Zaxel Introduces ZLC 2.3.

Sunnyvale, CA (April 16, 2005) — Zaxel Systems Inc. today introduced to the video and data world at NAB 2005, ZLC (Zaxel Lossless Compression) 2.3. With the advent of High Definition Television, D-Cinema, 2K and 4K image editing, this leading-edge technology is a must.

Zaxel's ZLC is a patented, mathematically lossless video codec offering powerful and practical solutions in the professional server product line. The ZLC codec algorithm consists of three stages of compression (and since the Codec is symmetrical, three stages of decompression). Part of this technology, which allows for the prediction of the value of the pixel, is based on previously seen pixels. This patented technology allows the computation of the difference between the predicted value and the actual value.

This means real time record and play and no latency. The ZLC Software Codec is optimized to run on a standard Windows platform with single CPU for Serial Standard Definition, DUAL Xeon CPU for High Definition Video and Quad CPU's for 2K and 4:4:4. Zaxel guarantees bit-for-bit restoration through multiple codec cycles.

ZLC compresses and decompresses digital video without any loss of data. Bit-for-bit restoration is guaranteed at any raster, any resolution, any frame rate, and at any bit depth. Achieving an average lossless compression ratio of 2.7:1 currently, Zaxel's goal is to achieve an average guaranteed compression of 3:1 in the long term. Users don't have to reinvest in hardware; they simply upgrade to the newest level of performance by installing the new software on the existing Zaxel Windows Platforms.

The ZLC enables substantial savings in time, bandwidth and storage capacity, which, when coupled with Zaxel's most competitive price structure, offers end-users an extremely attractive alternative to the established uncompressed products on the market.

Dr. Norihasa Suzuki, President & CEO of Zaxel Systems Inc., states, "The marketplace is rapidly changing, and no longer are proprietary expensive systems seen as a viable solution. Users want to save money and time in their video workflow and capture the uncompressed-quality video in a cost-effective way. They cannot compromise on quality, therefore they require lossless compression, and often they want to capture multiple streams of video to a single PC, which they can do with our ZLC. Users want the peace-of-mind that comes from using a system with "off-the-shelf" hardware, and we're committed to meeting their needs, especially as they move into new arenas such as D-Cinema and 2K/4K editing."

About Zaxel Systems, Inc.
Founded in 1998, Zaxel Systems Inc. corporate headquarters is located in Sunnyvale, California. From HD, 2K & 4K real time disk recorders, servers & players to SAN and NAS real-time I/O units, Zaxel is committed to deliver highly reliable, cost effective, customer friendly and feature rich products to the television and digital film industry.

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For more information, please visit www.zaxel.com.

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