Press Release

Teranex and Qualcomm Create Real-Time Encoding Solution for Digital Cinema

9 Apr 2002SAN DIEGO

Qualcomm products mentioned within this press release are offered by Qualcomm Technologies, Inc. and/or its subsidiaries.

ORLANDO -- April 9, 2002 -- Teranex, Inc. and Qualcomm Incorporated (NASDAQ: QCOM) announced today the availability of a complete digital cinema compression solution based on Qualcomm's ABSolute™ cinema-quality compression algorithm, providing a real-time, high quality, end-to-end encoding/mastering solution to the digital cinema market.

The Teranex digital media platform hosts the ABSolute cinema-quality compression algorithm to form a real-time "Compression Engine." Already in wide use in post-production houses around the world, the Teranex platform employs a patented "pixel processing" method to perform sophisticated motion imaging algorithms in real-time. When the Teranex platform is configured as a "Compression Engine," it mates with a Qualcomm-developed Encoder Management System to create a complete digital cinema solution for the compression of digital motion pictures. Incorporating the Qualcomm ABSolute technology into the Teranex platform opens the industry-leading format for use by a wide range of customers.

"We are thrilled to work closely with Qualcomm to make real-time cinema-quality compression a reality. Enabling ABSolute technology to run on the Teranex platform is a tremendous breakthrough in fueling the commercialization of digital cinema. This versatile product offering gives post-production houses, film studios and service providers the ability to produce superb digital content that will improve the visual experience of movie fans around the world," stated Michael Baron, Chairman and Chief Strategy Officer for Teranex.

A first in the high-end video systems industry, the Teranex platform combines the software-based features and flexibility of a computer with the real-time power of a hardwired "black box." Like a computer, the Teranex platform hosts multiple video and image processing applications on the same hardware, expanding the value of the hardware investment through non-obsolescence, and is easily upgradeable. With its "processor-per-pixel" paradigm, the platform is able to operate in real-time, while delivering the highest possible quality.

"The combination of the Teranex platform and the efficiency and quality of ABSolute compression technology fills in a crucial missing link in the digital cinema chain," said Kim Koro, president of Qualcomm Digital Media. "The relationship with Teranex is very important to Qualcomm, as their platform has enabled us to get our compression technology to market quickly in a world-class product."

Qualcomm's image compression algorithm, ABSolute, is the groundbreaking technology employed by Technicolor Digital Cinema installations worldwide. ABSolute technology reduces the amount of digital information needed to represent cinema-quality digital images by as much as 35 to 40 times. These efficient coding rates save storage and transmission cost for digital cinema systems, while reproducing the director's vision with stunning clarity. The ABSolute algorithm divides a digital image into regions, or 'blocks,' that vary in size from 2x2 to 16x16 pixels, depending on where information resides within the frame. Each block is then transformed to the discrete cosine domain and processed to remove information from the image that will not be visible. The ABSolute decoder reverses this process, producing an image that is particularly suited to meet the requirements for digital cinema.

ABSolute is also well suited to a number of additional high-end digital media applications that require superior image quality along with economical implementation, including digital motion image cameras, post production equipment, digital mastering and archive systems, and high quality distribution networks.

About Qualcomm
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's Code Division Multiple Access (CDMA) digital technology. The Company's business areas include CDMA chipsets and system software; technology licensing; the Binary Runtime Environment for Wireless™ (BREW™) applications platform; QChat™ push-to-talk technology; Eudora® e-mail software; digital cinema systems; and satellite-based systems including portions of the Globalstar™ system and wireless fleet management systems, OmniTRACS® and OmniExpress®. Qualcomm owns patents that are essential to all of the CDMA wireless telecommunications standards that have been adopted or proposed for adoption by standards-setting bodies worldwide. Qualcomm has licensed its essential CDMA patent portfolio to more than 100 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and is traded on The Nasdaq Stock Market® under the ticker symbol QCOM.

About Teranex
Teranex is a leading provider of infrastructure solutions for digital image processing. The Company has developed the world's leading digital video processing platform coupling advanced software development and semiconductor technology to provide superior products, including format conversion and advanced noise reduction solutions for the broadcast, video and film industries. Teranex operates from headquarters in Orlando, FL and maintains offices in Los Angeles, CA; New York, NY; Philadelphia, PA; Denver, CO; and London, England. For further information, visit www.teranex.com

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Qualcomm, OmniTRACS, OmniExpress and Eudora are registered trademarks of Qualcomm Incorporated. ABSolute, QChat and BREW are trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated. All other trademarks are the property of their respective owners.