LAKE OSWEGO, Ore., Jan. 4 -- Tut Systems Inc. (Nasdaq: TUTS), an industry leader enabling the delivery of next-generation data and video services over broadband networks, today announced that Telapex Inc., a Jackson, Mississippi based telecommunications holding company, has successfully deployed a multi-tiered IPTV video network with a central headend in Bude, MS to multiple regional locations in Roxie, Meadville, and New Augusta, MS.


Telapex's digital video headend deployment, powered by the Astria(R) content processor (CP), enables video operations for Telapex subsidiaries including Franklin Telephone, Branch Cable, and Delta Telephone Company. The central video headend serves affiliate customers across a variety of access platforms including copper and fiber from a common IP infrastructure. The architecture is one of the few in the world delivering video from single location to multiple access platform technologies. Telapex's "triple play" service, known as SNAP(SM), includes its new digital video service. The company offers its customers the high quality entertainment in a package of 98 TV channels and 30 digital music channels.


"As we searched for solutions to offer triple play services to our existing telco customers, we quickly realized there could be substantial operational savings by utilizing our wide area network and a single Astria headend to supply video to our existing cable customers who were currently being served by multiple traditional cable headends," said Larry Morrison, Telapex Chief Financial Officer. "We selected Tut Systems because they had a high quality system combined with the depth of experience required to seamlessly deliver pristine video across a wide area network to a variety of access technologies."


"Telapex is a company with the foresight to look for areas of convergence across their cable and telco infrastructures," said Mark Tiedeman, Vice President of Marketing for Tut Systems. "We are delighted to see that Telapex is making rapid progress towards achieving their long term business objectives. By providing triple play services to all customers regardless of the access technology to the subscriber's home, Telapex is making a sound operational and financial investment."


The Industry's Leading IPTV Platform for Service Providers


More than 150 service providers across North America, Europe and Asia deliver IPTV powered by Tut Systems digital headends. The Astria family of video processing platforms, which serves as the core of the company's digital headend solution, processes both analog and digital video streams from multiple satellite and local sources in a variety of formats. The Astria CP supports MPEG-2 and MPEG-4 AVC video compression, local ad insertion, forward error correction and provides real-time conditioning for distribution of video and audio over any ATM, IP, or RF broadband network. The Astria VSP provides the highest density, carrier class, single chassis product for the delivery of IP video over RF broadband access networks, including coax and FTTP (Fiber to the Premises).


About Telapex


Telapex, Inc., a Jackson, Mississippi based telecommunications holding company, provides, through its' subsidiaries, wireless, cable, local telephone exchange, broadband, Internet and long distance services. A privately held Mississippi corporation, Telapex, Inc. has provided telecommunications services to portions of Mississippi, and today in other states, for over 40 years, beginning with the 1959 purchase of a telephone system in the south Delta. Telapex, Inc.'s subsidiaries include Cellular South, Inc., Franklin Telephone Company, Inc., Delta Telephone Company, Inc., Branch Cable, Inc., and Telepak Networks, Inc.


About Tut Systems, Inc.


Tut Systems, Inc. delivers content processing and distribution products for deploying next-generation data and video services over broadband networks. Service providers, content providers and government agencies worldwide use Tut Systems solutions to deliver broadcast-quality video over broadband networks.


Tut Systems is headquartered in Lake Oswego, OR with regional offices across North America, Europe and Asia. For more information visit http://www.tutsys.com or call 971-217-0400.


NOTE: Astria is a registered trademark of Tut Systems, Inc.