Digeo® Announces Plans to Enter Retail Market; Previews Next -Generation Moxi™ Products

Digeo, Inc. announced it will begin selling new versions of the Emmy® Award-winning Moxi™ digital media recorder directly to consumers in 2007.

Digeo® Announces Plans to Enter Retail Market;

Previews Next -Generation Moxi™ Products

Moxi Technology shown in Two Prototypes at CES, Including
AMD LIVE!™ Home Cinema Reference Design

LAS VEGAS, Nev. - January 8, 2007 - Digeo, Inc. today announced it will begin selling new versions of the Emmy® Award -winning Moxi™ digital media recorder directly to consumers in 2007. The consumer offerings, which are the first of several new Moxi -based products Digeo expects to ship in 2007, are part of a comprehensive new strategic direction at the company. The new corporate strategy seeks to improve the high -definition television (HDTV) experience by providing people with a compelling alternative in digital media recording products. Digeo will also offer to license the Moxi technology to a broad range of consumer electronics manufacturers to include in next -generation media centers, TVs and other devices.

This week, the company is previewing two next -generation Moxi -based HD Digital Media Recorders, showing prototype hardware designs at the Consumer Electronics Show (CES), Las Vegas Convention Center, South Hall 2, Booth #26610.

"As Digeo's executive team mapped emerging forces in the market against the positive consumer feedback we consistently hear about Moxi, we realized that Digeo should extend the reach of its vision for a truly great high -definition television experience," said Mike Fidler, Digeo's CEO. "In the past, we have offered the Moxi technology to people exclusively through our cable operator partners. The proliferation of HD devices and programming, the growing abundance of digital content, and the increasingly sophisticated expectations of consumers make this a perfect time to offer Moxi more broadly."

Digeo's new corporate direction includes:
• Creating a new line of Moxi -branded products that will be sold directly to consumers through consumer -electronics retailers
• Licensing Moxi technology to third -party companies as the user interface, application, portal and/or services to drive their products
• Broaden the ecosystem of service and content partners to enhance the Moxi experience and improve the platform's attractiveness and value to consumers.
The company will continue to provide its Emmy Award -winning HD digital media recorders (DMRs) to its cable operator partners, which currently have installed Moxi in approximately 400,000 homes nationwide.

"Our cable operator -customers have already experienced the business benefits that come from offering a winning combination of advanced features to consumers," said Greg Gudorf, Digeo chief operating officer. "Capabilities like multi -room HD recording and the easy -to -use Moxi interface have increased per -customer revenues and reduced churn for cable operators."

Industry Changes Create Opportunities
A number of changes in the cable industry, including the Federal Communications Commission (FCC) mandated de -coupling of embedded security from cable set -top boxes and equipment on July 1, 2007, provide a broader opportunity for companies to bring state -of -the -art products to market. The FCC mandate, combined with the growing proliferation of HDTV devices and programming and the ever -increasing number of options for accessing digital media content, will result in an unprecedented ability for television viewers to create the ultimate television viewing experience. Digital media recorders provide people with a powerful portal to easily access and manage video programming and digital media, including photos, music, games and other personalized content.

"As we've seen from products like the iPod, making the product easy to use is one of the most difficult and important parts of any consumer electronics solution," said Rob Enderle, Principal Analyst, Enderle Group. "Of all of the interfaces I've seen, the Digeo Moxi interface is the best and it sets the standard for media center products. Before now, you couldn't get the Moxi interface unless your cable company bought the solution. With this announcement, this wonderful interface will now be available widely: reminding us that the freedom to choose is a wonderful thing."

New partners for consumer offering
At CES, Digeo will preview two prototypes of planned products for consumers. Both versions will feature the Emmy Award -winning Moxi interface, an integrated CD/DVD player, and features that allow users to watch, record and play high -definition programming, stream content from their PCs and support web scheduling. One prototype, the Moxi Multi -room HD DMR, will provide multi -room HD recording and playback with an integrated multi -stream CableCard (M -Card). A second prototype, the Moxi Home Cinema Edition HD DMR, is a Linux -based system leveraging the recently announced AMD LIVE!™ Home Cinema reference design that includes advanced audio features and is the ultimate device for home theatre enthusiasts. The Moxi retail product offerings are planned to be available in the second half of 2007.


About Digeo, Inc.

Digeo provides media center platforms that deliver one of the best consumer experiences in high -definition media centers for the connected home. The company's flagship product - the two -time Emmy® Award -winning Moxi Media Center - serves as a hub for whole -home distribution of digital entertainment and has been deployed in nearly 400,000 homes by eight cable operators nationwide. Backed primarily by Paul Allen's Vulcan, Inc., Digeo has offices in Kirkland, Wash. For more information, please visit www.digeo.com.

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Digeo® and Moxi™ are the trademarks of Digeo, Inc.

Use of the trademarks and service marks of the National Television Academy ("NTA"), including the mark EMMY®, requires the prior express written permission of National Television Academy.

All other marks are the property of their respective owners.


For more information, press only:

Jodie Cadieux
Director, Corporate Communications
Digeo, Inc.
425 -896 -6050
Jodie.cadieux@digeo.com

Or

OnPR for Digeo, Inc.
Gerry Van Zandt
503 -802 -4400
gerryvz@onpr.com

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