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Press Release

Pace Micro Licenses Espial® Evo™ For Delivery Of Interactive Services In Innovative New Set-Top Box

May 24, 2005

•  Espial® Evo™, a beyond brandable™, entertainment-grade client middleware solution allows operators to create personalized, revenue generating IPTV applications and services

•  Integrated with the Pace IP215, the industry's first truly entry-level solution for H.264, Espial Evo delivers high-quality performance in a cutting-edge product

Ottawa, Canada — May 24, 2005 – Espial®, a leading provider of set-top box software and IPTV applications, and Pace Micro Technology (LSE:PIC), the world's largest developer of digital set-top box technology, today announced an agreement to embed the Espial Evo™ TV middleware and applications in the new Pace IP215 set-top box (STB). Espial Evo, through its innovative architecture, provides an unparalleled consumer experience by eliminating performance penalties associated with browsers such as progressive page loading and blanking. Espial Evo, building on its unique client middleware framework, includes applications such as Electronic Program Guide, Video on Demand, Walled Garden Portal, Settings and Browser.

Announced today, the Pace IP215 is the industry's first hardware H.264 IP set-top box. Together with the inclusion of the Evo modular application framework, this new set-top box will offer Pace customers an entry-level, robust, turnkey client solution.

Operators that select the Pace IP215 with Espial Evo will enjoy a degree of brand-ability and customization that they never had in the past. Espial Evo provides a ‘beyond brandable' experience, where the entire application, workflow and graphics can be customized and personalized using traditional web design tools. Add to this the Espial Evo animation engine, and the consumer UI experience extends way beyond traditional TV UI boundaries.

"Operators choosing the IP215 with integrated Espial Evo middleware will benefit from a set-top box that offers great performance and cutting-edge applications," says David Gillies, director of technology at Pace. "Evo's innovative middleware and Pace's ground-breaking IP215 are a natural fit, and will enable telcos and operators to deliver a wide range of TV-based services using a high quality, entry-level IPTV solution."

Leveraging the Espial Evo application framework, operators now have a client environment that can extend and grow with new applications and services. Espial Evo's unique architecture that separates the core application logic from the user interface design means operators can leverage the Evo Framework and focus on delivering differentiated, revenue-generating services

"Pace is a world leader in the STB market and we are pleased to be working with them to deliver exciting new technology, amplifying the user's television experience,” said Denise MacDonell , Espial's marketing director for IPTV middleware and applications. “With a sub-1MB footprint and the superior capabilities of Evo, Pace can deliver a high-performing product that provides maximum performance."

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About Espial

Espial is the leading provider of rapidly customizable software for set-top boxes and consumer electronic devices. Espial applications and enabling technologies include User Interface Design Tools, Application Management and Design Frameworks, and applications such as Video On Demand, Electronic Program Guides, Content Portals, and Web browsing. The company is the recipient of the Deloitte and Touche 'Fast 500' top companies in North America , two years running. Espial software is deployed and accredited for more than 100 consumer designs such as Motorola, Siemens, Sumitomo Electric Networks, Thomson, Philips, LodgeNet, OnCommand, S-Net Systems, and i3Micro Technologies. Espial can be found on the web at www.espial.com .

About Pace Micro Technology

Pace Micro Technology plc is a leader in digital television technology. The company's primary focus is the development of innovative set-top box solutions for operators, broadcasters, telecommunications companies and retail markets worldwide. Pace's head office is in Shipley, West Yorkshire , with other offices in USA , Hong Kong , Germany and France . For further information, please visit Pace's web site at http://www.pacemicro.com .

Media Contact:

Meredith Dundas
Marketing Communications Manager, Espial
(613) 230-4770 ext. 1142
mdundas@espial.com

Julia Ruane
Press Officer, Pace Micro Technology
+44 (0) 1274 537093
Julia.ruane@pacemicro.com

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