Press Release Selects MPEG aacPlus from Coding Technologies for

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					Press Release
3GPP Selects MPEG-4 aacPlus from Coding Technologies for
Mobile Audio and Multimedia Services

Standardization establishes aacPlus as common denominator codec
between mobile music download, digital broadcasting, consumer
electronics and Internet streaming

Palm Springs/Nuremberg, September 28, 2004 — Coding
Technologies, the leading provider of audio compression for mobile
communications, consumer electronics and content distribution,
announced today that its aacPlus audio codec has been standardized by
3GPP as the codec for high quality content delivery. The standardization
by 3GPP is a clear sign for service operators, content providers and
handset manufacturers as they can now rely on a single open standard
technology for high quality audio services. By providing highest audio
quality at lowest possible bit rates, aacPlus is the key enabler for the
profitability of new services like mobile streaming or download, protecting
investments in these new services on a high level.
As the most efficient audio codec worldwide, aacPlus is established in all
market segments as the common denominator codec, paving the way for
the long-awaited convergence between digital broadcasting, mobile and
Internet streaming. Already in use for the music download services of O2
or Vodafone, aacPlus is widely adopted in digital broadcasting and
Internet streaming applications.
“The selection of aacPlus by 3GPP was the logical conclusion of what
became apparent in the market,” said Oliver Kunz, Vice President
Strategic Marketing, Coding Technologies. “Early adopters like O2 who
are already running an innovative new service incorporating aacPlus have
clearly recognized the value of this technology for their business.”
“As the first operator offering mobile music downloads, we are very happy
about the final standardization,” adds Richard Poston, Director Corporate
Communications, mmO2. “We’ve been really impressed by the excellent
balance of good audio quality combined with efficient use of bandwidth.”
“Efficient delivery of audio tracks is critical to our business,” said Bill
Valenti, CEO of Melodeo. “With the broad adoption of aacPlus through
3GPP, Melodeo can now deliver high fidelity-quality songs directly to
mobile phones in a file size as low as 500kb per song.”
“Full-length Music downloading have been showcased as the ideal
applications for 2.5 and 3G infrastructure, and aacPlus is the perfect fit,”
adds Guillaume Decugis, COO of Musiwave. “aacPlus was the key to
successfully launching our commercial Download solutions and services.
We got tremendous feedback from our launched customers like Vodafone
and will continue to use aacPlus for our coming new service launches.”
Said Michael Bornhäusser, CEO of SDC: “As an early adopter of aacPlus
for our customers O2, Vodafone D2 and Siemens mobile, we are very
happy about the standardization of this technology in 3GPP. It clearly
shows that aacPlus is the first choice audio codec for our market leading
SDC mobile DRM technology. Being part of the international standard
paves the way for music services to be the next big hit in mobile

Coding Technologies
Coding Technologies provides the best audio compression for mobile, broadcasting, and
Internet. SBR™ (Spectral Band Replication) from Coding Technologies is a backward and
forward compatible method to enhance the efficiency of any audio codec; putting the
"PRO" in mp3PRO and the "Plus" in aacPlus. Parametric Stereo from Coding
Technologies and Philips again significantly increases the efficiency of audio codecs for
stereo signals at low bit rates. Products from Coding Technologies are fundamental
enablers of open standards such as MPEG, Digital Radio Mondiale, HD Radio, and the
DVD Forum.

Coding Technologies is a privately held company with offices in Sweden, Germany, and
Silicon Valley. Founded in 1997 in Stockholm, the company later merged with a spin-off of
the renowned Fraunhofer Institute in Germany, the inventor of MP3. Coding Technologies’
customers include America Online, iBiquity Digital, mmO2, Nokia, RealNetworks, SK
Telecom, Thomson, Texas Instruments, Vodafone, and XM Satellite Radio.

mmO2 has 100% ownership of mobile network operators in three countries – the UK,
Germany and Ireland - all branded as O2. The company is a founding member of Starmap
Mobile Alliance, has operations on the Isle of Man (Manx Telecom) and owns O2 Airwave -
an advanced, digital emergency communications service

mmO2 has more than 21 million customers and some 13,000 employees. It reported
revenues for the year ended 31 March 2004 of £5.646 billion. Data represented more than
21% of total service revenues in the quarter ending 30 June 2004.
Melodeo is a Seattle-based mobile music technology company that has developed a highly
innovative client/server solution for delivering full length music tracks over-the-air to mobile
phones, in collaboration with wireless operators. Melodeo's technology, incorporating
aacPlus, will be launching via numerous carriers in Europe and the US during in 2004 and

Leading provider of mobile music entertainment services in Europe, Musiwave distributes
its services in 17 countries through more than 30 leading mobile telecommunications
operators and many leading handset manufacturers. The added value of Musiwave's offer
relies on the quality of content cleared of rights, state-of-the-art mobile technology and
marketing and content management expertise. The company has existing partnerships
with major record companies, including BMG, Sony Music and EMI, leading independent
labels like Edel, Sanctuary, Ministry of Sound and FGL, and other renowned entertainment
content providers. Musiwave has recently set up a subsidiary company in Hong Kong to
develop its business in Asia.

SDC develops unique DRM solutions to facilitate secure rich media content distribution
across the mobile and fixline chain. Its market leading unique Digicont Java DRM
technology, patented in 1996, protects all types of digital content for distribution across
multiple device types and operating systems, with full, integrated licensing and PKI
handling for super-distribution. SDC works alongside leading players in the DRM space to
deliver the promise of mobile content distribution, including BMG, Warner Music, EMI,
Sony Music, Universal, Sun Microsystems, Siemens Mobile, Digital World Services and

It is a member of the Open Mobile Alliance and MPEG 21. SDC's Java DRM accords with
the projected OMA Phase 2 standard, due to be available for mass implementation in late
2005. SDC Java DRM is used by O2 UK, Germany and Ireland, Vodafone D2 in Germany,
SFR in France and ExactMobile in South Africa to protect full-length music tracks. SDC is a
privately owned company headquartered in Basle, Switzerland.

Press contact                             PR agency Europe                           PR agency USA
Gerald Moser                              Anne Klein                                 Karen DeMarco
Coding Technologies GmbH                  Axicom GmbH                                mPRm Communications
Deutschherrnstrasse 15-19                 Junkersstrasse 1                           5670 Wilshire Boulevard Suite 2500
90429 Nuernberg - Germany                 82178 Puchheim - Germany                   Los Angeles, CA 90036
+ 49 911 928 91 14 (phone)                + 49 89 800 908 23 (phone)                 + 1 323 933 3399 (phone)
+ 49 911 928 91 99 (fax)                  + 49 89 800 908 10 (fax)                   + 1 323 939 7211 (fax)