First PVR Set-Top Box For New Zealand; SKY Chooses Pace Micro Technology as Partner for PVR Launch

This agreement will deliver a whole new way of enjoying televisionfor SKY subscribers. Building on SKY's position as the leading digitalpayTV operator in New Zealand, subscribers will now be able to takecontrol of their viewing in ways not previously possible. With thePace PVR, viewers will be able to pause live TV, fast forward orrewind programmes, view instant replays and use a range of time-shift,record and playback facilities such as automatically recordingmultiple episodes of selected series.

Martin Wrigley, the Director of Operations at SKY commented:"We're putting our subscribers in complete control of how and whenthey watch television. When we introduced digital television in 1998using Pace set-top boxes we were able to offer subscribers a completedigital multi-channel experience. Now we are giving them theflexibility to watch what they want, when they want and so furtheradding value to their viewing experience. From our ongoingrelationship with Pace it was clear that they were the obvious choiceto work with us to be sure of a smooth and successful roll-out."

Laurie Knight, General Manager of Pace Micro Technology(Australia) commented: "Pace has had a long standing relationship withSKY and we are becoming known for the quality, reliability andfeatures of our range of PVR set-top boxes both in Europe where we areleading supplier and now in Asia where we helped launched the firstPVR enabled payTV service in Australia earlier this year. We arepleased that we are able to build on this and continue to support SKYwith its development in New Zealand."

Pace is set to deliver its PVR units later this year with anarrangement to continue supply through into 2007.

About Pace Micro Technology

Pace Micro Technology plc (LSE: PIC) is a leader in digitaltelevision technology. The Company's primary focus is the developmentof innovative set-top box solutions for operators, broadcasters,telecommunications companies and retail markets worldwide.

Pace's head office is in Shipley West Yorkshire, with furtheroffices in the USA, Hong Kong, Germany and France. For furtherinformation, please visit Pace's web site at www.pacemicro.com.

About SKY Television

SKY Television (SKY), broadcasting via both UHF and DTH is NewZealand's pre-eminent Pay TV operator, offering a wide range ofsports, movies, music, on-demand and general content across more than80 channels. At end- December 2004 it had 590,777 subscribers,

SKY launched as a three-channel UHF service in 1990, with twofurther channels added four years later. SKY's UHF signal reaches 83%of the country's 1.4 million households. In December 1998 it launcheda digital DTH service, extending its reach to the whole country. Itpresently offers pay-per-view movies, live events and interactiveservices including Skybet, Skymail, the Weather Channel, games channelPlayin' TV and motor vehicle retail guide Go Auto. For furtherinformation, please visit SKY's web site at www.skytv.co.nz