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Scientific-Atlanta and IBM to Demonstrate E-Commerce Solutions for Interactive Digital TV

Showcases electronic purchases via the television using Scientific-Atlanta's Explorer® 2000 digital set-top and PowerTV® operating system, along with IBM Net.commerce

Atlanta - 02 Dec 1998: . . . Scientific-Atlanta, Inc. and IBM announced today they are demonstrating how consumers can use services such as home shopping on Scientific-Atlanta's Explorer* 2000 advanced digital set top and interactive digital network.

The demonstration in Scientific-Atlanta's Booth #2345 at the Western Cable Show in Anaheim December 1-4, showcases technologies available today, including IBM Net.commerce*, which is currently being used by Web retailers such as macy's.com and Nordstrom Inc. In addition, the demonstration will feature the PowerTV® HTML Engine, which enables real-time transactions and Internet service delivery over Scientific-Atlanta's interactive digital network.

Each Explorer 2000 set-top has a built-in slot that accepts a standard-size ISO smart card used for money transfer. This technology will enable customers to pay for TV home shopping, video-on-demand or fee-based Internet services. Secure transactions are assured by Scientific-Atlanta's PowerKEY® conditional access system, which uses a public/private key component to support authentication of content.

"The goal of our efforts with IBM is to make sure the type of online commerce that is gaining popularity on the PC is supported on cable television set-top boxes, reaching a potential market of 65 million cable TV subscribers," said Allen H. Ecker, president of Scientific-Atlanta's Subscriber Network Sector. "With our pioneering Explorer 2000 set-top and digital network, combined with leading e-commerce technology, such as IBM Net.Commerce, customers can look forward to shopping at home quickly and easily through their televisions."

"Scientific-Atlanta's open-standards approach to the Explorer platform has streamlined the development of e-commerce solutions for interactive television," said William J. Moses, vice president, Broadcast, Cable and Sports, IBM Global Telecommunications and Media Industries. "The combination of powerful e-business technologies, such as IBM Net.Commerce, with Scientific-Atlanta's pioneering interactive set-top and digital network will open up an exciting array of new applications to customers. The possibilities are endless -- from home banking to stock trading to home shopping."

Scientific-Atlanta encourages third-party developers to create new applications for the Explorer platform through its CreativEdgeTM Developers' Program. Participants in the CreativEdge Developers' Program receive extensive support services and software toolkits, as well as Scientific-Atlanta's freely available APIs, or application program interfaces, to enable the next generation of interactive television.

Scientific-Atlanta has received purchase orders or commitments for its interactive digital network from 14 cable operators in the United States and Canada, representing more than 75 systems which have more than 16 million cable subscribers. These cable operators include Time Warner, TCI, Cox, Comcast, Adelphia, Marcus Cable, Rogers and Videotron.

The Explorer 2000 set-top complies with expected OpenCable specifications and has high-throughput two-way communications and sufficient processing power, memory, and graphics to enable a variety of interactive applications for cable subscribers, including Internet access, video-on-demand, home shopping and IP-based applications.

Scientific-Atlanta's interactive digital network is based on an open architecture that allows for an infinite number of applications and services to be added to the network without changes in network infrastructure.

IBM Global Telecommunications & Media Industries offers a wide range of solutions for telecommunications, cable TV, wireless, broadcasting, publishing, advertising, sports and entertainment industries, as well as Internet service providers in more than 160 countries.

For more information on IBM Global Telecommunications Media Industries visit www.ibm.com/telmedia. PowerTV, Inc. ( www.powertv.com) is a leading developer of systems software solutions, applications and services for digital interactive cable television. PowerTV's product line includes the only operating system on the market specifically designed for digital cable set-top boxes. In addition, PowerTV has developed an Internet-leveraged applications platform, the SofaSOFT(TM) line of interactive applications and a family of technical and marketing services to support PowerTV products.

Scientific-Atlanta, Inc. (NYSE:SFA) ( www.sciatl.com) is a leading supplier of broadband communications systems, satellite-based video, voice and data communications networks, and worldwide customer service and support.

"Forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, may be included in this news release. A variety of factors could cause Scientific-Atlanta's actual results to differ from the anticipated results expressed in such forward-looking statements. Investors are referred to Scientific-Atlanta's Cautionary Statements (Exhibit 99 to the Company's most recent Form 10-Q), which statements are incorporated into this news release by reference.

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Explorer and PowerKEY are registered trademarks and CreativEdge is a trademark of Scientific-Atlanta, Inc. PowerTV is a registered trademark and SofaSOFT is a trademark of PowerTV, Inc. IBM and Net.Commerce are trademarks or registered trademarks of International Business Machines Corporation in the U.S. and other countries. All other company names or products may be trademarks or registered trademarks of their respective companies.

Note to Editors: Please visit the Scientific-Atlanta Web Page at www.sciatl.com (News Room section) if you are interested in obtaining electronic photos or viewing additional information about Scientific-Atlanta, Inc.

Contact(s) information

Jim Elder
IBM
914-642-5886
jelder@us.ibm.com

Dave Doolittle
IBM
Crescent Communications for Scientific-Atlanta
ddoolittle@crescomm.com

Kerri Dimke
IBM
Scientific-Atlanta
kerri.dimke@sciatl.com

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