Scientific-Atlanta Accelerates Shipments Of Explorer Digital Set-Tops To Time Warner For Digital TV Services

Scientific-Atlanta, Inc. (NYSE: SFA) has announced that Time Warner (NYSE: TWX) has accelerated its rate of shipments of the Scientific-Atlanta ExplorerÆ interactive digital set-top and has committed to purchase 500,000 Explorer set-tops by June 30, 2000, in addition to the nearly 400,000 Explorer set-tops already delivered in the last 12 months.""Demand for the Explorer set-top in our divisions has already exceeded expectations, prompting us to order units at an accelerated rate,"" said Thomas M. Rutledge, Senior Executive Vice President of Time Warner Cable. ""With hundreds of thousands of Explorer set-tops already deployed to Time Warner sites, we are prepared to layer additional enhanced services onto this platform over the next several years and we see video-on-demand as central to this strategy.""""Time Warner has pioneered two-way, real-time services for nearly a decade and continues to be an industry leader in deploying advanced services such as video-on-demand,"" said Jim McDonald, President and CEO of Scientific-Atlanta. ""The popularity of the Explorer platform for both popular digital channels and rich new applications, such as VOD, validates our mutual strategy to be first to market with a two-way, Internet protocol-based digital set-top.""By the end of December, Time Warner will have installed Scientific-Atlanta digital headend equipment in 36 of its operating divisions. As services in these divisions are launched, more than 11 million of Time Warner's subscribers are expected to be able to receive digital services through the Explorer set-top and digital network. Nearly all of Time Warner's more than 12 million customers should be able to receive digital services by the end of the year 2000.Video-on-demand will be tested in Tampa Bay, Florida, Oceanic, Hawaii, and Austin, Texas in the year 2000, in preparation for wider deployment throughout the Time Warner network in 2001. Time Warner customers with HDTV sets are using the Scientific-Atlanta Explorer 2000HD set-top for cable service.Time Warner Cable and Scientific-Atlanta have long collaborated on developing the key components of a two-way, digital broadband network. The two companies pioneered much of the technology that led to the OpenCable specifications for an open, fully interoperable advanced digital network. Scientific-Atlanta is the primary network integrator and supplier of network equipment, and the largest supplier of digital set-tops, for Time Warner Cable. These networks are designed to bring next-generation digital video, audio and data services to cable customers.News of Time Warner's accelerated shipments of Explorer units follows the recent announcement that Scientific-Atlanta is expanding its manufacturing facility in Juarez, Mexico, bringing the total manufacturing space to 330,000 square feet at the facility. The expansion will enable Scientific-Atlanta to ramp up production capacity for its Explorer set-tops as well as the broadband access equipment needed to bring interactive services to the home.About Scientific-Atlanta, Inc.Scientific-Atlanta, Inc. (http://www.scientificatlanta.com ) is a leading supplier of broadband communications systems, satellite-based video, voice and data communications networks, and worldwide customer service and support.

Source: Scientific-Atlanta, Inc.Web Site: http://www.scientificatlanta.com