EIC Eicom

RNS Number:9574O
Eicom PLC
18 July 2005

18 July 2005

                                   EICOM PLC

              Strategic Position in Broadband Marketplace achieved

Eicom plc ("Eicom" or "the Company"), the digital TV channel provider, announces
that it has secured broadband distribution agreements with two UK based
broadband service providers, Global-MIX Limited ("GMIX") and GreenGrass Limited,
("GreenGrass"), for the high-speed Internet simulcast of its entertainment and
factual programming. These agreements offer streaming opportunities for three of
Eicom's digital channels.

GreenGrass provides an Internet based broadcast platform that offers a flexible
alternative to digital and terrestrial television networks. The platform
combines an advanced program guide (APG) with an innovative micro-payment system
enabling viewers to buy from broadcasters simply by watching their programming.
The agreement covers Eicom's music and entertainment based, Performance Channel,
currently also available on Sky and Telewest, as well as its horror films and
science and technology content, to be branded Performance Horror and Performance
SciTech.

GreenGrass will provide the consumer-facing 'front end' for broadband streaming
of the programming, as well as managing the streaming itself, digital rights
management and storage. Eicom will retain 80% of the net revenues after agreed
charges for these services.

GMIX provides access to a dedicated Multicasting Exchange which allows
television channels to be broadcast as live data streams using high speed
broadband. This agreement covers the simulcast streaming of the Company's
Performance Channel in exactly the same format as it is currently available on
Sky and Telewest. Revenues for this service will be generated through the sale
of Internet sponsorship opportunities and advertising and will be managed by the
Company's existing air-time sales house, DMS.

According to Ofcom, the industry regulator, almost 30% of UK households and
businesses have broadband currently, i.e. 8.1 million, and by the end of 2005
99.6% of households will be connected to a broadband enabled telephone exchange.
New connections are averaging 73,800 per week. Ofcom predicts that by 2010 more
UK homes will watch TV via broadband than via analogue broadcasts.

Steve Timmins, Chief Executive, Eicom plc commented:

"These agreements are very important for the positioning of Eicom in what is a
rapidly growing market and reflect our recognition of broadband as being a key
growth area and an opportunity for us to distribute our content to new
audiences. Broadband enables us to reach out beyond satellite and cable
distribution and allows us to access new revenue streams.

"We are in the vanguard of broadcasters who have identified broadband as a
'must-have' outlet. Both Channel 4, which announced that it was also planning to
simulcast its channels on broadband by the end of the year, and the BBC, which
is premiering BBC3 programmes on broadband, have realised the potential of the
medium and Ofcom's report confirms it. We see it as a wonderful opportunity to
increase our market share.

"We will be providing GreenGrass and GMIX with our content over the next few
weeks and intend testing the services and setting pricing levels before a
consumer launch in the autumn. We will also shortly begin testing the
distribution of our content on the BT Rich Media platform (as previously
announced in December 2004) after having resolved a number of digital rights
management issues. This means that we will have the ability to develop our
content on three platforms which will give us three additional income streams."

                                                                    

For further information contact:

Eicom plc
Robin Hague, Commercial Director                                  07005 964902

Credo Capital plc                                                
Nick Hooper                                                      020 7291 3724

Grant Thornton Corporate Finance
Fiona Reid                                                       020 7383 5100

Bankside Consultants
Sue Scott/Michael Padley                                         020 7367 8888

Notes for Editors:

Eicom plc is building a portfolio of digital channels, which includes the music
and arts service, Performance Channel, and ETV Horror as well as its Science &
Technology Channel, and the Job Channel, with the aim of increasing there
distribution in the UK and overseas via a wide variety of platforms including
satellite, cable and broadband.

RNDS                                   



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            The company news service from the London Stock Exchange
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