgrades select locations in Channel One’s existing communications
network from analog to digital with customized hardware, middleware, and services. The technologies for the upgrade will be provided
by two Thomson business units, Technicolor Network Services and Thomson Access Platforms and Gateways.
The terms of the transaction, which were not disclosed, expand the scope of an existing, long-term relationship between Channel
One and Alpharetta, Ga.-based Convergent Media Systems Corporation, a unit of Technicolor Network Services, and part of the Services
division of Thomson. The new contract for the pilot program was awarded to Convergent by Channel One following a detailed review
of competitive bids. Under the existing agreement between the two companies, Convergent manages all back-end satellite network
equipment, transmission services, hardware installations, helpdesk operations, and network maintenance at all Channel One-affiliated
middle schools and high schools in the United States. Currently, the Channel One network, which reaches over 11,000 schools nationwide,
is viewed in over 350,000 classrooms and by more than seven million students every school day.
The pilot program contract calls for Convergent to upgrade Channel One’s analog head-end technology located at 125 affiliated
middle schools and high schools by installing and maintaining custom-designed digital systems, including set-top boxes with digital
video recorder (DVR) and digital content playout functionality from Thomson’s Access Platforms and Gateways business. The
equipment deployment for the pilot program will begin in September 2006.
“Our involvement in the launch of the pilot program strengthens our long-standing and valued relationship with Channel
One, and exemplifies Thomson’s commitment to providing the company with the sophisticated technologies, services, and resources
it needs to create a richer viewing experience for millions of students across the country,” said R. Bryan Allen, president
and chief executive officer of Convergent Media Systems Corporation. “Furthermore, it represents another example of Thomson’s
industry-leading expertise in successfully transforming the traditional communications of world-class corporate, academic, and
government organizations into high-impact, video-powered, and engaging broadcast networks.”
“We initiated the test rollout of a digital broadcast network to further our obligation to our teenage audience and the
classroom environment. We see movement to a new broadcasting infrastructure as an exciting evolution of the Channel One network,
and the position we maintain as a next generation news organization,” said Judy L. Harris, president and chief executive
officer of Channel One. “Channel One is pleased to be working with such a trusted business partner as Thomson as we continue
to invest in and develop our network to inform teens, and inspire a dialogue around topics of the day.”
Thomson to Upgrade Existing Channel One Network with Customized Hardware, Middleware and Services
2-2-2
In addition to the set-top box and DVR unit, each pilot system will consist of a secure head-end enclosure, including video
amplifier, modulator, traps and filters, and connectors; and various software applications, including a customized, Channel One-branded
user interface on the device, internal DVR diagnostic tools, a database of addressable receivers; and an event logging program.
Convergent will also oversee hardware shipments to each pilot program location, the decommissioning and disposal of old head-ends,
and the uplinking to and management of the KenCast host service on existing Channel One satellite segments.
The Thomson DVR enables each school to receive the digital Channel One broadcast transmission via satellite, and then distribute
the content to multiple classrooms at each location on a live, recorded, or on-demand basis at the administrator’s discretion
and convenience. The result is a higher-quality picture in each classroom, increased reliability, lower maintenance costs, and
improved network management capabilities.
# # #
Certain statements in this press release, including any discussion of management expectations for future periods, constitute
forward-looking statements within the meaning of the “safe harbor” of the U.S. Private Securities Litigation Reform
Act of 1995. Such forward-looking statements are based on management’s current expectations and beliefs, and are subject
to a number of factors and uncertainties that could cause actual results to differ materially from the future results expressed
or implied by the forward-looking statements due to changes in global economic and business conditions, consumer electronics
markets, and regulatory factors. More detailed information on the potential factors that could affect the financial results of
Thomson is contained in Thomson’s filings with the SEC.
About Thomson — Leader In Digital Video Technologies
Thomson (Euronext Paris: 18453; NYSE: TMS) provides technology, services, and systems and equipment to help its Media & Entertainment
clients — content creators, content distributors, and users of its technology — realize their business goals and
optimize their performance in a rapidly-changing technology environment. The Group is the preferred partner to the Media & Entertainment
Industries through its Technicolor, Grass Valley, RCA, and Thomson brands. For more information: http://www.thomson.net.
About Technicolor Network Services
Technicolor Network Services, part of the Services division of Thomson, provides clients with broadcast playout
services by offering an online digital content distribution network that supports multiple origination platforms, including cable,
broadcast, and direct-to-home. In addition, Technicolor Network Services addresses the out-of-home marketplace with a full range
of network design and management services. For more information: http://www.technicolornetworkservices.com.
About Thomson Access Platforms and Gateways
Thomson’s Access Platforms and Gateways (AP&G) business, part of the company’s Systems and Equipment
division, is a leading supplier of digital entertainment receivers to the world’s major satellite and terrestrial broadcasters,
cable operators and telecom service providers. It offers a full range of digital set-top boxes, phones, broadband modems and
gateways with modular VoIP, IPTV, and wireless capabilities. Through its Next Generation Networks business unit, Cirpack, it
is also one of the leading suppliers of softswitch solutions to migrate telecom infrastructures to Next Generation Networks (NGN)
and IP Multimedia Subsystem (IMS), enabling massive deployments of broadband telephony and IP Centrex, for instance. Products
are marketed under the RCA, THOMSON, SpeedTouch, and CIRPACK brands. For more information: http://www.thomson-broadband.com.
About Channel One Communications Corporation
Channel One Communications Corporation operates Peabody Award-winning Channel One, the preeminent news and public affairs content
provider reaching more than seven million teens in middle schools and high schools across the country, nearly 30% of teenagers
in the United States. In recent months, Channel One News has covered fast-breaking world events from regions such as Iraq,
Kuwait, Afghanistan, Thailand, Sri Lanka, Jordan, Cuba, Venezuela, North Korea, Myanmar, and Qatar. Channel One News programming
has been featured on leading networks and news programs, including CNN, ABC News, The WB, “Nightline,” and “The
Today Show.” Channel One is a subsidiary of PRIMEDIA, Inc., the leading targeted media company in the United States.
For more information: http://www.channelone.com.
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