PRECEPT UNVEILS FIRST GENERAL-PURPOSE STANDARDS-BASED SOFTWARE PLATFORM FOR
RUNNING MULTIMEDIA ON EXISTING NETWORKS

CUPERTINO, CALIF., JAN. 22, 1996 -- FlashWare, the first general- purpose,
standards-based software platform that integrates video and audio into
existing packet-switched networks -- without costly hardware upgrades to
those networks or the desktop PCs on them -- has been introduced by
Precept Software, Inc. Formed in March 1995, Precept is the third Silicon
Valley startup for husband-and-wife entrepreneurs Bill Carrico and Judy
Estrin, who previously launched Bridge Communications and Network
Computing Devices.

Precept has also introduced IP/TV, the first in a family of client- server
applications for the FlashWare platform. IP/TV multicasts live or
prerecorded audio and video streams to an unlimited, user- specified group
of desktops over any IP-based network.

While Precept's Windows-based products are well suited for transporting
multimedia data over the global Internet, they are unique in being
designed specifically for enterprise environments, with their higher-
bandwidth "intranets" and the associated demands for quality transmission.
Key multimedia applications in these environments are corporate
communications, computer-based training, distance learning, desktop
videoconferencing, and audio/video production.

Precept CEO Estrin said, "Enterprise network managers have viewed the
coming of multimedia with trepidation because they know their networks
were designed to deliver traditional 'bursty' data very reliably, but with
acceptable delays to recover dropped packets. Those networks aren't set up
to handle 'streaming' audio and video data, which require higher bandwidth
levels and which absolutely must be delivered in real time. In multimedia
applications a lost packet is tolerable, but variation in delay is not.

"So far this problem has been addressed by using CD-ROMs at every desktop,
setting up parallel networks for audio/video, installing costly video
cards and compression hardware, or 'waiting for ATM.' Moreover, solutions
available for IP networks to date have focused on how data is compressed
-- not how it is transmitted over the network. Those solutions use
proprietary protocols, are targeted mainly for use on the relatively
low-performance Internet, and don't come close to addressing the
enterprise's need for high image quality or features such as audio/video
synchronization. Precept has taken a unique software-only approach, using
standard protocols, interfaces and compression techniques as the basis for
a suite of enterprise- quality multimedia networking software that works
over the Ethernet, Fast Ethernet, FDDI and IP WANs the user has in place
now."

FLASHWARE: ENABLING EXISTING NETWORKS FOR MULTIMEDIA

Precept's FlashWare multimedia networking software provides all the
necessary services to transport real-time, synchronized multimedia streams
over packet-switched networks. On the sending side of a data path,
FlashWare takes in data streams, compresses them (if required), packetizes
them, and sends them over the network via a WinSock interface TCP/IP
protocol stack. On the receiving side, it accepts incoming packets, turns
them into frames, decompresses them, synchronizes multiple streams (e.g.,
video and audio) as needed, provides feedback on reception quality to
senders and issues prioritization requests for network resources.

FlashWare has two major components: FlashWare Real- Time Transport Services
and FlashWare Multimedia Services.

FlashWare Real-Time Transport Services performs packetization, real- time
data transport (via the IETF standard Real-Time Transport Protocol, or
RTP), feedback on network conditions and reception quality (via RTP's
Real-Time Control Protocol, or RTCP). Quality of service - - the assurance
that certain traffic types receive priority (e.g., video over file
transfer) in obtaining network resources -- is provided by the Resource
Reservation Protocol (RSVP), an IETF standard in development.

FlashWare Multimedia Services, running on top of FlashWare Real- Time
Transport Services, performs data compression and decompression and
synchronization. It transparently handles interfaces to network protocols,
video/sound cards, and hardware and software codecs.

Precept also offers the optional WinSock-compatible FlashStack protocol
stack, an advanced high-speed 32-bit TCP/IP VxD stack optimized for
multimedia data. FlashStack implements IP Multicast, which conserves
bandwidth by sending data to a selected group of users simultaneously,
rather than to multiple users one at a time or to everyone on the network;
and the Internet Group Membership Protocol (IGMP), an associated standard
that lets individuals dynamically join or leave multicast groups. While
FlashStack provides a high-speed foundation for FlashWare, the WinSock-
compatible FlashWare also runs on most other popular TCP/IP stacks.

FlashWare may be installed as a Microsoft Windows Media Control Interface
(MCI) driver, allowing network multimedia streams to be manipulated as if
they were local. The FlashWare MCI driver can be used with Microsoft's
Media Player to "extend" CD-ROM capability across a LAN or WAN.
Implemented as a DLL, the driver masks the complexity of RTP, multicast
and other functions, letting developers focus on application content. (For
OEM developers of sophisticated network-oriented applications, who may
want to embed some or all of the FlashWorks functionality into those
applications, Precept also offers a complete C++ application programming
interface [API] for access to individual FlashWare components.)

Not tied to any single compression technique, FlashWare allows use of the
technology best suited to a given application. While Precept's
ITU-compatible H.261 software codec will ship with FlashWare, any Video
for Windows codec (e.g., Intel's Indeo) can be used. Thus the user can
automatically take advantage of new compression technologies as they
emerge.

FlashWare's RTP, IP Multicast and H.261 compression/decompression software
have been tested for compatibility with the MBONE, the experimental
Internet subset that has delivered real-time conferencing to some 10,000
users since 1993. Thus, with Windows Media Player, FlashWare can be used
as a PC-based viewing client for MBONE broadcast sessions, a capability
previously available only to UNIX users.

IP/TV: REAL-TIME VIDEO AND AUDIO DISTRIBUTION OVER TODAY'S NETWORKS

IP/TV, a client-server application that runs on top of FlashWare, delivers
full-motion video in a window on the user's PC -- without the use of
dedicated video cables, hardware boards, monitors or viewing rooms -- for
such applications as broadcast TV to the desktop, corporate
communications, Internet on-line marketing, video library access,
manufacturing process monitoring and surveillance systems. Live or
prerecorded digital video and audio streams are multicast to an unlimited
number of users over any IP- based network. Routability of network video
streams ensures wide- area accessibility, including distribution over the
Internet.

IP/TV contains three elements. The IP/TV Program Guide, used for program
scheduling and management, is based on World Wide Web technology and is
accessed via any HTML network browser. The IP/TV Server delivers programs
according to parameters (e.g., start time, file name) entered in the
Program Guide. The IP/TV Viewer presents a list of scheduled multicasts at
the recipient's desktop and displays the audio/video programs, providing
controls that let the user "channel surf" among programs.

Because the IP/TV Server and Viewer utilize Precept's FlashWare services,
IP/TV works with any Video for Windows-compatible hardware or software
codec, and enables playback of Video for Windows format (AVI) files.
Precept's H.261 software codec is included with the product.

With advanced monitoring and feedback features to ensure optimum reception,
IP/TV continually compares packet-loss rates among desktop viewer
applications using RTCP and indicates whether reception problems are
desktop- or network-related. IP/TV also provides facilities for collecting
management information, displaying network performance statistics, and
managing bandwidth utilization.

PRICING AND AVAILABILITY

FlashWare, priced at $249 for the client and $399 for the server, will be
available in March 1996 for Windows 3.11 and in second quarter 1996 for
Windows 95 and Windows NT. The optional FlashStack protocol stack is
priced at $39 (client or server) when purchased with FlashWare, with the
same availability dates.

IP/TV (including FlashWare), is priced at $349 for the client, $1, 499 for
the server, and $499 for the Program Guide. IP/TV will be available in
April 1996 for Windows 3.11 and in second quarter 1996 for Windows 95 and
Windows NT.

Precept Software, Inc., was formed in March 1995 to develop and market
standards-based networking software that address the emerging demand for
local- and wide-area networking of real-time multimedia information.
Precept products, including network "middleware" and applications for
Windows PCs, work over both the global Internet and private IP networks
and address such applications as video distribution, training, video/audio
conferencing, interactive cable TV, information kiosks and industrial
control. The privately held company has raised $6.4 million in venture
financing.
 
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