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MegaFon Selects RGB Networks to Launch New OTT Service

Leading Russian Mobile Provider Rolls Out 130 Channels Utilising RGB's Comprehensive Multiscreen IP Video Solution

SUNNYVALE, CA -- (Marketwire) -- 01/28/13 -- RGB Networks, the leading provider of scalable multiscreen IP video delivery solutions, today announced that MegaFon, Russia's second largest mobile operator, has selected and deployed RGB's award-winning Video Multiprocessing Gateway (VMG™) and TransAct Packager to provide a complete transcoding and packaging solution for its new over-the-top (OTT) video service.

MegaFon launched its OTT service in December 2012 with compelling interactive capabilities to not only respond to the substantial rise in mobile internet users nationwide, but also to retain and increase its 61.6 million subscribers, which represent a market share of 27.1 percent of Russia's mobile users. This digital TV product was created and is being developed by MegaLabs, a MegaFon innovation arm aimed at launching and monetizing new products and technologies to serve MegaFon subscribers.

"With our rapidly expanding subscriber base we needed the most flexible and reliable IP video delivery solution available to keep pace with customer demands and need for quality," said Vitaly Starodubov, COO at MegaLabs. "MegaFon's entry into the OTT marketplace significantly enhances our competitive position amidst the 'Big Three' of the Russian TV service market, and we hope to secure more than 1.5 million IPTV\OTT subscribers across all devices by 2015. OTT services are essential to the future of video delivery in Russia, and we needed a solution that could ensure our vision comes to fruition. RGB's technology perfectly meets our needs and adds value to our long-term business strategy."

The implementation was delivered through a key RGB partner and system integrator, the BCC Group.

"We received excellent support from both RGB Networks and its partner BCC, who provided us with exceptional service throughout the entire deployment process to ensure that the solution was up and running in record time," continued MegaLabs' Starodubov.

The VMG's scalable and reliable multi-stream processing capability represents a sound investment for future-proofing of services and met MegaFon's requirements to initially facilitate the delivery of high-quality content to iOS devices and IP set-top boxes, with support for Android devices planned for later. With its high performance transcoding capabilities, the carrier-class VMG works in tandem with the critical adaptive streaming functionalities of RGB's TransAct Packager, enabling MegaFon to seamlessly deliver OTT services to a growing selection of popular end user mobile devices without concerns for supporting growth in channels, resolutions, profiles or device types.

"We are very pleased to have helped one of Russia's largest and internationally acclaimed operators enter the OTT marketplace," said Ramin Farassat, Vice President, Product Marketing and Business Development for RGB Networks. "Known for being technically advanced, selection by MegaFon is a testament to our products' next-generation capabilities. We are delighted to play a part in enabling forward-thinking customers, such as MegaFon, expand their customer reach and ultimately improve their bottom line."

About MegaFon
MegaFon is a Russian universal telecommunication service provider. Established in May 2002, MegaFon became the first operator with a network covering all regions of Russia. The Company and its subsidiaries have licenses to operate in all of the Russian regions and in the Republics of Abkhazia, South Ossetia and Tajikistan. With over 64 million active subscribers, MegaFon manages the most sophisticated and technologically advanced digital and fixed line network in the country.

MegaFon was the first in Russia to launch 3G for commercial operations and is currently in the number one position among all operators in the provision of mobile Internet, and in the number two position as to the number of active subscribers in Russia. In 2012, MegaFon became one of the first operators to launch a 4G network in the LTE standard in Russia.

MegaFon is an active sports sponsor and is the Mobile General Partner of the XXII Winter Olympic Games and XI Paralympic Games to be held in Sochi in 2014.

About MegaLabs
MegaLabs is a wholly owned subsidiary of MegaFon, and its principal objective is to research, develop and bring to market innovative value-added services for MegaFon clients. MegaLabs is a centre for innovative developments and quick-to-market launch of value-added services in the areas of content and media, mobile finance, mobile advertising, M2M services and cloud services.

About BCC
BCC is a top Russian system integrator with more than a 1000 employees and annual revenue exceeding half a billion US dollars. BCC is headquartered in St.Petersburg with offices in Moscow, Krasnodar, Yekaterinburg, Novosibirsk and representative offices in CIS countries. The company's business is diversified and includes telecommunications, infrastructure, construction and consulting. BCC is one of the pioneers of interactive television in Russia. In 2004 BCC was first to launch the biggest country-wide IPTV project. First commercial Network PVR services were also implemented by BCC. Today the company develops its own software products as well as integrates best-in-class vendors' products to provide end-to-end solutions for telecom operators and content providers.
For more information, please visit our websites -- www.bcc.ru, www.mediastage.tv.

About RGB Networks
RGB Networks enables video service providers to migrate to a multiscreen environment for the delivery of linear and on-demand video over managed and unmanaged IP networks. Wide adoption of the company's IP video solutions is based on core strengths in transcoding, advertising and overlay insertion, and statistical multiplexing. RGB's solutions for video delivery to TVs, desktop and mobile devices are built to deliver the highest video quality at the best price-performance on the market -- they uniquely offer the density and scalability required to support the growing demands of consumers with integrated functionality that simplifies operators' network architectures and minimises operational costs. RGB's products are deployed by over 400 cable, telco, satellite, OTT and mobile operators in 40+ countries. Venture capital investment firms include Accel Partners, Comcast Interactive, Focus Ventures, Granite Ventures, Institutional Venture Partners, Kleiner Perkins Caufield and Byers, and Mitsui & Co. Venture Partners. RGB is a private, profitable company based in Sunnyvale, California with offices around the world. For more information, please visit our website -- www.rgbnetworks.com -- and IP video blog -- www.rgbnetworks.com/blog -- and follow us on Twitter @RGB_Networks.

RGB press contacts, EMEA:
Ginnia Cheng / Kasia Murphy
Johnson King
+44 (0)20 7401 7968
Email Contact

RGB press contact, Americas:
John Giddings
Mobility Public Relations
+1 (650) 245-2782
Email Contact

RGB corporate contact:
Catlin Walker
RGB Networks
+1 (408) 701-2734
Email Contact

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