--Motorola to Resell the Espial Evo TV Service Platform

Canadian IPTV middleware provider, Espial, has acquired Kasenna, a
US-based provider of IPTV and VOD technologies that has raised $90
million in funding since its launch in 2000, for an aggregate of
4,722,224 Espial common shares (i.e. around $6.5 million). According
to Espial (which saw its first-quarter revenues decline year-over-year
from CAN$2.2 million to CAN$1.3 million), combining its operations
with Kasenna's will result in a number of strong synergies, including:

• An increased number of tier-1 video service provider customers, a
  combined footprint of over 100 customers worldwide with no overlap,
  and a combined 2.4 million-plus IPTV licenses in deployment for one
  or more products (note: Kasenna's line-up of telco and cable customers
  includes Cavalier Telephone, CenturyTel, China Netcom, FastWeb,
  Kentucky Telephone, NTS Communications, SaskTel, Tennessee
  Telephone, Time Warner Cable, Charter Communications and
  Knology).
• Broader channel relationships with equipment vendors and systems
  integrators.
• A larger sales force and increased support and fulfillment capacity
  across the EMEA, Asia and Americas regions.
• A broader product portfolio that includes browsers, video servers,
  server and client middleware, and applications.
• A strong patent portfolio.
• Strong balance sheet, financial and cost synergies that will be
  accretive to Espial shareholders this year.

As a result of the deal, Espial will have seven directors, one of whom
will be nominated by Kasenna shareholders. "With this combination,
we've created a leading TV software company that service providers
worldwide can trust," Espial CEO, Jaison Dolvane, said in a prepared
statement. "Our service provider customers are looking for a partner
that they can rely on to help execute on their video plans in the coming
years. Together, the Kasenna and Espial team will provide an
unmatched level of experience and video expertise in the industry. We
will immediately begin integrating our operations. We expect this to be
completed before the end of this year and the acquisition to be accretive
in 2009. We will be working closely with all our customers and
partners to enhance our relationships and continue to support them as
we integrate our teams and products."

In other Espial news: The company says it has signed a software
license and distribution agreement with Motorola that gives the latter
the rights to resell the Espial Evo TV Service Platform to operators
worldwide. Espial bills the platform as allowing for a highly
customizable user experience; providing openness in order to support
service customization and application extensibility; offering flexible
service and business management functions to ensure a smooth
operational fit; and featuring an innovative middleware architecture
that lowers total cost of ownership. "This reseller agreement represents
another important milestone in Espial's channel development strategy,"
Espial's Dolvane said in a prepared statement. "Motorola brings a depth
of experience and leadership in providing digital video system solutions
and interactive set-top devices around the globe. They are well
positioned to capitalize on the increasing demand for IPTV and hybrid
IP-Digital Video Broadcast (DVB) systems. This business relationship
expands our global channel presence and fulfillment capacity. It further
strengthens the foundation we are building to scale our business to
intercept emerging opportunities in the service provider TV market. We
are pleased to have built-in support for the Motorola VIP series set-top
boxes as reference platforms for the Evo TV Service Platform. Looking
forward through 2008, one of our key business priorities will be to
educate, train and support the Motorola team on our technologies all
across the world. We will work with them to win new customers and
are actively engaged in opportunities in North America, Latin America,
Europe and Asia."