Louisville, Colorado, October 17, 2006—Funai Electric Co., Ltd. has entered into an agreement with CableLabs® that allows Funai to implement the OpenCable™ host specifications, that enable the development and marketing of two-way interactive digital products that run the OpenCable™ Application Platform (OCAP™) middleware. In consummating the agreement, Funai joins other major consumer electronics manufacturers including Samsung, Panasonic, LGE, Thomson, Toshiba, ADB, Scientific Atlanta/CISCO, Motorola, and Digeo, as well as major chip manufactures such as Broadcom, ATI, and ViXS.

This two-way agreement is called the CableCARD™ Host Interface Licensing Agreement (CHILA). The products developed in connection with this agreement will include OCAP, the middleware specification created by CableLabs for interactive applications. OCAP allows a variety of devices to run compatible applications delivered by cable operators, as well as applications provided by consumer electronics companies, program networks, and a growing population of OCAP software developers.

Licensed products also will include an interface for the multi-stream CableCARD™ (M-Card) removable security module. The M-Card module provides for the simultaneous decryption of multiple high-definition digital video streams, allowing manufacturers to build multiple-tuner devices capable of advanced functionality. This functionality could include digital video recorders having “watch and record” features, or digital televisions offering advanced picture-in-picture features. By encapsulating the local cable system-specific conditional access technology, CableCARD modules enable nationwide portability and retail sale of interactive digital cable products. When built with the CableCARD interface, Funai digital televisions will be compatible with the conditional access standards in the cable industry.

The CHILA agreement, together with its sister agreement for OCAP are available to any interested consumer electronics manufacturer. These agreements grant the intellectual property rights required for building interactive devices in compliance with the CableLabs OpenCable™ hardware and software specifications.

About Funai
Funai Electric Co., Ltd. was established in 1961 in Osaka, Japan. Funai today is engaged in the development, manufacturing, marketing and sales of information and communications equipment such as Printers, Digital Still Cameras, and audio-visual equipment, such as LCD TVs, PDP TVs, VCRs, DVD Players, DVD Recorders and Projectors. Funai has established a significant presence in the North American DVD market and has established a position as a leading supplier. Funai integrates audio-visual and communication technologies to create innovative products in the area of digital home appliances, and has a worldwide production structure with bases in Japan, People's Republic of China, Malaysia, and Thailand. The company is listed on the Tokyo Stock Exchange First Section and on the Osaka Securities Exchange First Section. Funai in the United States has marketing, distribution and after-sales services and has been awarded “The Supplier of the Year” by Wal-Mart and “The Vendor of the Year” by Sears.

About CableLabs
About CableLabs: Cable Television Laboratories (www.cablelabs.com) was founded in 1988 by members of the cable television industry. A non-profit research and development consortium, CableLabs delivers innovations that enable cable operators to be the providers of choice in their markets. Cable operators from around the world are members. CableLabs maintains additional web sites at www.cablenet.org and www.ebif.tv.

CableLabs® is a registered trademark of Cable Television Laboratories, Inc. Other CableLabs marks are listed at http://www.cablelabs.com/certqual/trademarks. All other marks are the property of their respective owners.