Microtune Sends Letter to NTIA Raising Compliance Issues about Subsidized U.S. Digital TV Converter Box Program

Microtune Shares Test Data on Non-Compliant CECB’s with NTIA

PLANO, Texas — Microtune®, Inc. (NASDAQ: TUNE) sent a letter yesterday to the National Telecommunications and Information Administration (NTIA) identifying a matter of critical importance to the U.S. government and to American consumers in the successful implementation of the U.S. digital television transition.

Through internal testing in its Advanced Television Systems Committee (ATSC) lab, Microtune has discovered tuner-related performance failures in certain certified coupon-eligible converter boxes (CECBs) that do not contain Microtune tuners. These converter boxes are widely available in retail channels. Their failure to meet NTIA regulatory performance requirements could potentially result in the loss of digital TV reception in a number of major metropolitan areas, potentially impacting the millions of Americans who will rely on these converter boxes to receive free over-the-air TV broadcasts. Microtune has made its test results, the methodologies of which have been reviewed and validated by a third-party industry expert, available to the NTIA.

“As a U.S. tuner company and as a stakeholder in the country’s historic conversion to digital TV transmission, we believe it is vital to raise an issue that could dramatically impact the success of this transition,” said James A. Fontaine, President and CEO of Microtune. “The NTIA has established rigorous and necessary performance standards for the CECB program, which is subsidized by the U.S. government, and the NTIA requires converter box manufacturers to comply with these technical standards. To protect the interests of American consumers, we have vigorously urged the NTIA to quickly audit through expanded testing potentially non-compliant converter boxes that are currently in production, and we have offered to support its efforts by briefing its representatives on our test findings.”

Mr. Fontaine added, “The ability to reliably receive digital terrestrial broadcasts is an important issue for consumers nationwide, not only in the near-term, but also when broadcasters move to final channel assignments after February 2009. Poor or non-performing converter boxes could create lack of confidence not only in the digital TV transition, but also in other digital TV products as well.”

Microtune has been a committed supporter of digital TV receiver performance standards for all television products targeted to the U.S., including converter boxes, digital and HD TVs, and all TV peripherals.

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