Company profile
　　The Kudelski Group (www.nagra.com) is the world leader in digital security. Its technologies are used in a wide range of applications requiring access control and rights management, whether for securing transfer of information (digital television over broadcast, broadband or mobile TV network, video-on-demand, interactive applications, etc…) or to control and manage access of people or vehicles to sites and events. The Kudelski Group is headquartered in Cheseaux-sur-Lausanne, Switzerland and its stock is listed on the Swiss Market Index.

Highlights
•  Internationally focused Swiss-based Group listed among the 27 blue chips in Switzerland (SMI Index)
•  In 2006, total income of CHF 756 million (roughly $ 650 million).
• Over 2'200 employees worldwide
•  Headquarters in Cheseaux, Switzerland – offices in Atlanta, Los Angeles, France, Germany, Spain, UK, United States, Brazil, Singapore, China
　　Nagravision, a Kudelski Group company, is the world leading independent supplier of value-added service protection and integrated solutions for operators and content providers. Its technologies are currently being used by more than 120 leading pay-TV operators worldwide serving over 84 million receivers with 40% market share in Pay-TV, raising to more than 95% in the DVB-H market, being deployed with the world-first DVB-H Mobile TV operators H3G; in the CMMB market which use STiMi technology, Nagravision has been selected by SARFT as CA partner and has deployed head ends in main cities in China.

Pioneering DVB-H Service Protection technologies
　　In May 2006, Nagravision deployed the world-first Mobile TV commercial service at 3 Italy, with Samsung and LG DVB-H production phones. After 6 weeks of operations, 3 Italy has announced signing up 111’000 users already. After 12 months of operations, the figure passed 700’000 MobileTV users, which represents already about 8% of penetration of their mobile base. It is a clear success to 3 Italia’s service offering, content, handsets and business model.
　　Last Fall Telecom Italia, Italy’s largest Mobile Network Operator with over 28 million users, launched its TIM TV DVB-H MobileTV commercial service, using also Nagra MobileTV solutions, with Samsung handsets. End 2006, Vodafone Italy launched its Vodadone SKY TV service over DVB-H, again secured by Nagravision, with LG handsets. In 2007, Nagravision has extended its footprint after having been selected by Bouygues in France and by entering commercially APAC with PMSI in the Philippines.
　　In parallel, Nagravision is involved in a number of Mobile TV trials: T-mobile has used Nagra Mobile TV CA technologies during their lead pilot in the Czech Republic. In Spain, Nagravision has successfully collaborated with abertis telecom in a pilot project with Spanish Mobile Network Operators, Vodafone, Telefonica and Orange. In Asia, Maxis Communications, Malaysia’s largest cellular operator, selected Nagra Mobile TV solution for a its trial, with full Mobile TV commercial launch expected at the end of the year. In the United States, CNN/Turner/Time Warner, one of the world’s leading US content providers, has acquired an end-to-end DVB-H Nagra Mobile solution for the development and evaluation of their Mobile TV offering. And finally, Nagravision has been selected by Hiwire to secure the deployment of its DVB-H trial service in the US.
　　So far, Nagravision mobile TV CA systems have been deployed in 4 sites for commercial launched, 6 sites for pre-commercial launched, over 10 sites for trial. Nagravision mobile TV CA is the one who has the most reference sites, the earliest commercial operation and the most real mobile TV subscribers.

First mover for CMMB technology
　　China Mobile Multimedia Broadcasting (CMMB) is a Chinese standard for Mobile TV that was developed by the Academy of Broadcasting Science from SARFT (Satellite  Terrestrial Interactive  Multiservice  Infrastructure), with the contribution of several other Mobile TV players including device manufacturers and NagraVision. With CMMB technology, people will be able to receive TV from anywhere in China with any type of device including mobile phones, Portable Media Players, portable TVs, Personal Navigations Devices or PC.
　　This standard is based on a homegrown transport technology known as STiMi (satellite and terrestrial interactive multiservice infrastructure). STiMi supports the S-Band (2635 ~ 2660 MHz) and U-band (470 ~ 798 MHz) and will use both satellites and terrestrial relays to deploy coverage.
　　In addition to the STiMi transmission technology, CMMB standard includes advanced features to enable Emergency Broadcast, Conditional Access and Data Broadcasting etc. As the partner of CMMB, Nagravision will provide CA system for SARFT to provide a secure solution to the pay-TV services and protect the revenues from SARFT.
　　According to SARFT’s requests, Nagravision will deploy 37 head ends across 37 capital cities or Olympic game cities through terrestrial transmitters before 2009; So far, Nagravision has a variety of security tokens (such as SMD, MicroSD or SIM) and has finished CA integration with several handsets, PMPs and design houses.