OMNEON VIDEO NETWORKS SECURES OVER $23M IN FUNDING FROM NORWEST VENTURE PARTNERS, LUCENT VENTURE PARTNERS, ACCEL PARTNERS, MAYFIELD FUND AND IGNITE GROUP

CAMPBELL, Calif. - July 7, 1999. Omneon Video Networks, the networking and storage company for television broadcast and Internet applications, announced today the completion of a $23.7M second round of financing. The new round was led by Norwest Venture Partners and included new investors Lucent Venture Partners and The Ignite Group. First round investors, Accel Partners and Mayfield Fund, were also significant participants in the second round. The company has now raised more than $32M of venture capital and corporate funding.

"This amount of backing from such leading investment and corporate partners highlights the excitement surrounding the Omneon Video Area NetworkTM," said Lawrence Kaplan, president and CEO of Omneon. "We are fortunate to have this level of confidence from prominent investors who understand the opportunity afforded by an innovative new video networking and storage infrastructure for television and Internet applications."

"Norwest is committed to funding forward-thinking companies redefining the communications infrastructure," said Promod Haque, managing general partner of Norwest Venture Partners. "Norwest sees Omneon positioned to be a leader in its industry. By leveraging advances in networking and storage hardware and software, Omneon will help companies bridge the gap between the rich experience of television, film and video and the user-driven experience of the Internet. We look forward to helping build relationships and partnerships between Omneon and Norwest's portfolio of communications companies."

Omneon customers are content producers and distributors who recognize the need to more effectively produce content and manage multiple distribution channels- including the Internet. Producers and distributors need a networking and storage infrastructure that enhances the production and compiling of content for any form of distribution. The Omneon Video Area Network is the operating platform for the next generation of content production and distribution.

The Video Area Network is a unique integrated approach to networking and storage. It enables customers to route, store and share digital audio, video and any type of related data throughout and among facilities. Omneon products include packet switches, network interfaces, storage systems, and software that together form the Video Area Network.

"The Lucent investment in Omneon Video Networks reinforces our support for the company in its quest to build the next generation networking and storage infrastructure for applications ranging from streaming media to high definition video," said Maureen Lawrence, general partner of Lucent Venture Partners. "They clearly know the television and Internet broadcast marketplace, and are primed to succeed in a space where no company has carved its niche."

"Omneon Video Networks' strategy incorporates new uses of professional quality video and related media for Internet applications where enormous opportunities exist," said Peter Wagner, general partner of Accel Partners. "They are the technology landscape to enable a faster, more scalable implementation of rich media distribution on the Internet."

"Omneon has demonstrated success in the first round, proving their knowledge of the market and due diligence through solid research," said Wendell "Van" Van Auken, general partner of Mayfield Fund. "We are confident investing again in the second round. Omneon has a solid business plan and a top-notch team with an industry award winning history for innovative products that still hold market leadership positions today," he added.

Omneon Video Networks won industry recognition from press and customers worldwide with the recent demonstrations of Video Area Network technology. Millimeter magazine awarded Omneon its Tommy Award (named after famous inventor Thomas Edison) for the invention of the Video Area Network. Television Broadcast magazine chose Omneon Video Networks for the National Association of Broadcasters (NAB '99) Editors' Pick of Show award.

For more information, contact Omneon Video Networks in Europe at +44 (118) 965 7782, in the US at 408-558-2100, or on the Web at www.Omneon.com.

About Norwest Venture Partners

Norwest Venture Partners, founded in 1961, is the premier venture capital business partner for emerging growth IT companies. The firm actively manages $850 million in investments, and has raised more than $1 billion since its inception. Norwest Venture Partners has a broad information technology investment focus, including software and the Internet, data communications, telecommunications, semiconductors and subscriber-based services. Information on Norwest Venture Partners is available on the Internet at http://www.norwestvc.com or by calling 650-321-8000 (Palo Alto) or 781-237-5870 (Boston).

About Lucent Venture Partners

Lucent Venture Partners, LLC. was formed in February 1998 by Lucent Technologies as a venture capital fund. With over $100 million committed in LVP Fund I, the fund invests in early-stage technology companies in high growth communications areas such as wireless, data networking, semiconductors, communications software and professional services. The firm has offices in Murray Hill, N.J. and Palo Alto, Calif. More information about Lucent companies is available at www.luvp.com.

About The Ignite Group

The Ignite Group is a Redwood City, Calif.-based venture capital and consulting firm. Ignite Group focuses on making information technology venture investments and providing senior management counsel for U.S. and Asian high technology companies. For more information, check www.ignitegroup.com.

About Accel Partners

Accel Partners is a Palo Alto, Calif. venture capital firm dedicated to partnering with outstanding management teams to build world-class companies. Accel concentrates the investment of over $800 million under management in the areas of communications and Internet/Intranet in order to be highly responsive to new companies in target markets. Their contributions extend well beyond financing and include strategic guidance, business development and partnering. Information on Accel Partners is available at www.accel.com.

About Mayfield Fund

Mayfield Fund is a private venture capital partnership based in Menlo Park, Calif. Since Mayfield's founding in 1969, the firm has invested in more than 300 companies and has taken approximately 80 companies public. Today, these Mayfield- backed companies represent an aggregate market value of more than $100 billion. Mayfield focuses on companies with unique, technology-driven products and services that address well-defined needs in rapidly growing markets. Mayfield Fund specifically seeks entrepreneurs whose companies have the potential to achieve a market capitalization of more than $200 million in five years. For more information, visit Mayfield's web site at http://www.mayfield.com.

About Omneon Video Networks

Omneon Video Networks is the company providing networking and storage solutions for content producers and distributors in the converging industries of television and the Internet. Omneon has created the Video Area NetworkTM, an integrated networking and storage platform that enables routing, storing and sharing of digital audio, video, and any type of related data throughout and among facilities. Omneon Video Networks, headquartered in Campbell, Calif., is privately held and funded by prominent venture capital firms. Omneon's web site is www.omneon.com.

Omneon Video Networks and Video Area Network are a trademark of Omneon Video Networks, Inc. Additional company and product names may be trademarks or registered trademarks of the individual companies and are respectfully acknowledged.