Terayon Exhibiting Digital Solutions at NCTC Winter Educational Conference

Terayon Exhibiting Digital Solutions at NCTC Winter Educational Conference

Show Provides Opportunity to Reach Smaller Operators

SANTA CLARA, Calif., Jan. 29 /PRNewswire-FirstCall/ -- Terayon Communication Systems, Inc. (Pink Sheets: TERN.PK), an Emmy Award-winning provider of digital video networking applications that enable service providers to localize content on-demand, announced today that it is exhibiting products that enable large and small cable system operators to leverage the advantages of digital delivery at the National Cable Television Co-Operative's (NCTC) Winter Educational Conference this week.

At the Jan. 29-30 event in Las Vegas, Terayon is showcasing its DM 6400 Network CherryPicker before the NCTC's attendees. The NCTC is a programming and hardware buying cooperative that represents operators serving 14.3 million subscribers in the United States.

"Like the largest cable operators we serve, the smaller operators who make up the NCTC membership are also offering digital programming and require advanced solutions like our DM 6400 Network CherryPicker," said Frank Gadberry, Terayon representative to NCTC membership. "NCTC - and its Winter Educational Conference in particular - represents a significant opportunity to easily reach these smaller cable operators. By working with these operators, we can help them to deploy solutions that enable the more efficient delivery of digital programming and advertising today, and 'localization on demand' solutions for the targeting of programming and advertising to specific subscriber groups."

About Terayon

Terayon Communication Systems, Inc. (Pink Sheets: TERN.PK) provides real- time digital video networking applications to cable, satellite and telecommunication service providers worldwide, which have deployed more than 7,700 of Terayon's digital video systems to localize services and advertising on-demand and brand their programming, insert millions of digital ads, offer HDTV and other digital video services. Terayon maintains its headquarters in Santa Clara, California; has sales and support offices worldwide and is on the web at www.terayon.com.

Meaningful Cautionary Statement Regarding Forward-Looking Statements

Except for the historical information contained herein, this news release contains forward-looking statements, estimates and assumptions by Terayon and other parties that involve risks and uncertainties, including the requirement, deployment and use of the Company's products by cable operators to deliver digital programming or provide targeted programming and advertising, and the Company's ability to attract and retain cable operators as customers. For additional risks and uncertainties, see the "Risk Factors" disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2005 and in the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30 and September 30, 2006. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under the federal securities laws.

Source: Terayon Communication Systems, Inc.

CONTACT: Press, Paul Schneider of PSPR, Inc., +1-215-702-9784, or
pspr@att.net; Investors, Kirsten Chapman or Moriah Shilton, +1-415-433-3777,
or mshilton@lhai.com, both of Lippert/Heilshorn & Associates

Web site: http://www.terayon.com/

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