ViXS and Harmonic Demonstrate Technology Providing Pay TV and OTT Operators Significant Cost Savings for Deploying Ultra HD Broadcasts

HEVC 1080i and World's First Hybrid AVC / HEVC MPEG-DASH Streaming Technology Targeted at Pay TV and OTT Operators Deploying Ultra HD

TORONTO, ON --(Marketwired - January 05, 2015) - ViXS Systems Inc. (TSX: VXS), a pioneer and leader in media processing solutions, has teamed up with Harmonic, the worldwide leader in video delivery infrastructure, to demonstrate the world's first hybrid AVC/HEVC, MPEG-DASH technology -- called HybridDASH. By deploying a HybridDASH solution, providers will be able to reduce upfront capital costs by using existing equipment and infrastructure. The companies will also demonstrate 1920x1080 interlaced (1080i) broadcast video delivery using SAFF standard syntax, and HEVC compression which provides significant bandwidth and cost savings to operators. These demonstrations will highlight the latest in cost-effective, end-to-end HEVC broadcasting and streaming technologies for pay TV service operators and OTT video providers and will take place in the ViXS Meeting Place Booth #26055 in the LVCC in South Hall 2 at CES 2015.

As service and OTT providers plan for 4K Ultra HD HEVC broadcasts, reasonable capital costs are critical for the success of their deployment. HybridDASH technology allows service operators to broadcast a single multi-profile stream serving their existing High Definition (HD) AVC legacy Set Top Boxes (STBs) and/or mobile devices while simultaneously enabling 4K Ultra HD HEVC capable devices to select the profiles, delivering their full potential. By deploying a HybridDASH solution, these providers will be able to enable 4K Ultra HD services without incurring the large capital burden of replacing existing HD equipment. HybridDASH is the technology needed to alleviate the cost burdens associated with this transition.

Though viewed as an enabler of 4K Ultra HD resolutions and deeper color experiences, the HEVC Codec promises significant bandwidth savings on all formats including HD resolution content. As service operator's transition to HEVC, there will be cost pressures to re-use existing 1080i content and delivery methods requiring the need for a HEVC 1080i solution. Today a high percentage of video broadcasts and legacy HD content libraries remain in a 1920x1080 interlaced (1080i) format. With HEVC, there are significant bandwidth savings to be had with interlaced formats over progressive formats. This allows service operators to gain even more value from their bandwidth, while leaving their content provider contracts unaffected. The Harmonic and ViXS HEVC 1080i and hybrid MPEG-DASH end-to-end technology demonstrations are comprised of Harmonic's WFS file-based workflow engine and ProMedia® Xpress high performance transcoder with the ViXS XCode 6400 STB solution.

"Working with a broadcast market leader such as Harmonic is key in deploying the latest HEVC broadcast technologies to service and OTT providers," said Sally Daub, President and CEO, ViXS Systems Inc. "The XCode 6400 SoC has proven once again its flexibility and power to support the rapidly changing broadcast market demands, showcasing its strengths of future proofing solutions."

"ViXS has been a strong HEVC technology partner and has proven its ability to release 4K Ultra HD HEVC products to meet the standard compliance, time to market and advanced features required by service providers," said Thierry Fautier, vice president, solutions marketing, at Harmonic. "The technologies being showcased at CES 2015 will be a requirement for any service provider looking to provide 4K Ultra HD services in a near future."

About ViXS Systems Inc.

ViXS is the pioneer and market leader in designing revolutionary media processing semiconductor solutions for video over IP streaming solutions, with over 503 patents issued and pending worldwide, numerous industry awards for innovation and over 30 million media processors shipped to date. ViXS is driving the transition to Ultra HD 4K across the entire content value chain by providing professional and consumer grade chipsets that support the new High Efficiency Video Coding (HEVC) standard up to Main 12 Profile, reducing bandwidth consumption by 50% while providing the depth of color and image clarity needed to take advantage of higher-resolution content. ViXS' XCodePro 300 family is ideal for Ultra HD 4K infrastructure equipment, and the XCode 6000 family of system-on-chip (SoC) products achieve unprecedented levels of integration that enable manufacturers to create cost-effective consumer entertainment devices.

ViXS is headquartered in Toronto, Canada with offices in Europe, Asia and North America. VIXS™, the ViXS® logo, XCode®, XCodePro™, XConnex™ and Xtensiv™ are trademarks and/or registered trademarks of ViXS. Other trademarks are the property of their respective owners. For more information on ViXS, visit our website: www.vixs.com.

Forward-Looking Statements

Statements in this press release that are not historical facts constitute "forward-looking statements" within the meaning of applicable securities laws. Such statements include, but are not limited to, statements regarding ViXS' projected revenues, gross margins, earnings, growth rates, the impact of new product design wins, market penetration and product plans. The use of terms such as "may," "anticipated," "expected," "projected," "targeting," "estimate," "intend" and similar terms are intended to assist in identification of these forward-looking statements. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause ViXS' actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements.

FOR FURTHER INFORMATION PLEASE CONTACT:

For further information, please contact:
Charlie Glavin
ViXS Systems Inc.
T: +1 416 646-2000
cglavin@vixs.com

Nicole Marchand
Investor Relations, Consultant
ViXS Systems Inc.
T: 1 416 646-2000 ext. 3
Ir@vixs.com