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KUDELSKI GROUP STATEMENT IN RESPONSE TO THE U.S. DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA RULING IN ECHOSTAR VS. NDS GROUP
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Cheseaux, Switzerland, May 16, 2008– Kudelski Group (SWX KUD.VX) issued the following statement in response to the U.S. District Court for the Central District of California ruling in the EchoStar vs. NDS Group:

The lawsuit filed by EchoStar and NagraStar (a joint-venture between EchoStar and the Kudelski Group) against NDS in California has come to a close. EchoStar and NagraStar won a jury verdict in its satellite piracy case against NDS Group. EchoStar and NagraStar alleged that NDS had hacked into its encrypted satellite TV broadcast signals. The federal jury in Santa Ana, California found Wednesday that NDS violated federal and state laws prohibiting piracy. EchoStar and NagraStar also prevailed on NDS' counterclaims that alleged that plaintiffs had obtained confidential trade secret information through improper means. Plaintiffs are also entitled to recover their legal fees from NDS. However, the jury awarded EchoStar only symbolic statutory and compensatory damages.

André Kudelski said: “EchoStar and NagraStar have won the case by having the jury verdict confirm NDS’ piracy of the DISH Network TV signals. Each of the three claims on which the jury found against NDS involves acts of satellite piracy. Each of these claims involves the unauthorized interception and decryption of EchoStar's encrypted television programming signals. We are pleased with the jury's verdict, which condemns NDS' illicit practices as violations of the California Penal Code and Federal Communications Act.”

About the Kudelski Group

The Kudelski Group (SWX: KUD.VX) is a world leader in digital security and convergent media solutions for the delivery of digital and interactive content. Its technologies are used in a wide range of services and applications requiring access control and rights management to secure the revenue of content owners and service providers for digital television and interactive applications across broadcast, broadband and mobile delivery networks. The Kudelski Group is also a world technology leader in the area of access control and management of people or vehicles to sites and events. It additionally offers professional recorders and high-end hi-fi products. The Kudelski Group is headquartered in Cheseaux-sur-Lausanne, Switzerland. For more information, please visit www.nagra.com

Contact:

Rodolfo Ciucci
Vice President
Head of Corporate Communications
Kudelski Group
D +41 21 732 01 81
F +41 21 732 03 00
rodolfo.ciucci@nagra.com