Tut Systems Expands Sales Channels Into China

Tut Systems Expands Sales Channels Into China

February 16, 2006

Partners With IPTV-CETC to Develop High-Growth Chinese IPTV Market

    LAKE OSWEGO, Ore., Feb. 16 /Xinhua-PRNewswire/ -- Tut
Systems, Inc. (Nasdaq: TUTS), an industry leader enabling
the delivery of next-generation data and video services
over broadband networks, today announced that it has
expanded its distribution relationships in the Chinese
telecommunications market through a relationship with the
CETC-IPTV.

    CETC-IPTV, a part of CETC (China Electronic Technology
Group Corporation), has a long history of providing
high-technology solutions to telecommunications and cable
operators throughout mainland China and has more than
50,000 employees.  CETC-IPTV will use its vast sales
network and system integration capabilities throughout
China to deliver IPTV solutions powered by Tut Systems
Astria(R) content processor (CP).  CETC-IPTV is responsible
for researching, consulting, integrating, and selling
solutions for the rapidly expanding Chinese IPTV market. 
In November 2005, Light Reading predicted that China will
account for more than 25% of the world's IPTV subscribers
by 2010.

    "In identifying a solutions partner for our IPTV
business, we looked for a market leader with advanced
technology and a strong history of successful, real-world
deployments," said John Wu, Vice Chief Engineer of
CETC-IPTV.  "With an unparalleled, global IPTV
customer base dating from 1999, Tut Systems is uniquely
qualified, and we are pleased to be working together with
them in the fast-growing IPTV market in China."

    "CETC-IPTV is a welcome addition to the network of
distributors that we have built over the last decade in
China," said Bob Noonan, Vice President of Worldwide
Sales and Service for Tut Systems. "The explosion of
interest in IPTV in China is a great opportunity for both
Tut Systems and CETC-IPTV and we look forward to a long and
successful partnership."

    The Industry's Leading IPTV Platform for Telcos

    More than 160 service providers across five continents
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 Tut Systems, Inc.

    Tut Systems, Inc. delivers advanced content processing
and distribution products as well as comprehensive system
integration services 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. 

    For more information, please contact:

     Hilary Goetz of Tut Systems, Inc.
     Tel:   [phone]
     Email: [e-mail]

SOURCE  Tut Systems, Inc.