Digital Fountain Signs A License Agreement To Digital Fountain's FEC Technology with Nokia

FREMONT, Calif.--Aug. 8, 2005--Digital Fountain, Inc., a leading supplier of FEC (forward error correction) technology for reliable communications, today announced a major licensing deal with Nokia. The agreement will allow Nokia to incorporate Digital Fountain's advanced FEC technology in future Nokia products.

Digital Fountain's latest generation of patented FEC technology, DF Raptor(TM), supports the efficient delivery of data files or multimedia streams even in the presence of high packet loss. Significantly, as compared to other FEC technologies, DF Raptor minimizes processing requirements and the use of transmission bandwidth while providing essentially unlimited flexibility in loss protection. By enabling reliable delivery of content over a wide range of adverse network conditions, DF Raptor allows network operators to maximize service quality to their subscribers.

DF Raptor is an advanced and highly flexible FEC technology suitable for a wide range of applications and requirements. DF Raptor offers:

• A highly scalable media delivery solution ensuring the complete and error-free reception of content
• Lightweight software-based solutions with low processing requirements for multimedia streaming and data transfer applications
• Flexible parameter and implementation choices to best suit actual levels of packet loss as seen by the end user
• Low overhead for bandwidth efficiency
• High code efficiency in correcting lost packets
• Equal protection to all end users irrespective of individual end user packet loss patterns

A version of DF Raptor has recently been selected by 3GPP, the Third Generation Partnership Project, as a component of the worldwide standards for 3rd-generation (3G) high-speed wireless networks. DF Raptor is part of the first release of the Multimedia Broadcast Multicast Service (MBMS) standards, enabling 3G wireless broadcast video and file transfer services. By protecting MBMS signals from packet loss, DF Raptor enhances the overall user experience and assures the service provider that multimedia content will be delivered in its entirety without glitches or defects.

About Digital Fountain

Based in Fremont, California, Digital Fountain develops and licenses advanced FEC (forward error correction) technology to enhance the quality of communications over data networks. Digital Fountain's patented DF Raptor FEC technology improves multimedia streaming quality, ensures timely delivery of data, and enables the creation and development of new communications services. DF Raptor is used today in a variety of enterprise, military, and consumer devices and applications, supporting both wired and wireless telecommunications networks. For more information, visit Digital Fountain's Web site at www.digitalfountain.com.