Terayon Launches CAP-1000, a New CherryPicker Application Platform to Drive Next Generation of Digital Video Processing

Terayon Launches CAP-1000, a New CherryPicker Application Platform to Drive Next Generation of Digital Video Processing

Demonstrates Industry's First MPEG-4 AVC HD and SD Rate Shaping in Conjunction with Cable-Tec Expo

SANTA CLARA, Calif., June 18 /PRNewswire-FirstCall/ -- Terayon Communication Systems, Inc. , an Emmy Award-winning provider of digital video solutions that enable content localization on-demand, today announced the availability of the CAP-1000, a new member of its CherryPicker Application Platform (CAP) line that gives video service providers unparalleled efficiency and flexibility in managing and localizing video streams.

The Terayon CAP-1000 delivers the first platform to offer a software application for rate shaping of real-time, broadcast quality MPEG-4 AVC SD and HD streams. The CAP-1000 enables additional applications such as grooming, dejittering and seamless localized ad insertion, and has the performance needed to support mission-critical initiatives like Switched Digital Video, VOD Playlist Advertising, and Bulk Encryption. As with its gold standard DM 6400 CherryPicker platform, users activate applications on the CAP-1000 by purchasing software license keys.

Terayon will demonstrate MPEG-4 AVC HD and SD rate shaping, the first application for the CAP-1000, in conjunction with the Society of Cable Telecommunications Engineers' Cable-Tec Expo, held June 20-22 in Orlando, FL. The demonstration will take place in the Terayon suite at the Peabody Hotel on International Boulevard, directly across from the Orange County Convention Center.

"As operators vie for subscribers and advertisers, they require solutions that enable programming and advertising to be customized and delivered in a cost-effective way that does not compromise quality or reliability," said Jerry Chase, CEO, Terayon Communication Systems. "The CAP-1000 builds on our 10-year video development history and field-proven performance and reliability to enable operators to deploy the services subscribers desire, with the localization that is coveted by advertisers."

The CAP-1000 provides a highly programmable device that can support evolving technical standards and emerging application needs through simple software upgrades, allowing customers to realize continuous returns on their initial capital investment. The CAP-1000's operations-friendly design ensures the high availability needed for high stream counts with redundant and hot-swappable power supplies, hot-swappable fan trays (with temporary redundancy as needed), and field-replaceable input/output and processing blades, all in a space- and power-saving 1RU (rack unit) enclosure.

The CAP-1000 operates in converging IP networks with carrier-class reliability, and features massive processing power to handle up to 2Gbps of aggregate video stream throughput. To maximize flexibility, Terayon has abstracted the hardware elements of the CAP-1000 from the software layer, enabling delivery of features such as session-based encryption, digital watermarking, FEC, motion graphics overlay, video scaling, and even third party applications via future software releases.

About Terayon

Terayon Communication Systems, Inc. (Pink Sheets: TERN.PK) provides real-time digital video applications to cable, satellite, telco IPTV, and DTT television service providers worldwide, which have deployed more than 8,000 Terayon digital video platforms to: localize content on-demand, brand programming, insert millions of digital advertisements daily, offer HDTV and optimize digital video bandwidth consumption. Terayon maintains its headquarters in Santa Clara, California, has sales and support offices worldwide, and is on the web at http://www.terayon.com/.

"Safe Harbor" Statements under the Private Securities Litigation Reform Act of 1995:

Except for the historical information contained herein, this news release contains forward-looking statements, estimates and assumptions by the Company and other parties that involve risks and uncertainties, including market acceptance of the CAP-1000, the deployment and use of the Company's products by video service providers to deliver targeted programming and advertising within the MPEG domain, the Company's ability to attract and retain video service providers as customers, the development of the market for targeted programming and advertising, and the development, performance and functionality of the Company's applications and platforms. 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, 2006 and in the Company's Quarterly Reports on Form 10-Q for the quarter ended March 31, 2007. 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.

Note: Terayon and the Terayon logo are registered trademarks of Terayon Communication Systems, Inc. All other trademarks are property of their respective owners.

First Call Analyst:
FCMN Contact:

Source: Terayon Communication Systems, Inc.

CONTACT: press, Paul Schneider of PSPR, Inc, +1-215-702-9784,
pspr@att.net; or investors, Kirsten Chapman or Moriah Shilton of
Lippert-Heilshorn & Associates, +1-415-433-3777, mshilton@lhai.com, all for
Terayon Communication Systems, Inc.

Web site:

http://www.terayon.com/

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