Encoder and Decoder are designed for IP-based video.

Press Release Summary:

Delivering DVD-quality video performance at high and low bit rates, Model C-44 is capable of compressing up to 4 video channels over IP using MPEG-4 and Motion JPEG. It features enclosure that is less than 8 in. in length and can withstand -40° to +74°C operating temperatures. Unit is built with 4 digital signal processors, one per analog video input. Applications include high-quality MPEG-4 for live viewing and reduced frame rate MPEG-4 for time-lapse recording.

Original Press Release:

Optelecom-NKF Introduces Breakthrough in IP Video for the ITS Market

GERMANTOWN, Md., June 6 - Optelecom-NKF, Inc. (NASDAQ:OPTC), a leading global producer of advanced IP-video network solutions, is showcasing its new four-channel MPEG-4 video encoder and decoder, the C-44, at the 2007 ITS America's Annual Meeting in Palm Springs, California. The C-44 complements Optelecom-NKF's IP-video product portfolio with a cost-effective, multichannel solution in a temperature-hardened, compact enclosure.

The C-44 delivers DVD-quality video performance at both high and low bit rates with Optelecom-NKF's MPEG-4 compression algorithm. The C-44 is capable of compressing up to four video channels over IP using MPEG-4 and Motion JPEG, and features an enclosure less than eight inches in length that can withstand operating temperatures ranging from -40° to +74° Celsius.

The C-44 E encoder is built with four digital signal processors (DSP) - one per analog video input. Each DSP is capable of running two MPEG-4 encoders as well as an M-JPEG encoder. Applications include high-quality MPEG-4 for live viewing, reduced frame rate MPEG-4 for time-lapse recording, and JPEG image capture for web applications or remote devices such as PDAs.

"By integrating four independent decoders in a single-slot enclosure, the C-44 provides one of the industry's smallest, most compact solutions, enabling our customers to get the maximum functionality out of cabinets, in the face of limited rack space at street intersections and along freeways," said marketing director Ethan Maxon.

"One of the primary reasons for the acquisition of NKF in early 2005 was to bring together state-of-the-art video over IP solutions to a comprehensive fiber product line," added Edmund Ludwig, Optelecom-NKF's president and CEO. "The combined company, Optelecom-NKF, Inc., now offers the transportation industry both product sets designed to offer maximum functionality in an extremely small, temperature-hardened package."

About Optelecom-NKF, Inc.
Optelecom-NKF, Inc., is a global supplier of network video equipment, including video servers, Ethernet switches, IP cameras, fiber optic systems, and video management software. It delivers complete solutions for traffic management and security in airports, seaports, public transport, public space, industry parks, and buildings.

Founded in 1972, the Company's R&D centers have accumulated extensive knowledge of fiber optic and IP/Ethernet network technologies. Optelecom-NKF supplies top-quality equipment and is committed to providing its customers with expert technical advice and support. All products are developed and tested for LAN and WAN applications.

Optelecom-NKF has offices in the US, the Netherlands, France, Spain, the UK, and Singapore, and expertise centers in the US and Europe.

FCMN Contact: jdronenburg@optelecom-nkf.com

Source: Optelecom-NKF, Inc.

CONTACT: Rick Alpert of Optelecom-NKF, Inc., +1-301-948-7872

Web site: www.optelecom-nkf.com/

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