HaiVision and Video Furnace Merge to Deliver Unprecedented End -to -End Network Video Solutions

HaiVision and Video Furnace Bring Together the Best H.264 Encoder Technology With the World's Most Intelligent IP Video Distribution System

MONTREAL and CHICAGO - March 2, 2009 - HaiVision Systems Inc., the world's leading vendor of high -performance H.264 encoders and codec systems, and Video Furnace Inc., the market leader in IP video delivery software solutions, have signed a definitive agreement to merge and become HaiVision Network Video. Each company brings industry -leading technology to the merger, and together they offer the only end -to -end high -definition (HD) H.264 IPTV platform for education, corporate, medical, and military video -over -IP distribution systems.

"The combination of HaiVision and Video Furnace technologies delivers the most advanced solution for H.264 IP video distribution," said Mirko Wicha, president and CEO of HaiVision Network Video. "Our integration partners and customers are very excited about having a single -vendor solution in this fragmented market space."

HaiVision develops the highest performance H.264 encoder hardware, which incorporates the company's MAKO -HD codec to deliver 1080p HD over IP networks with an imperceptible 70 milliseconds of end -to -end latency. Both HaiVision and Video Furnace are committed to advancing the IP video industry while promoting the universal adoption of H.264 as the HD standard.

"This merger combines advanced hardware and software expertise that is unmatched in the industry," said Joe Gaucher, Video Furnace founder and HaiVision's new CTO. "Our combined development capabilities will pave the way for the future of IP video delivery."

Video Furnace develops the industry's most powerful, elegant, and mature IP video distribution system, which includes full recording and video on demand (VOD) functionality. The Video Furnace system delivers HD H.264 IP video to both InStream™, the world's only "zero footprint," cross -platform fully encrypted client -server player and channel guide system, and the VF -STB, a high -performance HD set -top box. The InStream player is unique in that it requires no software installation on client computers, enabling secure, simple, and painless IP video deployments.

"The performance of the integrated solution from HaiVision Network Video and its value proposition are outstanding," said Terrell Coble of The Whitlock Group, which is supporting a substantial deployment of HaiVision MAKO -HD encoding technology and the Video Furnace system for simultaneous distribution of live media to set -top boxes and desktop viewers at a key Fortune 50 client. "The technology integration is first -class. The quality of the product, its ease of use, and its high interoperability make this an outstanding IP media delivery solution."

Complete information on HaiVision products, including recent case studies and application notes, is available at www.haivision.com/account/downloads/.

Complete information on the Video Furnace product suite is available at www.videofurnace.com.

See the combined HaiVision Network Video H.264 IP video solutions at NAB, April 20 -23 in Las Vegas, booth SL4126.

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About HaiVision Network Video
Based in Montreal, QC, and in Chicago, IL, HaiVision Network Video is a private company and a world leader in delivering the most advanced video networking technology and IPTV solutions. HaiVision's products are deployed worldwide within the foremost Fortune 100 companies, in the most rigorous military and defense applications, in healthcare facilities for video collaboration and training, for education and remote learning, in interactive broadcast applications, IPTV, and within the world's leading TelePresence suites. HaiVision distributes its products through value -added resellers, system integrators, distributors, and OEMs worldwide.


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