“While 4K will be the first big push for HEVC, we also believe that HEVC will be adopted over the next few years to achieve lower transmission costs for SD and HD, particularly for IPTV and mobile,” added Pallet. “This will generally require new hardware, and availability of native HEVC decoding in consumer products (including cell phones, where software decoding would lower battery life). As a result, we believe that the timeframe for this adoption will be longer-term than that of HEVC for OTT 4K delivery.”

Also in a Tweet from David Foley, Senior Technologist

@davidrfoley: 4k using h.265 hevc is coming and it looks amazing. Huge reduction in bit rate. Now just need hevc hardware out there. #nab

I ask IR about this in an email When he tweeted this.

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Original Message

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From:
Sent: Wednesday, April 10, 2013 3:03 PM
To: denise@nanotechent.com
Subject: Investor Question

Hi Denise, one question if you don't mind please, if you can answer for me.

David tweeted the following quote today:

@davidrfoley: 4k using h.265 hevc is coming and it looks amazing. Huge reduction in bit rate. Now just need hevc hardware out there. #nab

Is this hardware something NTEK will be or is working on currently?

Thank you for all of your assistance.

On Apr 10, 2013, at 5:32 PM, "david@nanotechent.com" wrote:

There are several vendors out there that will start implementing these decoders into consumer devices starting the second half of this year. We won't be developing this type of hardware, it's already very far along. We'll be developing updates to our software to support this.