Terayon To Unveil Content Localization Applications at CableLabs® Winter Conference March 5-7


Graphic Overlays and SqueezeBack Create New Advertising Opportunities for Cable System Operators

SANTA CLARA, Calif., March 5 -- Terayon Communication Systems, Inc. (Pink Sheets: TERN.PK), an Emmy Award-winning provider of digital video networking applications that enable content localization on-demand, today announced that it will unveil its newly-announced Overlay and SqueezeBack applications at the CableLabs® Winter Conference March 5-7 in Denver, CO.

In its exhibit at the Hyatt Regency, Terayon will show how its Static Graphic Overlay, Motion Graphic Overlay and SqueezeBack applications can help video service providers to localize content and create targeted advertising opportunities through the real-time insertion of programming and sponsor information. The applications, which operate uniquely within the compressed MPEG domain, are designed to deliver sizable advantages over other approaches by eliminating the cost, complexity and video quality degradation of current products that require converting the video back to analog.

"The cable industry understands the need to make content and advertising as relevant as possible for today's media consumer," said Fabrice Quinard, vice president, engineering for Terayon. "Our Graphic Overlay and SqueezeBack applications combine the proven capabilities of our DM 6400 Network CherryPicker platform with Terayon software application expertise to create new value for large and small cable system operators."

About Terayon

Terayon Communication Systems, Inc. (Pink Sheets: TERN.PK) provides real-time digital video networking applications to cable, satellite and telecommunication service providers worldwide, which have deployed more than 7,800 Terayon CherryPickers and related digital video system components to localize services and advertising on-demand and brand their programming, insert millions of digital ads, offer HDTV and other digital video services. Terayon maintains its headquarters in Santa Clara, California; has sales and support offices worldwide and is on the web at www.terayon.com.

Source: Terayon Communication Systems, Inc.

Web site: www.terayon.com/

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