Standardization establishes aacPlus as common denominator codec between mobile music download, digital broadcasting, consumer electronics and Internet streaming

PALM SPRINGS, Calif. & NUREMBERG, Germany—(BUSINESS WIRE)—Sept. 29, 2004— Coding Technologies, the leading provider of audio compression for mobile communications, consumer electronics and content distribution, announced today that its aacPlus audio codec has been standardized by 3GPP as the codec for high quality content delivery. The standardization by 3GPP is a clear sign for service operators, content providers and handset manufacturers as they can now rely on a single open standard technology for high quality audio services. By providing highest audio quality at lowest possible bit rates, aacPlus is the key enabler for the profitability of new services like mobile streaming or download, protecting investments in these new services on a high level.

As the most efficient audio codec worldwide, aacPlus is established in all market segments as the common denominator codec, paving the way for the long-awaited convergence between digital broadcasting, mobile and Internet streaming. Already in use for music download services of O2 or Vodafone, aacPlus is widely adopted in digital broadcasting and Internet streaming applications.

"The selection of aacPlus by 3GPP was the logical conclusion of what became apparent in the market," said Oliver Kunz, Vice President Strategic Marketing, Coding Technologies. "Early adopters like O2 who are already running innovative new service incorporating aacPlus have clearly recognized the value of this technology for their business."

"As the first operator offering mobile music downloads, we are very happy about the final standardization," adds Richard Poston, Director Corporate Communications, mmO2. "We've been really impressed by the excellent balance of good audio quality combined with efficient use of bandwidth."

"Efficient delivery of audio tracks is critical to our business," said Bill Valenti, CEO of Melodeo. "With the broad adoption of aacPlus through 3GPP, Melodeo can now deliver high fidelity-quality songs directly to mobile phones in a file size as low as 500kb per song."

"Full-length Music downloading have been showcased as the ideal applications for 2.5 and 3G infrastructure, and aacPlus is the perfect fit," adds Guillaume Decugis, COO of Musiwave. "aacPlus was the key to successfully launching our commercial Download solutions and services. We got tremendous feedback from our launched customers like Vodafone and will continue to use aacPlus for our coming new service launches."

Said Michael Bornhausser, CEO of SDC: "As an early adopter of aacPlus for our customers O2, Vodafone D2 and Siemens mobile, we are very happy about the standardization of this technology in 3GPP. It clearly shows that aacPlus is the first choice audio codec for our market leading SDC mobile DRM technology. Being part of the international standard paves the way for music services to be the next big hit in mobile communications."

Coding Technologies

Coding Technologies provides the best audio compression for mobile, broadcasting, and Internet. SBR(TM) (Spectral Band Replication) from Coding Technologies is a backward and forward compatible method to enhance the efficiency of any audio codec; putting the "PRO" in mp3PRO and the "Plus" in aacPlus. Parametric Stereo from Coding Technologies and Philips again significantly increases the efficiency of audio codecs for stereo signals at low bit rates. Products from Coding Technologies are fundamental enablers of open standards such as MPEG, Digital Radio Mondiale, HD Radio, and the DVD Forum.

Coding Technologies is a privately held company with offices in Sweden, Germany, and Silicon Valley. Founded in 1997 in Stockholm, the company later merged with a spin-off of the renowned Fraunhofer Institute in Germany, the inventor of MP3. Coding Technologies' customers include America Online, iBiquity Digital, mmO2, Nokia, RealNetworks, SK Telecom, Thomson, Texas Instruments, Vodafone, and XM Satellite Radio.

About O2

O2 aims to enrich customer's lives by enabling them to get the most from their mobile. As a leading provider of mobile services to consumers and businesses in the UK, O2 offers a range of services including text, media messaging, games, always on data connections (via "GPRS"), music over mobile and mobile video. O2 is the UK market leader in mobile data services such as text, with three quarters of a billion messages being sent by O2 customers each month.

O2 was formed in 2001 following the demerger from British Telecom of its former mobile business, BT Wireless. O2 (UK) Limited is a subsidiary of mmO2 plc which also delivers O2 branded services in Ireland and Germany. O2 has over 13.5 million customers in the UK.

Melodeo

Melodeo is a Seattle-based mobile music technology company that has developed a highly innovative client/server solution for delivering full length music tracks over-the-air to mobile phones, in collaboration with wireless operators. Melodeo's technology, incorporating aacPlus, will be launching via numerous carriers in Europe and the US during in 2004 and 2005.

Musiwave

Musiwave is the leading provider of mobile music entertainment services in Europe. With services distributed in 16 countries, Musiwave deals with more than 30 leading mobile telecommunications operators (T-Mobile, Vodafone, Orange, Telefonica Moviles, Optimus, Amena, Bouygues, SFR ...) and handset manufacturers (Nokia, Sagem ...). The added value of Musiwave's offer relies on the quality of content cleared of rights, state-of-the-art mobile technology and marketing and content management expertise.

About SDC

SDC develops unique DRM solutions to facilitate secure rich media content distribution across the mobile and fixline chain. Its market leading unique Digicont Java DRM technology, patented in 1996, protects all types of digital content for distribution across multiple device types and operating systems, with full, integrated licensing and PKI handling for super-distribution. SDC works alongside leading players in the DRM space to deliver the promise of mobile content distribution, including BMG, Warner Music, EMI, Sony Music, Universal, Sun Microsystems, Siemens Mobile,Digital World Services and Musiwave.

It is a member of the Open Mobile Alliance and MPEG 21. SDC's Java DRM accords with the projected OMA Phase 2 standard, due to be available for mass implementation in late 2005. SDC Java DRM is used by O2 UK, Germany and Ireland, Vodafone D2 in Germany, SFR in France and ExactMobile in South Africa to protect full-length music tracks. SDC is a privately owned company headquartered in Basle, Switzerland. More information can be found at www.digicont.com.

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Contact:

Coding Technologies GmbH, Nuernberg, Germany (Press)
Gerald Moser, + 49 911 928 91 14
              + 49 911 928 91 99 (fax)

Email Contact

www.codingtechnologies.com
        or
Axicom GmbH, Puchheim, Germany (PR agency Europe)
Anne Klein, + 49 89 800 908 23
            + 49 89 800 908 10 (fax)

Email Contact

www.axicom.de
        or
mPRm Communications, Los Angeles, Calif. (PR agency USA)
Karen DeMarco, + 1 323 933 3399
               + 1 323 939 7211 (fax)

Email Contact

www.mprm.com

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