( BW)(TANDBERG-TELEVISION)(TAT.OL) TANDBERG Television Expands Market
with Acquisition of GoldPocket Interactive Company Now Poised to Offer
Most Comprehensive Suite of Solutions for Enabling Next-Generation
Television Viewing Experience

    Business Editors/High-Tech Editors

    SOUTHAMPTON, England--(BUSINESS WIRE)--Oct. 17, 2005--TANDBERG
Television (OSE:TAT) today announced that it has signed a definitive
agreement to acquire US based GoldPocket Interactive, Inc. (GPI), a
leading provider of open-standards interactive television technology,
solutions and systems. Under the terms of the agreement, TANDBERG
Television will acquire privately-held GPI for a mix of cash and
TANDBERG Television shares. The total consideration will be $78.5M and
the completion of the transaction is subject to a number of standard
conditions. The transaction is expected to close in December 2005.
    The combined resources of the two companies will broaden TANDBERG
Television's market offering and enable it to continue to build its
high margin software business. Earlier this year, TANDBERG Television
completed the acquisition of N2 Broadband, North America's leading
provider of open platform on-demand solutions. With today's
announcement, the combined company is strongly positioned to lead the
new television era by providing network operators with the highest
quality digital TV solutions including HDTV, video on demand,
advertising on-demand, IPTV, and interactive TV applications, all of
which are designed to maximize consumer appeal and generate increased
return on network investment.
    GPI is a recognized leader in interactive television technologies
and develops and sells products and services that create, manage, and
deliver digital and interactive media. The company specializes in high
performance interactive television systems used across digital
television, the internet, and wireless/mobile networks. GPI serves
many of the world's largest media companies, cable and satellite
operators, and wireless carriers through five major business lines:
Interactive Television, Cable & Satellite, Wireless, Digital Media
Security, and Interactive Advertising.
    The acquisition propels TANDBERG Television up the media value
chain and extends the company's position as a revenue generating
partner to operators, content owners and advertisers, as well as a key
provider of digital infrastructure technologies for the critical
network delivery phase.
    "The acquisition of GoldPocket will enable us to significantly
expand our presence within existing and new customers. We already have
numerous common customers with GPI in the North American market, such
as DIRECTV, FOX, NBC, News Corporation and Time Warner. Our
traditional relationships are with engineering/technology management
who make critical decisions regarding network architectures. The
addition of GPI's interactive technology and tools will bring us into
the content core where we can assist our customers in deploying
interactive applications that have a direct impact on their revenues
and consumer appeal," says Eric Cooney, President and CEO of TANDBERG
Television.
    According to Kagan Research, the market for interactive services
across cable, satellite and telco platforms is accelerating. US
operator revenues are estimated at $33.6M in 2005, with a forecasted
rise of over 20 times to $780M in 2009. In an increasingly complex and
crowded media world, content owners are moving to differentiate
themselves; advertisers are looking to interactive environments as key
to individual targeting and brand engagement; and broadcasters and
operators are launching interactive applications across multiple
platforms to boost their consumer appeal in a progressively more
competitive environment. GPI's interactive media technologies allow
constituents at all points of the value chain to turn these challenges
into success.
    TANDBERG Television has an open systems strategy on which it is
building the industry's most comprehensive platform for interactive,
on-demand digital TV delivery based on a non-proprietary environment
of proven performance. In addition to its world class professional
video compression head-end systems and leading open on-demand
solutions, TANDBERG Television is now able to provide content owners,
operators and advertisers with a non-proprietary environment for the
creation and delivery of interactive consumer applications across
cable, satellite, telco and mobile platforms.
    "We see an increasing opportunity for TANDBERG Television to meet
the growing demands from content owners and operators for technology
neutrality - a 'Technology Switzerland' for the digital entertainment
world. The acquisition of GPI is a further step towards our goal of
providing a fully integrated solution that combines the strengths of
all our technologies from the head-end through to the consumer
interface, with the openness to allow the use of standards based
equipment and applications from other vendors. This gives content
owners and operators increased flexibility and choice and protects the
service provider and the consumer from proprietary vendor lock-in -
it's a total win-win," adds Cooney.
    The acquisition further strengthens TANDBERG Television's North
American presence and builds on the company's merger with N2 Broadband
earlier this year. It also provides GPI solutions with an instant
route to international markets through TANDBERG Television's extensive
direct and partner sales organizations in Africa, Asia Pacific, Europe
and the Middle East, opening up more than 75 countries to GPI's
solutions and consultancy services. With the acquisition, TANDBERG
Television will now have offices in four of the most strategic cities
in the U.S. media/distribution industry; Atlanta, GA; Denver, CO; Los
Angeles, CA; and New York City.
    "TANDBERG Television is clearly a global leader in the
professional video compression and on-demand entertainment markets.
The company's world wide presence and its increasing success in North
America provide an ideal platform on which to build GoldPocket's lead
in the growing interactive space. Broadcasters and operators around
the world are looking for reliable solutions to help them make the
most of these new interactive opportunities and I believe that
TANDBERG Television has the credibility, the track record in digital
TV and the open technology to enable it to be the partner of choice on
this next stage of the digital entertainment journey," says Scott
Newnam, President of GoldPocket Interactive, Inc.
    GoldPocket employs 85 people based in Los Angeles and will
maintain its location in the heart of the television industry. The
company has an experienced management and software development team
with expertise in technology, entertainment, strategy, and finance.
With a 5 year track record of strong software and consultancy sales
growth resulting in an estimated $12M in revenue for FY 2005, Gold
Pocket has successfully established a strong foundation in the North
American interactive television market.

    About TANDBERG Television

    TANDBERG Television (Oslo:TAT.OL) designs and develops
professional systems that enable new business models in the media and
entertainment market through the delivery of high quality live digital
video and on-demand content. The company provides open standards-based
technology solutions, systems integration, support and monitoring
through its sales and 24-hour support operations in the Americas,
Asia, Australia and Europe. TANDBERG Television's customers include
many of the major broadcasters, network operators, telephone
companies, cable operators and content owners around the world. For
more information visit: http://www.tandbergtv.com

    --30--AC/lo*

    CONTACT: Corporate/EMEA/APAC
             Platform PR
             Gay Bell, +44 208 964 9149
             gbell@platformpr.com
             or
             North America
             Tandberg TV
             Dwight Witherspoon, 678-812-6319
             dwitherspoon@tandbergtv.com
             or
             GPI
             Mandira Mehra, 310-574-4656
             mmehra@goldpocket.com