NEW YORK and LONDON, Oct. 29 /PRNewswire-FirstCall/ -- HIGHLIGHTS -- Revenue for first quarter up 25% to $204.9 million -- Operating income for first quarter up 31% to $58.3 million -- Diluted net income per share up 30% to $0.79 per share -- 78.6 million active digital TV smart cards -- 69.9 million cumulative middleware clients deployed -- 8.8 million cumulative DVR clients deployed

NDS Group plc ("NDS" or the "Company") (Nasdaq: NNDS - News), a majority-owned subsidiary of News Corporation that supplies open end-to-end digital technology and services to digital pay-television platform operations and content providers, announced today its results for the first quarter ended September 30, 2007.

Commenting on NDS''s performance, Dr. Abe Peled, Chairman and Chief Executive Officer of NDS said, "Our business has seen continued strong performance across the board as our deliveries of new technology grew strongly and our deployments in developing markets continued to gather momentum. NDS continues to expand its R&D and delivery organizations across the world to meet customer demand for new projects, many of which will yield revenue only from the next financial year onwards. NDS is investing in R&D as well as selected acquisitions to ensure that it will be in a position to offer the leading solutions to its customers in the rapidly changing media delivery landscape."

KEY FINANCIAL MEASURES Three months ended September 30, 2007 2006 Revenue (in thousands) $204,876 $164,162 Operating income (in thousands) $58,286 $44,590 Operating margin 28.4% 27.2% Net income (in thousands) $46,294 $35,088 Diluted net income per share $0.79 $0.61 KEY NON-FINANCIAL MEASURES Three months ended September 30, 2007 2006 Smart card deliveries (in millions) Quantity delivered in period 7.4 6.7 Authorized cards (in millions) Net additions 3.2 1.6 Number of authorized cards, end of period 78.6 66.6 Middleware clients deployed (in millions) Net additions 8.1 3.1 Cumulative deployments, end of period 69.9 44.7 DVR clients deployed (in millions) Net additions 1.5 0.7 Cumulative deployments, end of period 8.8 4.2 Employees Full-time equivalents, end of period 3,665 3,089

KEY DEVELOPMENTS IN THE FIRST QUARTER

-- Bharti Airtel, India''s largest cellular operator, has selected NDS''s market-leading VideoGuard? conditional access, MediaHighway? middleware, and a customized electronic program guide (EPG) for the company''s new direct- to-home satellite platform. Through these NDS solutions, Bharti Airtel gains the flexibility to introduce future enhancements including interactive applications and additional advanced services for subscribers.

-- NDS VideoGuard conditional access technology has been selected by Tianjin Broadcast & TV Network Co. Ltd., based in China, to protect its new digital cable service. NDS technology will enable Tianjin Broadcast & TV Network to develop an industry-leading digital platform capable of securely delivering enhanced, value-added services to cable viewers in a robust environment that will be able to meet Tianjin''s business needs now and in the future.

-- NDS announced an agreement with Vision TV, Ukraine''s first licensed DTH satellite pay-TV provider, to provide Vision TV with NDS''s VideoGuard conditional access and MediaHighway middleware, as well as an EPG.

-- China''s Anhui Radio and Television Network Company selected NDS VideoGuard for the launch of digital cable TV services for its subscribers in Anhui.

-- NDS announced an agreement to provide Serbia Broadband, the largest cable operator in Serbia, with an end-to-end system to secure and enable its national cable television platform. NDS already provides its VideoGuard Express(TM) system to Serbia Broadband''s direct-to-home satellite television service, which incorporates NDS'' conditional access, MediaHighway middleware and electronic program guide (EPG).

-- NDS announced the acquisition of CastUp, Inc. ("CastUp"), a leader in solutions for the management and distribution of video over the Internet. CastUp, a profitable and fast growing company, will provide NDS with substantial know-how and experience in online video delivery.

-- NDS has partnered with VBox and Cyberlink to deliver the first fully converged TV and PC platform to Israel''s "yes". In addition, NDS announced that "yes" has chosen to implement NDS VideoGuard PC(TM) to secure and enhance the functionality of its new web-based video content portal.

FINANCIAL REVIEW

Total revenue for the three-month period ended September 30, 2007 was $204.9 million, an increase of 25% compared to the corresponding period of the previous fiscal year.

Comparisons of revenue for the three-month period ended September 30, 2007 to the three-month period ended September 30, 2006 were affected overall by the relative weakness of the U.S. dollar over the periods. Approximately 52% of our revenue was denominated in currencies other than the U.S. dollar, principally pounds sterling and euros, during the three-month period ended September 30, 2007. We estimate that the weaker U.S. dollar favorably impacted our total revenue for the three-month period ended September 30, 2007 by approximately $8 million, or 4%, compared to what would have been achieved had foreign exchange rates been consistent with those prevailing during the three- month period ended September 30, 2006.

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