• Telespazio to deploy Ericsson's AVP 4000 system encoder for content distribution
• Ericsson supports Telespazio with introduction of new HD TV services within existing transponder space, meeting the rapidly evolving needs of its customers
• Ericsson AVP 4000 guarantees superior picture quality at all operating points in MPEG-2 and MPEG-4 AVC and all resolutions from SD to HD

Ericsson (NASDAQ:ERIC) ConsumerLab research from 2013 shows that HD quality contentis of paramount importance to viewers and that consumer desire for a greater choice ofpremium content is moving broadcasters and service providers to upgrade their existingdelivery infrastructures. In response to this trend, Ericsson has signed an agreement withTelespazio, a Finmeccanica/Thales company, to expand the company's current serviceoffering to include MPEG-4 AVC HD and SD channels, while maintaining existing MPEG-2SD channels at premium quality within the existing content distribution infrastructure.

Telespazio will benefit from cost savings as a result of continuing to use its existing Ericssonmultiplexer platform and current transponder space. The deployment of the Ericsson AVP4000 system encoder will give the company sufficient bandwidth to enable the introduction ofnew content distribution services. Ericsson's unique solution, delivered by its regionalbusiness partner Diem Technologies, is powered by the company's first ever professionalvideo processing chip and will provide best-in-class compression capabilities to Telespazio,allowing it to introduce its new HD and SD services in the most rapid and flexible manner.

"In order to consistently deliver the high quality content in high definition that we know oursubscribers want, it was imperative that we upgraded our existing content distributioninfrastructure. Ericsson was the natural choice, as we were able to leverage our existinglegacy platform to minimize costs, while launching additional MPEG-4 AVC SD and HDpremium channels," said Michele Aita, Platforms Engineering Manager, Telespazio. "Thesuperior overall picture quality for premium content offered by Ericsson's solution gives us anedge over our competitors, enabling us to maximize our revenue basis over the coming years."

The Ericsson AVP family of video processors has been very well received by broadcastersand operators around the world. It offers the highest performance and broadest capability inthe industry on a single platform across all applications, from SD to HD, 1080p50/60, 3DTVand Ultra High Definition TV (UHDTV), and all codecs, including MPEG-2, MPEG-4 AVC andJPEG2000, with 4:2:0 and 4:2:2, 8-bit and 10-bit all supported.

"Telespazio needed a solution that could rapidly evolve with the changing requirements forthe transmission of HD Premium content across Europe, North and South America, NorthAfrica and the Middle East. The deployment of the Ericsson AVP 4000, the most powerfulcompression platform of its kind, will enable the company to address many of the challengescaused by the continued consumer demand for high quality, high definition video content,"said Dr. Giles Wilson, Head of TV Compression Business, Ericsson. "Tests have proved thatEricsson is able to offer superior picture quality, and we are pleased that the expansion ofour partnership with Telespazio will enable the company to continue to deliver the quality ofcontent its customers expect."