News Release

T-Com Montenegro Launches IPTV Service with Scientific Atlanta Headend

Cisco Press Release

AMSTERDAM, The Netherlands, September 7, 2007 - Scientific Atlanta, a Cisco company, today announced that T-Com Montenegro (Crnogorski Telekom) will launch Internet Protocol television (IPTV) service in late 2007 using an extensive array of Scientific Atlanta® products to create an IPTV headend with an expected delivery capacity of up to 60 channels of standard-definition (SD) digital programming. The versatile new headend will help enable T-Com Montenegro, one of the T family companies of Deutsche Telecom, to acquire video content via satellite, off-air or from other networks, descramble the signals, encode the video streams using Moving Pictures Experts Group (MPEG)-4 Advanced Video Coding (AVC) and stream IP video to its customers.

"Flexibility and rapid time-to-market with our new video service are critical elements for T-Com Montenegro as we enter the video marketplace and launch this exciting new service in 2007," said Vuk Gojnic, director of network development at T-Com Montenegro. "We want our customers to be among the 4.5 million IPTV viewers in Europe that research indicates will be enjoying this high-quality service by the end of this year."

The IPTV headend, provided to T-Com through its ongoing relationship with Comutel, a Cisco Premier Certified Partner, will include a wide range of Scientific Atlanta products, including more than 60 D9034TM MPEG-4 AVC standard-definition encoders, nearly 70 Model D9844TM and D9850TM receivers, analog terrestrial receivers, network adaptation equipment, and the widely deployed Scientific Atlanta ROSA® Network and Element Management and Control System. In addition, Cisco and Scientific Atlanta are providing a wide range of comprehensive systems integration services, including installation, wiring, configuration, integration of third-party equipment, site acceptance testing, and product and system training for T-Com Montenegro.

Gojnic commented on the significant role played by T-Com's longstanding relationships with Comutel and Cisco as T-Com launched such a critical expansion of its services. "Local support, dependable service and reliable products are just part of what we wanted. We needed the peace of mind and confidence to move forward that comes from the ability to rely on the experiences we have had with Comutel and Cisco and the promise of benefiting from Scientific Atlanta's extensive video delivery expertise."

"As more wireline operators begin to launch video service, they are relying on Cisco's IP Next-Generation technology leadership and Scientific Atlanta's video delivery leadership," said Dean Rockwell, vice president and general manager, Digital Media Networks at Scientific Atlanta. "Video delivery is a complex process, and, because wireline operators must deploy such a wide range of new technology for the first time, it is important that they team with an organization that can help them successfully navigate through the challenges they will face."

About Crnogorski Telekom

Crnogorski Telekom is the principal provider of telecommunication services in Montenegro. The company's service portfolio includes fixed line telephony, data transmission services and various value-added products. The company owns 100% in two affiliates: T-Mobile Crna Gora is Montenegro's significant and most innovative mobile telephony provider, while Internet Crna Gora is the leading dial-up and broadband internet provider on the Montenegrin telecommunication market. Crnogorski Telekom operates as a separate company from the end of 1998, until which it was a part of PTT Montenegro. The company was privatized in 2005. Its majority owner is Magyar Telekom (76.53%), the remaining shares are publicly traded.