Kabel Deutschland introduces newest Nagravision conditional access system and extends cooperation

New long term sales contract supports KDG’s business model and expected business growth; Smartcard swap will begin in Autumn 2008; Currently deployed receiver population is fully supported

CHESEAUX, Switzerland — Nagravision, a Kudelski Group Company (SWX:KUD.VX) and the world’s leading independent provider of content protection and value-added service technology, was selected by Germany’s largest cable based television provider Kabel Deutschland (KDG) to protect the content rights and revenues for its forthcoming commercial deployments. The companies entered in a new long term agreement to support KDG’s business model and the expected business growth. Using the latest version of Nagravision’s conditional access system (CAS), KDG will deploy a new generation of smart cards in autumn 2008. The currently deployed population of receivers will be fully supported. KDG will comprehensively notify its subscribers about the smartcard swap.

“We are very pleased to extend co-operation with Nagravison to ensure a solid security and rich feature set within our cable network,” said Manuel Cubero, Chief Commercial Officer of KDG.

A customer of Nagravision’s since 2003, KDG operates cable networks in 13 German states and supplies its services to about 9 million TV households. The company develops and markets new triple play offers for digital TV, high-speed Internet and telephone connection via cable. KDG offers an open digital TV platform for all program providers. KDG has licensed the latest version of the Nagravision CAS for cable, satellite, terrestrial, IP, and mobile television.

“We look forward to extend our excellent relationship with KDG,” said Pierre Roy, EVP of the Kudelski Group and COO Nagravision. “Our latest Nagravision technology will secure KDG’s revenues in the complex German media environment by allowing KDG to serve its entire installed base of set-top boxes, hence fully protecting their existing investments. This will form a solid baseline for the sustained growth and progressive introduction of new digital TV services.”