China Digital TV Partners with Microsoft to Launch PC-TV Tuner Solution for Windows Vista

BEIJING — China Digital TV Holding Co., Ltd. (NYSE: STV) (“China Digital TV” or the “Company”), the leading provider of conditional access systems to China’s rapidly growing digital television market, today announced the availability of a new PC-TV tuner solution which provides integrated support for the Microsoft Windows Vista operating system. This new solution will allow computer users throughout China to watch and record scrambled digital cable television programming on their PCs.

China Digital TV and Microsoft have been working together since March 2008 to develop products that would enable widespread adoption of the digital home. At the Microsoft Windows Hardware Engineering Conference 2008 (WinHEC 2008), representatives from both companies stated that they were pleased with the progress of the collaboration over the last eight months, and expect to further strengthen the partnership in areas of research and development of digital television technology as well as marketing.

“We are excited by the result of this partnership,” said Mr. Dong Li, China Digital TV’s chief marketing officer. “China Digital TV’s world class hardware solution will enable Microsoft Vista operating system to make use of its multimedia capabilities to the fullest extent by allowing Chinese people to watch high-definition TV programs on their household PCs.”

Mr. Yuanqing Shen, senior director of Strategic Partnership at Microsoft China R&D Group stated, “The Microsoft Windows Vista platform takes a leading role in supporting digital television programming and we are delighted to have China Digital TV as our partner in China. China Digital TV’s deep commitment to and leading position in this industry lays a solid foundation for the commercial success of the PC-TV turner solutions. We expect our cooperation to grow deeper and broader in the future.”

Based on a CA-enabled DVB-C Digital TV IC, the PC-TV tuner solution allows for a simplified approach in converting a PC into a digital television. The DVB-C HDTV Tuner can receive high-definition digital cable television programming, and decode the encrypted television signals through the conditional access module. The DVB-C HDTV Tuner is compatible with Windows Vista and Windows XP Media Center Edition (MCE), and is attached to a computer via either a PCI connection or a USB extension. Currently, the PC-TV tuner solution has been introduced to cable television network operators and manufacturers of PCs, set-top boxes and TV tuner cards around China.

In addition, China Digital TV also announced a new AIR-Mouse/AIR-Touch Panel IC compatible with all versions of Windows including Windows 7. Through a precise three-dimensional positioning, the AIR-Mouse/AIR-Touch Panel IC significantly enhances the interactive functionality of an input device such as a mouse or a remote control. This technological advancement serves as the platform that cable TV network operators rely on for developing interactive digital TV programming.