Skystream Completes Second Round of Funding With FiveMillion Dollars From Industry Leading...

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--March 26, 1998--

IVP and Mayfield Fund Demonstrate Vote of Confidence in

SkyStream

SkyStream Corporation announced today that it has secured $5 million in new funding from two leading global technology investment firms.

SkyStream said the latest round of financing would be used to fund ongoing product development. The SkyStream product line is positioned to deliver revolutionary networking solutions to the broadcast industry that will surpass less capable, proprietary equipment.

"The strong response SkyStream has received from the marketplace continues to reinforce our business plans, and demonstrates the desire by broadcasters worldwide to have the flexibility of an open, industry-standard head-end infrastructure," said James Olson, president and chief executive officer of SkyStream. "IVP and Mayfield have demonstrated their commitment to our market strategy, technology and overall business proposition by making this investment in SkyStream."

"SkyStream has everything we look for in an emerging technology market investment - a seasoned management team, patent-pending technology and a real vision for the future of digital broadcasting," said Wendell G. "Van" Van Auken, III, general partner of Mayfield Fund.

"SkyStream's product isn't just another system with more bells and whistles," added Geoffrey Yang, general partner of IVP. "It creates an entire new product category revolutionizing the broadcast industry's infrastructure. Companies inventing new markets are the type of technology investments IVP seeks."

About SkyStream

SkyStream Corporation, the open broadcast networking company, is a technology innovator based in Mountain View, Calif. The company's line of SkyStream Integrator products seamlessly enables the integration of disparate digital data sources into a digital broadcast stream. Through a combination of patent-pending application technologies with open, industry-standard platforms, SkyStream delivers open broadcast networking solutions unmatched in scalability, flexibility, reliability and price/performance in the market today.

Founded in July of 1996, SkyStream received venture capital funding from the Mayfield Fund and Institutional Venture Partners, both of Menlo Park, Calif. The company is a member of the Digital Video Broadcast international standards body. For further information, please contact SkyStream at 650/390-8800 or visit the company web site at http://www.skystream.com. -0-

Note to Editors: SkyStream is a trademark of SkyStream Corp. Additional company and product names may be trademarks or registered trademarks of the individual companies and are respectfully acknowledged.

CONTACT: SkyStream Corporation

Lorraine Kolowich, 650/390-8866

lorraine@skystream.com

or

Wilson McHenry Company

Marcy Dockery, 650/638-3400

mdockery@wmc.com