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Cygnal Technologies announces deal with Source Cable and Wireless to deploy Tut System's Astria(R) Digital TV Solution
Source Cable and Wireless first Canadian cable operator to offer digital TV customers 100% digital content.
Jan 21, 2004
Cygnal Technologies Corporation today announced that Source Cable and Wireless ("Source") of Hamilton Ontario selected Cygnal to deploy Tut Systems' Astria(R) content processor for encoding all of their existing analogue television services, thereby allowing it to offer a 100% digital service launching February 2004. Source will become Canada's first cable television operator to offer all video entertainment services digitally to its customers using the Astria(R) digital headend platform from Tut Systems.

"It was very clear that Cygnal's solution utilizing Tut Systems' digital headend would provide the flexibility to deliver enhanced digital TV services over multiple types of networks," said Dan Campbell, President, Source Cable and Wireless. "Our 100% digital service will be the first of its kind in Canada. We will offer a service superior to that of our satellite competitors, while keeping analogue services present for customers choice. Source required a digital headend that met specific performance criteria, including: a proven track record in the field and being capable of delivering high-quality TV channels that allow us to offer our customers a compelling package of world class entertainment."

"Source's decision to deploy the Astria video platform demonstrates their leadership position in offering consumers a 100% complete digital cable package of entertainment services," said Jim Taylor, President, of the Service Provider Solutions group at Cygnal Technologies. "Cygnal is excited about deploying this digital TV platform with a visionary company like Source. The Astria(R) platform is the industry's leading choice for delivering high-quality digital TV over broadband access networks, and continues to prove itself the most reliable and flexible solution available."

The Leading Digital TV Platform

Tut Systems' digital headend platform is a carrier-class content processing solution for delivering digital TV services over any broadband network, including xDSL, hybrid-fiber coax (HFC) and fiber-to-the-home (FTTH). The Astria(R) family of content processors transforms, encodes and re-purposes both analog and digital broadcast feeds for delivery over IP, ATM and DVB- based networks. More than 60 service providers worldwide offer commercially deployed digital TV services from a Tut Systems digital headend.

About Cygnal Technologies Corporation

Cygnal Technologies Corporation is a Canadian leader in the design, installation, maintenance and management of wired and wireless communication networks. The Company offers a full range of technologies and solutions for service providers and enterprise customers. Cygnal has expertise in voice, video and data solutions over traditional and next generation converged IP networks.

Cygnal Technologies Corporation is headquartered in Markham, Ontario and has approximately 650 employees supporting end-user customers and business partners through 15 branch offices across Canada, including Vancouver, Edmonton, Calgary, Winnipeg, London, Burlington, Brampton, Toronto, Sudbury, Ottawa, Montreal, Quebec City and Halifax. Cygnal common shares are listed on the Toronto Stock Exchange under the symbol CYN. Cygnal Technologies can be found on the Web at www.cygnal.ca.

About Source Cable and Wireless

Source Cable and Wireless is a privately held cable television operator located in Hamilton Ontario, serving 18,000 basic cable, digital, wireless DOCSIS Internet, and high speed internet customers. Established in 1974 Source, formally known as Southmount cable, recently completed an infrastructure upgrade to 860 MHz which has been the foundation of recent service offerings including HDTV and the full digitization of the analogue channels. Source can be found on the web at www.sourcecable.ca

About Tut Systems, Inc.

Tut Systems, Inc. delivers industry leading content processing and distribution products for deploying next-generation data and video services over broadband networks. Tut Systems products are used by telecommunications, cable, entertainment and communications companies, as well as government agencies, to enable the delivery of broadcast-quality video over any broadband network. VideoTele.com, a division of Tut Systems, is a world leader in delivering digital TV over broadband networks.

Tut Systems is headquartered in Pleasanton, CA. with offices in Lake Oswego, OR and Oxford, UK. More information is available online at www.tutsystems.com. Contact Tut Systems at 925-460-3900, 503-594-1400 or 800-998-4888. NOTE: Astria(R) is a registered trademark of Tut Systems, Inc.

For further information

David J. Horsley, C.A., C.B.V.,
Senior Vice President and Chief Financial Officer,
Cygnal Technologies Corporation
dhorsley@cygnal.ca

Dan Campbell, President,
Source Cable & Wireless
(905) 574-6464
dcampbell@source.ca

Jeff Schline,
Tut Systems, Inc.
(503) 594-1364
jeffs@videotele.com