News release

NDS and HP Integrate HP MicrochaiVM Technology to Provide a Java™ Solution for Digital TV

Integrated solution will extend the functionality and application support for NDS conditional access and interactive customers

London, UK - November 5, 2001

Highlights:

• NDS conditional access (CA) and interactive customers will be able to dynamically download Java applications on current generation digital set-top boxes using HP MicrochaiVM software.

• First integration of HP MicrochaiVM technology with interactive TV solutions for set-top boxes.

• Patented HP Chaifreezedry technology dramatically shrinks the size of Java applications -- by up to a factor of ten.

NDS Group plc (NASDAQ/NASDAQ Europe: NNDS), a News Corporation (NYSE: NWS, NWS.A) company and the leading provider of conditional access systems and interactive applications for digital TV, and Hewlett-Packard Company (NYSE:HWP) today announced an agreement to integrate HP MicrochaiVM software with NDS's conditional access and interactive TV solutions. With NDS's Value @ TV™ interactive applications available in Java and running on HP MicrochaiVM software, consumers will benefit from an enhanced TV viewing experience. Consumers will gain flexibility in manipulating the format of content delivered to their TV screen (e.g., chart type and color of a stock quotation) and have access to popular Java applications (e.g., games) currently available on other devices - without upgrading their current set-top boxes.

"NDS has been looking at ways of integrating software onto our interactive solutions running on set-top boxes to enable customers to access a myriad of exciting and revenue generating Java applications. HP MicrochaiVM software allows us to do this by minimizing the application size, giving fast loading, low overheads and the ability to do this across many different platforms," said Dr. Jas Saini, Vice President Consumer Devices, NDS Group plc.

The integration of HP MicrochaiVM software with NDS's interactive TV solutions will allow network operators to deploy one Java application across multiple set-top box models and to leverage the pool of Java application developers and existing Java applications. HP MicrochaiVM software is designed to enable Java applications to be dynamically downloaded onto resource-constrained devices in bandwidth-restrained network environments. By using HP Chaifreezedry patented software algorithms, which is part of HP's MicrochaiVM environment, Java application memory requirements are reduced with no loss in application performance.

"Our relationship with NDS demonstrates HP's efforts in driving Java as an open platform for smart appliances such as personal information and digital entertainment devices," said William Woo, General Manager, HP Embedded Software Operation. "HP MicrochaiVM's industry-leading micro footprint, combined with HP Chaifreezedry application size reduction technology, maximizes the use of current and next-generation set-top boxes and bandwidth constrained networks."

HP MicrochaiVM and ChaiVM software are key components of the open and industry standards-based HP Chai Appliance Platform, which enables Java and Web-based service capabilities in intelligent appliances such as set-top boxes, smart handhelds, mobile phones, automotive telematics systems, and printers. HP MicrochaiVM software, the micro edition of HP ChaiVM software, is designed to comply with the published Java language specifications for the Connected Limited Device Configuration and related profiles of Java 2 Micro Edition. HP MicrochaiVM software, HP's smallest embedded Java, is ideal for low-powered processors where memory is at a premium and operating systems and graphic capabilities are varied. HP Chaifreezedry software shrinks the application footprint by up to one-tenth of its original size, thereby reducing download time and increasing bandwidth efficiency.

About HP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to all. HP had total revenue from continuing operations of $48.8 billion in its 2000 fiscal year. Information about HP and its products can be found on the World Wide Web at http://www.hp.com.

About NDS

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This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include employee management issues; the timely development, production and acceptance of products and services and their feature sets; the challenge of managing asset levels, including inventory; the flow of products into third-party distribution channels; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to the annual report on Form 10-K for the year ended Oct. 31, 2000, and subsequently filed reports. HP assumes no obligation and does not intend to update these forward-looking statements.

The statements contained in this release which are not historical facts may constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to the plans, projections or future performance of NDS, which involve certain risks and uncertainties, including risk of market acceptance, the effect of economic conditions, possible regulatory changes, technological developments, the impact of competitive pricing and the ability of NDS and its commercial partners to develop systems and solutions which meet the needs of the broadcasting industry in a timely and cost-efficient manner, as well as certain other risks and uncertainties which are detailed in NDS' filings with the SEC. Company or product names have been used for identification purposes only and may be the trademarks or registered trademarks of their respective companies.