NMS Communications and PacketVideo to Develop Carrier-Grade Systems for Wireless Multimedia Services

7/10/2002 - NMS Communications (NASDAQ: NMSS), the leading supplier of technology for tomorrow's networks, and PacketVideo, the global leader in wireless multimedia, have established an agreement to develop two-way video communications systems that bring together the power of voice and video for real-time communications. Service providers will use these systems to quickly and cost-effectively introduce new wireless offerings for consumers, businesses, and the emerging public safety and security markets. Such services take advantage of video communications between landline and wireless users, and include the use of a handset as a wireless video-enabled terminal to interact with compatible terminals. The standards-compliant, Third Generation Partnership Program (3GPP) products resulting from this alliance will support mobile operators' networks worldwide.

With this agreement, NMS and PacketVideo reaffirm their commitment to enable service providers worldwide to attract new subscribers, increase average revenue per user (ARPU), build loyalty, and generate revenue from new services and markets.

NMS brings an extensive scope of specialized expertise and products to the collaborative effort, including two decades of success in carrier-grade systems design and experience in packet telephony. In addition to leveraging its high-density Convergence Generation™ (CG) 6500 media server platform, NMS will also use field-proven voice quality enhancement technologies from its Voice Enhancement Systems business and the wireless video expertise of its worldwide Services & Solutions consulting group.

A pioneer and worldwide leader in development and deployment of wireless multimedia, PacketVideo will leverage its acknowledged expertise in video and multimedia technology, including 3GPP packet-switched streaming, and pv2way™ software for 3G-324M terminals. 3G-324M is an approved 3GPP standard developed to ensure interoperability between landline video systems and video-enabled mobile devices.

"Mobile operators around the world launching multimedia services require infrastructure equipped to handle commercial deployment and heavy usage. Products to be developed by NMS — a company that fully understands the meaning of carrier-grade, and has an established track record — will further extend PacketVideo's globally recognized robust and scalable mobilemedia software," said James Brailean, PacketVideo president, CEO, and co-founder.

"NMS sees great value in working with PacketVideo, a true pioneer in wireless video telephony that plays a central role in enhancing the value and attractiveness of service provider offerings," said Clarke Ryan, senior vice president and general manager of NMS Communications. "Mobile service providers, especially in Asia and Europe, are looking at the potential of wireless multimedia as an up-and-coming blockbuster attraction to increase revenues. Our companies' collaboration will help wireless carriers improve their time to market and reduce the risk of deploying cutting-edge video telephony services, so they can realize their vision and recoup investments in next-generation networks."

"The alliance between NMS and PacketVideo is a significant move. Mobile multimedia is technically complex and offers great potential when implemented in an integrated manner. Cooperative effort by suppliers with strong credentials is decidedly a prime requirement for the creation of viable service offerings," said Philip Marshall, director of wireless and mobile technologies at the Yankee Group. "Efforts like this one are likely to offer a great deal of value to service providers who are able to bring mobile multimedia to the 'small screen' with high service quality and controlled capital investment."

About PacketVideo
PacketVideo is the world's leading provider of carrier class software that enables mobilemedia today. PacketVideo's standards-based software products enable the distribution of one- and two-way video, high-quality audio, animation and rich graphics over wireless networks to mobile devices. PacketVideo's mobilemedia products enhance communication, productivity, security, information and entertainment, enabling the delivery of an enriching and productive mobile experience.

PacketVideo's investors include AOL Time Warner (NYSE: AOL), Comverse Technology (Nasdaq: CMVT), Credit Suisse First Boston, GE Equity (NYSE: GE), Intel Capital (Nasdaq: INTC), Kyocera (NYSE: KYO), Motorola (NYSE: MOT), Philips (NYSE: PHG), QUALCOMM (Nasdaq: QCOM), SAIC, Siemens' Mustang Ventures, Sony Corporation of America (NYSE: SNE), Sun Microsystems (Nasdaq: SUNW), Texas Instruments (NYSE: TXN), and others. To learn more, visit http://www.pv.com

About NMS Communications
NMS Communications (NASDAQ: NMSS) designs, delivers, and supports technology-leading systems and system building blocks for innovative voice, video, and data services on wireless and wireline networks. NMS products and services help the world's top communications equipment suppliers, solution developers, and wireless operators bring their applications and services to market faster and at lower costs.

Headquartered in Framingham, Massachusetts, and with offices around the world, NMS has a rich history of technology innovations that advance the growth of the global communications industry. These achievements include the only voice quality enhancement software pairing noise reduction and compensation to create an optimal listening environment for both parties in a mobile phone conversation, the world's first complete open IP gateway, the first complete open packet media server, and the first complete open solution for voice applications and services. Visit www.nmscommunications.com for more information.

Statements in this document expressing the beliefs and expectations of management regarding future performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's expectations as of the date of this document and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to risks and uncertainties including, but not limited to, a continued slowdown in communications spending, the implementation of the Company's strategic repositioning and market acceptance of the Company's new solutions strategy, quarterly fluctuations in financial results, the Company's ability to exploit fully the value of its technology and its strategic partnerships and alliances, the availability of products from vendors and other risks. These and other risks are detailed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K for the year ended December 31, 2001. In addition, while management may elect to update forward-looking statements at some point in the future, management specifically disclaims any obligation to do so, even if its estimates change. Any reference to our website in this press release is not intended to incorporate the contents thereof into this press release or any other public announcement.

NMS Communications and Convergence Generation are trademarks of NMS Communications Corporation. All other product or corporate references may be trademarks or registered trademarks of their respective companies.

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