NDS Group plc Reports First Quarter Results

Thursday, October 23rd, 2008
NDS Group logo

NEW YORK and LONDON — NDS Group plc (“NDS” or the “Company”) (Nasdaq: NNDS), a majority-owned subsidiary of News Corporation that supplies open end-to-end digital technology and services to digital pay-TV platform operations and content providers, announced today its results for the quarter ended September 30, 2008.

Key Developments In The First Quarter

“¢ In August 2008, NDS, News Corporation and two newly incorporated companies formed by funds advised by Permira Advisers LLP (the Permira Newcos) announced the signing of an implementation agreement for the previously announced transaction to take NDS private (the Proposed Transaction). The Proposed Transaction would result in the cancellation of all of NDS’s outstanding Series A ordinary shares for per-share consideration of $63 in cash. If the Proposed Transaction is consummated, the Permira Newcos and News Corporation would own approximately 51% and 49% of NDS, respectively. The Proposed Transaction is subject to certain conditions and there can be no assurance that the Proposed Transaction will be completed.
“¢ During the International Broadcasting Convention (IBC), NDS Unified Headend™ won “Best Content Protection Technology” Product of the Year Award from Cable & Satellite International Magazine.
“¢ NDS and Astro, the only direct-to-home satellite TV operator in Malaysia, completed the migration of over 2.7 million Astro subscribers to NDS VideoGuard® conditional access.
“¢ NDS and Premiere AG, the largest pay-TV operator in Germany and Austria, completed the first phase of the changeover of Premiere subscribers to NDS VideoGuard conditional access.
“¢ NDS launched NDS Dynamic™ an innovative suite of solutions for targeted and interactive advertising and audience measurement which allows TV operators to generate new revenue streams. A key partner in NDS Dynamic is TNS Media Research (TNS), a global leader in TV, radio and internet audience measurement.
“¢ Tata Sky chose NDS technology to launch India’s first Electronic Program Guide (EPG) in the Hindi language, underscoring NDS’ commitment to the Indian pay-TV market.
“¢ NDS subsidiary Jungo launched a patent-pending software solution to enable fast channel changing in Internet protocol television (IPTV) networks.

Key Non-Financial Measures

                                             Three months ended September 30,
                                                    2008           2007

Smart card deliveries (in millions)
  Quantity delivered in period                       8.0            7.4

Number of devices protected by NDS conditional
access (in millions)
  Net additions                                      5.1            3.2
  Devices protected, end of period                  95.4           78.6

Middleware clients deployed (in millions)
  Middleware clients deployed in period              6.2            8.1
  Deployments, end of period                        98.7           69.9

DVR clients deployed (in millions)
  DVR clients deployed in period                     1.4            1.5
  Deployments, end of period                        14.5            8.8

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