The new technologies enable the transmission of high-quality video over the Internet, and the economical transmission of digital video with virtually no deterioration in quality. KDD expects the new technologies to further promote the use of video information in multimedia services.

Profile of the new technologies is as follows:

(1)	Quality Motion - very slow video transmission for the Internet

KDD has developed Quality Motion, a video transmission method that offers far superior resolution and motion smoothness than the existing methods, even at a conventional telephone line's extremely low speed of 28.8 kbps.

The use of video on the Internet has been hampered by the large volume of video data which required too much transmission time. When information volume was compressed for easy transmission and handling, on the other hand, video quality was severely degraded by noise.

KDD has developed and is applying for patents on a technology for effectively eliminating the noise created by data compression (low-speed encoding) and a technology for improving video quality by adjusting the data volume allocation according to video content.

By employing these technologies, the Quality Motion enables the high quality video information services on the Internet. Such services include the newscasting and the distribution of various promotion videos of newly released CD, preview of movies or videos, and event publicity, etc.

KDD will begin the distribution of a beta version of Quality Motion video browser software for personal computer in late January and the fully-functional version at the end of the fiscal year. Both versions of the software will be available free of charge at KDD's home page (http://www.kdd.co.jp). KDD will collaborate with Internet service providers including its wholly-owned subsidiary, KDD Communications Inc., to provide video information on a trial basis to disseminate video information transmission services based on the new system.

KDD has completed a workstation-version video encoding software that is used to prepare video information. A version for PCs is due to be released by the end of this fiscal year. KDD plans to sell both versions through its wholly-owned subsidiary, KDD Technology Corp.

(2)	VIVID (Virtual circuit Video Duplicator), a remote digital video cassette duplicator using ATM network

KDD has developed VIVID, a device for economically duplicating digital video cassettes through communication networks as an ATM network, LAN, or the Internet with little quality deterioration.

When data is sent over a network (e.g., ATM network), it is split into units called cells or packets to make the transmission more efficient. On the other hand, this method creates many idle cells or packets that contain no valid data. With conventional video transmission technologies, it was difficult to use such unused resources to send high-quality video.

VIVID incorporates two principal technologies developed by KDD. The first technology controls digital VTR with a high degree of precision. The second technology, quickly, efficiently, and securely sends large video data. By systematically controlling these technologies and using the unused resources in ATM network lines, KDD has succeeded in the economical transmission of video with virtually no deterioration.

VIVID realizes high-quality video transmission on various networks regardless of line speed, from such economical best-effort type networks as ATM network, LAN, the Internet, and OCN to low-speed leased circuits.

The device employs JPEG* for video compression and can be combined with a nonlinear editor** that is becoming increasing popular in recording studios. VIVID allows the user to select the compression ratio to suit the purpose.

VIVID uses SSCOP*** suited to high-speed data transfer as the transmission protocol to eliminate communication errors. As an additional preventative measure against unexpected line problems, VIVID uses a KDD-developed video file transfer protocol to allow the user to resume the transmission of a file from the point where it was interrupted in the first transmission attempt.

KDD also plans to sell VIVID to the general public through its wholly-owned subsidiary, KDD Technology. KDD anticipates the new product will be used not only to send program contents but for promoting the economical on-line distribution of various high-quality video products.

* JPEG:	Compression and encoding method for high-quality static images.
** Nonlinear editor:	Device used to quickly edit video not on a tape but on a disk.
*** SSCOP:	File transmission protocol with high transmission efficiency suited to high-speed circuits.