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Verimatrix Secures Successful Live and On-Demand Content for MegaLabs's SMOTRI+ Mobile App

VCAS for Internet TV Provides Robust Protection for Multiple Screen Sports Viewing

SAN DIEGO, CA -- (Marketwired) -- 03/27/14 -- Verimatrix, the specialist in securing and enhancing revenue for multi-network, multi-screen digital TV services around the globe, today announced that MegaLabs, a MegaFon innovation arm aimed at launching and monetizing new products and technologies to serve MegaFon subscribers, chose the multi-network Verimatrix Video Content Authority System (VCAS™) solution to secure its SMOTRI+ mobile application. SMOTRI+ offered users access to the broadcast of the Winter Games in Sochi, as well as exclusive content. Megafon is one of Russia's largest telecom operators, with more than 60 million active subscriber accounts.

SMOTRI+ enabled viewers to watch the recent Sochi Winter Games real-time and also offered the capability to review the defining moments of the Games via catch up/on demand. To secure this mobile content, MegaLabs built on its existing collaboration with Verimatrix where the company provides revenue security for its combined IPTV and over-the-top (OTT) video services.

"MegaFon continually strives to provide our users with the most interesting and relevant content, including live sporting events," said Andrey Koushnarev, director of content and media, MegaLabs. "With the world watching the Games, it was essential for MegaFon to deliver a high quality user experience, while also ensuring that our content and revenue were sufficiently protected. Verimatrix played an important part in this successful initiative by providing revenue security for the content regardless of how it was consumed."

VCAS for Internet TV provides an enhanced security solution for OTT services over networks using the HTTP Live Streaming (HLS) adaptive protocol. It enabled the delivery of Megafon's SMOTRI+ content to a wide range of screen types over wired and wireless networks. Megafon also relies on VCAS for Internet TV, along with VCAS for IPTV, to secure its hybrid IPTV and OTT video deployment, the largest deployment of its kind in Russia.

"We are delighted to have been a part of this landmark deployment," said Steve Oetegenn, chief sales and marketing officer, Verimatrix. "Securing live sports content is a major challenge, and we worked with MegaFon to develop a sophisticated combination of security and streaming technologies to optimize the quality, functionality and the consumer experience for SMOTRI+ users. We look forward to continuing our collaboration with MegaFon in the future."

About MegaFon

MegaFon OJSC is a leading Russian universal telecommunication service provider, operating in all segments of the telecommunications markets in Russia. The Company and its subsidiaries have licenses to operate in all of the Russian regions and in the Republics of Abkhazia, South Ossetia and Tajikistan. The Company was the first in Russia to launch 3G for commercial operations. In July 2012 MegaFon was awarded one of four ten-year licenses for the provision of 4G/LTE services throughout the entire Russian Federation and has already started providing these services in 50 different regions. In October 2013 MegaFon completed the acquisition of a 100% interest in Scartel/Yota, which hold significant 4G/LTE licenses, from Garsdale Services Investment Limited, its shareholder and a member of the AF Telecom group (see below). The Company is a leader in the provision of mobile Internet, and in the number two position as to the number of active subscribers in Russia. As a result of its acquisition of the Synterra Group, one of the leading Russian backbone operators, in September 2010, MegaFon substantially increased its fixed-line B2B and B2G businesses, as well as its provision of fixed broadband services In September 2012 the Company acquired the VAS Media group of companies, which was integrated with MegaLabs, its R&D subsidiary.

In 2009, MegaFon was selected as the Mobile General Partner of the XXII Winter Olympic Games and XI Paralympic Games held in Sochi in 2014.

About Verimatrix

Verimatrix specializes in securing and enhancing revenue for multi-network, multi-screen digital TV services around the globe. The award-winning and independently audited Verimatrix Video Content Authority System (VCAS™) and ViewRight® solutions enable cable, satellite, terrestrial, IPTV and OTT operators to cost-effectively extend their networks and enable new business models. As the established leader in cardless security solutions, the company has leveraged its innovative 3-Dimensional Security approach to provide harmonized rights for premium content delivery to a range of devices over new hybrid network combinations.

Maintaining close relationships with major studios, broadcasters, standards organizations and its unmatched partner ecosystem enables Verimatrix to provide a unique perspective on video business issues beyond content security as operators introduce new services to take advantage of the proliferation of connected devices. Verimatrix is an ISO 9001:2008 certified company. For more information, please visit www.verimatrix.com, our Pay TV Views blog and follow us at @verimatrixinc, Facebook and LinkedIn to join the conversation.

Smotri + application

Company OJSC "MegaFon" has created a mobile app "SMOTRI+" (like " second screen "), which was available for iOS and Android devices for the period from 06 February 2014 to 23 February 2014.

Users of this application will be able to view the broadcast competition XXII Winter Olympic Games in Sochi in real time. The application including 17 sports channels, as well as broadcast the Opening Ceremony, closing and medal awards.

The user can review the scoring moments of days gone by, lists the main and most interesting moments of the Games with the help of video logging technology that provides exclusive content. Also, the user can follow the medal standings; discuss sporting events with other fans-users in social media.

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