Thomson Selected to Provide 3 Million Digital Set-Top Receivers for TELE-TV's Wireless Cable Home Video Delivery System

September 21,1995

NYNEX CONTACT: Media Relations,
(212) 395-0500

Thomson Selected to Provide 3 Million Digital Set-Top Receivers

for TELE-TV's Wireless Cable Home Video Delivery System.

NEW YORK -- Thomson Consumer

Electronics' RCA brand further strengthened its leading position

in digital video product development with the announcement today

that the company has been selected as prime contractor for TELE-TV's

wireless cable home video delivery system. A three-year contract

that could exceed $1 billion is now being negotiated.

TELE-TV -- a joint venture of Bell Atlantic, NYNEX,

and Pacific Telesis -- was formed to create television program

services for customers in the three companies' service areas,

and to acquire and integrate the technology needed for the delivery

of those services. Programming is planned to be delivered via

a Multichannel Multipoint Distribution System (MMDS). Thomson

will work to develop a system infrastructure, and will provide

digital set-top boxes that will enable TELE-TV customers to receive

100 or more channels of digital television entertainment including

local programing.

``The selection by TELE-TV reaffirms our position as the leading

provider of digital home entertainment products,'' said Thomson's

James E. Meyer, senior vice president, product management. ``It

also signals the speed at which consumer electronics and telco

technologies are converging, leading to a myriad of new digital

products that will further expand consumer entertainment choices

in the home.''

In a separate venture, over 1 million RCA-brand digital satellite

receiver boxes have been produced and distributed to dealers and

consumers, noted Meyer. ``We believe the digital set-top box is

a new growth area for our Americas technology center and manufacturing

facility, and our goal is to be a leading supplier to TELE-TV

for the next generation of set-tops that utilize fiber optic

systems to the home,'' he said.

Current plans call for TELE-TV customers to utilize an antenna,

the digital set-top box, and a specially designed interactive

remote control to access premium cable TV programming, movie channels,

sports, entertainment, and educational programming in addition

to pay-per-view movies and other special events. The system --

which will be developed and coordinated by Thomson at its Americas

Technology Center in Indianapolis -- is planned to provide the

capability for TV picture quality comparable to that of a laserdisc

player and sound equivalent to a CD player.

The system developed by Thomson will enable TELE-TV users to

quickly and easily access desired programming that will include

local broadcasts, basic and premium cable channels.

Meyer said 3 million set-top boxes -- labeled with both the

TELE-TV and RCA logos -- are planned to be produced at Thomson's

digital receiver manufacturing facility. Thomson plans to invest

$40- to $50 million in capital and manpower to complete the MMDS

project, including a $15 million expansion of the plant. The addition

closely follows a recently completed expansion at the facility

which increased production capacity to approximately 2 million

set-top receivers annually.

Programing from TELE-TV's distribution center is to be delivered

via microwave to up to 3 million homes and apartments, beginning

next year.

DiviCom and Nagra Vision will participate in developing the

broadcast infrastructure of the system. DiviCom will be the encoding

system provider, and Nagra Vision will provide the conditional

access security system.

Thomson Consumer Electronics, the largest television receiver

manufacturer in the United States, is the successor company to

the RCA and GE consumer electronics businesses. Over 10,000 employees

in six states are involved in manufacturing, technology and marketing

at the company's nine locations in the U.S. Television, video,

satellite, audio and communications products are sold under the

RCA, GE or ProScan brands from the Indianapolis headquarters.

Thomson Consumer Electronics is a subsidiary of THOMSON multimedia

whose parent is Thomson, S.A.

Sales revenues for Thomson Consumer Electronics and its Americas

business reached $4.2 billion in 1994, an increase of some $896

million over the previous year. The sharp rise was due principally

to the record-setting acceptance of the RCA Digital Satellite

System and strong growth in large screen television receivers

and projection models produced in the U.S.

NYNEX is a global communications and media company that provides
a full range of services in the northeastern United States and
high-growth markets around the world, including the United Kingdom,
Thailand, Gibraltar, Greece, Indonesia, the Philippines, Poland,
Slovakia and the Czech Republic.

The Corporation is a leader in the telecommunications, wireless communications,
cable television, directory publishing
and entertainment and information services.

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