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Zaxel Systems and Preferred Video Products Announce Partnership

Zaxel Systems and Preferred Video Products Announce Partnership

Sunnyvale, CA (June 2, 2005) - Zaxel Systems, Inc. today announced it has entered into an agreement with Preferred Video Products (PVP), where Zaxel Systems will be the exclusive worldwide distributor of PVP’s AVD DDRchitect for tapeless VTR replacement and the AVD TKEscort-E Telecine workflow accelerator product line. When equipped with Zaxel’s patented lossless compression, the requirement for storage is drastically reduced, making workflows more efficient without sacrificing picture quality.

Built around a multi-video format digital disk recorder, DDRchitect is designed for the resolution independent post-production marketplace to upgrade and streamline any production pipeline. Switched storage friendly, DDRchitect ships with the DREAM (Disk Recorder Edit Asset Management) suite of useful and innovative software applications custom coded for the feature film, television episodic, and commercial spot production workflows.

Zaxel's ZTLC is a patented, mathematically lossless video codec offering powerful and practical solutions in the professional server product line. The ZTLC codec algorithm consists of three stages of compression (and since the Codec is symmetrical, three stages of decompression). Part of this technology, which allows for the prediction of the value of the pixel, is based on previously seen pixels. This patented technology allows the compression of the difference between the predicted value and the actual value. This means real time record and play and no latency. ZTLC compresses and decompresses digital video without any loss of data. Bit-for-bit restoration is guaranteed at any raster, any resolution, any frame rate, and at any bit depth. The ZTLC enables substantial savings in time, bandwidth and storage capacity.

Charlie Taylor, Vice President of Sales at Zaxel Systems Inc., states, “I am pleased to announce this partnership with PVP. Their products, combined with our lossless compression option, provide customers with increased capabilities while reducing their storage dependence. With offices and distribution in various parts of the world, Zaxel is a strong partner for PVP and will move forward rapidly to promote the product line”.

Rich Lyons, President of Preferred Video Products, adds, “We are thrilled with our new Zaxel Systems collaboration. Combining our DDRchitect tapeless VTR replacement with Zaxel’s patented ZTLC lossless compression product brings an amazing additional dimension of efficiency and savings to our customers. Having Zaxel as our exclusive sales partner allows PVP to concentrate on staying at the forefront of the ever changing needs of our industry. We see this partnership as a win for all parties, most importantly for our customers, as well as PVP and Zaxel Systems.”

About Zaxel Systems, Inc.
Founded in 1998, Zaxel Systems Inc. corporate headquarters is located in Sunnyvale, California. From HD, 2K & 4K real time disk recorders, servers & players to SAN and NAS real-time I/O units, Zaxel is committed to deliver highly reliable, cost effective, customer friendly and feature rich products to the television and digital film industry.

About Preferred Video Products:
Preferred Video Products is a leading supplier of telecine, production and post-production solutions to the Teleproduction community. Founded in 1991, products from PVP are in daily use at the industry's major film and post-production facilities as well as in network broadcast studios. PVP has a proven track record of developing and selling innovative products to the entertainment industry and government agencies. For further information, www.pvpburbank.com
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For more information, please visit www.zaxel.com.