StarGuide Digital Networks is a leading provider of digital multimedia distribution systems, providing state-of-the-art integration of satellite, Internet, and traditional telecommunications delivery technologies. StarGuide is already the leading provider of satellite and Internet transmission and distribution systems in the U.S. radio industry. StarGuide is also fast becoming a leading provider of high-bandwidth streaming audio and video satellite infrastructure and services for broadband Internet users. StarGuide is the creator of the CoolCast® Service - broadband's first true Internet broadcasting company.

In January 2001, StarGuide merged with Digital Generation Systems, Inc. (DG Systems) (NASDAQ: DGIT) DG Systems operates a private, nationwide digital network of distributing audio and video content that links thousands of advertisers and hundreds of advertising agencies with approximately 7,500 radio and over 1,500 television stations across the United States and Canada. DG Systems is a publicly traded Company on the Nasdaq (ticker symbol is: DGIT)

STARGUIDE TECHNOLOGY

Satellite Transmission Systems:

StarGuide® satellite transmission systems are utilized around the world to distribute all types of digital media, including both traditional broadcasting and Internet content. StarGuide® satellite transmission systems are capable of transmitting any type of digitized media, including audio, video, text, image, and data, in any format (DVB, MPEG, TIFF, G3, etc.), from or to any source, wired or wireless. StarGuide® transmission systems can also provide a powerful and flexible system for commercial or professional distribution of digital media through other wireless or wired links, such as ISDN, T-1, or terrestrial wireless systems.

In the case of satellite transmission, StarGuide® transmission systems combine these varying types of content (audio, video, text, images, or data) into one single satellite transmission that maximizes the amount of information transmitted through the satellite bandwidth capacity. This renders satellite transmission significantly more cost-effective, reliable, flexible, and powerful than other satellite transmission systems available. StarGuide® satellite transmissions systems are also readily upgradeable, scalable, secure, and controllable to direct individual transmissions or components of transmissions to one or many points as desired by the individual content provider or broadcaster.

Prominent customers whose broadcast networks rely on StarGuide® satellite transmission systems include:

United States

		ABC Radio Networks
		CBS
		Jones Radio Broadcasting
		Clear Channel
		Infinity Broadcasting
		Premiere Radio Network
		Westwood One Radio

Automated Media Distribution Systems

StarGuide's Transportal(tm) system is a reliable, easy-to-manage, flexible, powerful, and yet cost effective high-speed digital media delivery system ("store-and-forward" system). The Transportal(tm) system serves the broadcasting and content distribution industries with integrated and automated Internet, satellite transmission, and conventional terrestrial connectivity. StarGuide's proprietary Transportal(tm) system also allows broadcasters, advertisers, and other content-providers to automatically distribute and insert when and as desired regionalized or localized programming content and advertising into a non-regional or national broadcast.

StarGuide has deployed both its upgraded StarGuide® III satellite transmission systems and its Transportal(tm) satellite/Internet/telecom multimedia distribution system in accordance with contracts with a number of major U.S. broadcasters, including Clear Channel, Premiere Radio Networks, and ABC Radio Networks.

Superior Digital Audio Encoding Techniques

StarGuide's Musicam® digital audio encoders and decoders ("codecs") are utilized by leading broadcasters and professional audio content producers around the world. StarGuide's MPEG audio codec line includes the CDQ Prima(tm) codec, which provides pristine Musicam® MPEG digital audio compression and decompression. StarGuide's Musicam® digital audio compression technology is widely recognized to be superior worldwide and also is utilized under license by leading technology companies such as General Instruments (for use in the DirecTV system), Lucent Technologies, ComStream/Raydyne, and others.

CoolCast® Streaming Internet Audio and Video:

In addition to its StarGuide® transmission systems and its Transportal(tm) satellite/telecom/Internet automated distribution systems, StarGuide has developed its superior CoolCast® system and service for reliable, economical, and scalable satellite transmission of digital, broadcast-quality video and audio content to local Internet points of presence, where the content can be accessed by Internet subscribers who have broadband connections to those points of presence. StarGuide's proprietary CoolCast® technology offers programmers an effective means to deliver content to Internet users without the signal degradation typically encountered in streaming content delivered through the existing Internet backbone. Through their computers, Internet users having high-speed connections to their Internet Service Providers are able to experience high quality video and CD quality audio that can be matched to associated web-page information.

The CoolCast® Service presents a unique opportunity to take advantage of the rapid deployment of high-speed DSL Internet access and the associated consumer demand for true multi-media Internet experiences. CoolCast-delivered content can be used by businesses in various sectors to provide entertainment, product promotion, electronic commerce, and a variety of other services that rely on delivery of video and audio information to a large audience.

StarGuide Intellectual Property

StarGuide has an active policy of identifying, protecting, and, in certain fields such as selected audio compression applications, licensing its intellectual property. StarGuide currently has twentysix patents issued and numerous others allowed and otherwise pending domestically and abroad. StarGuide also is actively engaged in registering its copyrights and its trademarks and service marks.

Current StarGuide patents and patents pending include:

		The StarGuide® MX3 Multiplexer and II and III Satellite Receivers U.S. Patent No's 6,049,551, 6,212,201, 6,160,797, and 6,411,607; Australia Patent No. 697,851; additional patents allowed and pending;
		The StarGuide® Transportal 2000 Store-and-Forward System U.S. Patent No's 5,694,334; and 6,094,671, Australian Patent No. 720,245; Canada Patent No. 2,199,360; additional patents allowed and pending;
		Musicam® USA FieldFone Professional Portable Audio Codecs U.S. Patent No's 5,706,335, 6,128,374 and Des.373,767; additional patents pending;
		Digital Audio Error Concealment Techniques utilized in, e.g, Musicam® MPEG Professional Audio Codecs such as the CDQ Prima and Prima LT Codecs U.S. Patent No's 6,006,173, 6,351,727, and 6,351,728; additional patents allowed and pending;
		Musicam USA's CDQ Prima and Prima LT Professional Audio Codecs U.S. Patent No's 6,041,295, 6,332,119, and 6,339,756; additional patents pending;
		StarGuide® eDAS Satellite Receiver/Router Card and System U.S. Patent No's 6,160,797, 6,411,607; additional patents allowed and pending;
		StarGuide's CoolCast® Internet Broadcasting Technology U.S. Patent Nos. 6,262,982, 6,266,339, 6,101,180, and 6,411,616; Australian Patent No. 727,421; additional patents pending.

StarGuide is also the owner, through its Musicam USA subsidiary, of superior Musicam® audio compression technology. This compression technique is recognized around the world as the finest MPEG Layer II audio compression technique on the market. Musicam® compression technology is available only in Musicam USA professional audio codecs and products or systems licensed by Musicam USA. Licensees include Lucent Technologies, General Instruments (for use in DirecTV), Raydyne/Comstream, and others. Licensees of Musicam USA portable audio codec technology include Comrex and AV Communications (Australia).