News Release

PacketVideo Powers Verizon Wireless' V CAST Music, World's First Direct-to-Phone Music Service Using Microsoft Windows Media and DRM

PV Handset Software Gives V CAST Music Customers An Unparalleled Experience For Accessing, Downloading and Playing Music

January 5, 2006

Jeffrey Nelson
Jeffrey.Nelson@VerizonWireless.com
908-306-4824Dann Wilkens
PacketVideo
wilkens@pv.com
858-731-5454

Diana Pailthorpe
O'Berry│Cavanaugh
dmp@oberrycavanaugh.com
406-522-8075

Consumer Electronics Show, Las Vegas, NV — PacketVideo Corporation today announced that their multimedia software powers handsets that deliver music content for Verizon Wireless' V CAST Music service, the world's first full-function mobile music service that lets consumers download music over-the-air to their phones and transfer music from their PCs within a single integrated application.

Verizon Wireless selected PacketVideo to create the pivotal multimedia software in the handset that enables Verizon Wireless V CAST Music customers to scan, preview, download or sideload and play digital music on their phones. PacketVideo's mobile media player integrates Microsoft Windows Media Audio and Windows Media DRM technology to assure consumers the highest-quality most secure mobile music experience available.

Available to customers starting January 16, 2006, the mobile music service will be initially available on three V CAST Music handsets with the music application developed by PacketVideo: the LG VX8100, Samsung a950 and Verizon Wireless CDM-8945 that will be available in weeks to come through 1,900 Verizon Wireless Communications Stores and Circuit City locations nationwide. The V CAST Music Store will offer songs from major labels and indie music provider, The Orchard, and is expected to offer more than one million songs by spring.

"V CAST Music is a major breakthrough in the enjoyment of music, and we are excited to once again be an important part of this new consumer mobile music service from Verizon Wireless," said Dr. James Brailean, CEO of PacketVideo. "Building on our success last year with V CAST multimedia service, we've again worked with Verizon Wireless, Microsoft, and top handset OEMs to create a high-quality experience for busy music lovers everywhere."

Jim Straight, vice president of wireless Internet and multimedia services for Verizon Wireless, said "V CAST Music is a major advance in music and in wireless, and PacketVideo's media software brings high quality Windows Media music directly to our customers' handsets. With V CAST Music, Verizon Wireless offers the world's most comprehensive mobile music service."

"The launch of V CAST Music is another milestone in Microsoft and PacketVideo's efforts to deliver new mobile media services for Verizon Wireless," said Amir Majidimehr corporate vice president, Windows Digital Media at Microsoft Corp. "V CAST Music is an innovative service that brings together the flexibility of wireless with the proven quality and experience, offered by Windows Media."

V CAST Music songs purchased on the handset permit a dual-download of the song, giving customers copies for both their phones and their Windows PCs. Customers can also purchase songs online at the Verizon Wireless V CAST Online Music Store, or take their own digital music from their Windows PCs and sync it to their handsets, using the most widely-respected and comprehensive DRM standard, from Microsoft, available in the United States today.

Unveiled yesterday at CES, V CAST Music is an expansion and enrichment of Verizon Wireless' V CAST service that launched one year ago, offering wireless broadband multimedia access including high-quality video, 3D games and music. Verizon Wireless' broadband network is the most robust wireless broadband network in the United States. V CAST coverage is currently available to 150 million Americans in 180 major metropolitan markets.

About PacketVideo
PacketVideo is the number one supplier of embedded multimedia communications software for mobile phones with more than 100 design wins for PV-powered handsets. The company's software enables mobile phones to watch breaking news, take digital pictures, record home movies, play back digital music and videos, and make two-way videophone calls. PacketVideo's global leadership is proven by strong relationships with mobile operators, dominance in design wins, and the millions of PacketVideo-powered multimedia phones shipped in markets around the world. PacketVideo was founded in 1998 and is headquartered in San Diego, Calif. For more information, visit www.pv.com.  

About Verizon Wireless
Verizon Wireless owns and operates the nation's most reliable wireless network, serving 49.3 million voice and data customers. Headquartered in Bedminster, NJ, Verizon Wireless is a joint venture of Verizon Communications (NYSE:VZ) and Vodafone (NYSE and LSE: VOD). Find more information on the Web at www.verizonwireless.com. To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at www.verizonwireless.com/multimedia.  

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