Amendment No. 4 to Schedule 13D

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NB381LIGAyoRcWmcTofRcsCsGQXGRiK+wbr6PnZG4m3MnwJfLFyCL0ptvS4fPrnW vswebnuy5AIN+vgEs2QcBA== 0001193125-09-126844.txt : 20090608 0001193125-09-126844.hdr.sgml : 20090608 20090608140435 ACCESSION NUMBER: 0001193125-09-126844 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20090608 DATE AS OF CHANGE: 20090608 GROUP MEMBERS: ANDRE KUDELSKI GROUP MEMBERS: KUDELSKI INTERACTIVE CAYMAN, LTD. GROUP MEMBERS: KUDELSKI INTERACTIVE USA, INC. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: OPENTV CORP CENTRAL INDEX KEY: 0001096958 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING SERVICES [7371] IRS NUMBER: 980212376 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-58285 FILM NUMBER: 09879283 BUSINESS ADDRESS: STREET 1: ABBOTT BUILDING STREET 2: MOUNT STREET TORTOLA CITY: ROAD TOWN COUNTY BUSINESS PHONE: 6504295500 MAIL ADDRESS: STREET 1: ABBOTT BUILDING STREET 2: MOUNT STREET TORTOLA CITY: ROAD TOWN COUNTRY FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Kudelski SA CENTRAL INDEX KEY: 0001387734 IRS NUMBER: 000000000 STATE OF INCORPORATION: V8 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: RTE DE GENEVE 22-24 STREET 2: P.O. BOX 134 CITY: CHESEAUX STATE: V8 ZIP: 103 BUSINESS PHONE: 41-21-728-5059 MAIL ADDRESS: STREET 1: RTE DE GENEVE 22-24 STREET 2: P.O. BOX 134 CITY: CHESEAUX STATE: V8 ZIP: 103 SC 13D/A 1 dsc13da.htm AMENDMENT NO. 4 TO SCHEDULE 13D Amendment No. 4 to Schedule 13D

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

SCHEDULE 13D/A

UNDER THE SECURITIES EXCHANGE ACT OF 1934

(Amendment No. 4)*

OpenTV Corp.

(Name of Issuer)

Class A ordinary shares, no par value

(Title of Class of Securities)

G675431

(CUSIP Number)

Lucien Gani

General Counsel, Head of Legal Affairs

Kudelski SA

22-24, Route de Genève

Case Postale 134

1033 Cheseaux, Switzerland

41 21 732 01 01

(Name, Address and Telephone Number of Person

Authorized to Receive Notices and Communications)

June 4, 2009

(Date of Event Which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. ¨

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.

The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes)


CUSIP NO. G675431		13D/A		Page 2 of 10 Pages


1.	Name of Reporting Persons Kudelski SA None
2.	Check the Appropriate Box if a Member of a Group (see instructions) (a) ¨ (b) x
3.	SEC USE ONLY
4.	Source of Funds (see instructions) OO
5.	Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)	¨
6.	Citizenship or Place of Organization Switzerland


Number of Shares Beneficially Owned by Each Reporting Person With		7. Sole Voting Power 0
		8. Shared Voting Power 44,642,302(1)
		9. Sole Dispositive Power 0
		10. Shared Dispositive Power 44,642,302(1)


11.	Aggregate Amount Beneficially Owned by Each Reporting Person 44,642,302(1)
12.	Check if the Aggregate Amount in Row (11) Excludes Certain Shares (see instructions) —	¨
13.	Percent of Class Represented by Amount in Row 11 32.3%(2)
14.	Type of Reporting Person (see instructions) CO


CUSIP NO. G675431		13D/A		Page 3 of 10 Pages


1.	Name of Reporting Persons André Kudelski
2.	Check the Appropriate Box if a Member of a Group (see instructions) (a) ¨ (b) x
3.	SEC USE ONLY
4.	Source of Funds (see instructions) OO
5.	Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)	¨
6.	Citizenship or Place of Organization Switzerland


Number of Shares Beneficially Owned by Each Reporting Person With		7. Sole Voting Power 100,000
		8. Shared Voting Power 44,742,302(1)
		9. Sole Dispositive Power 100,000
		10. Shared Dispositive Power 44,742,302(1)


11.	Aggregate Amount Beneficially Owned by Each Reporting Person 44,742,302(1)
12.	Check if the Aggregate Amount in Row (11) Excludes Certain Shares (see instructions) —	¨
13.	Percent of Class Represented by Amount in Row 11 32.4%(2)
14.	Type of Reporting Person (see instructions) IN


CUSIP NO. G675431		13D/A		Page 4 of 10 Pages


1.	Name of Reporting Persons Kudelski Interactive USA, Inc. None
2.	Check the Appropriate Box if a Member of a Group (see instructions) (a) ¨ (b) x
3.	SEC USE ONLY
4.	Source of Funds (see instructions) OO
5.	Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)	¨
6.	Citizenship or Place of Organization Delaware


Number of Shares Beneficially Owned by Each Reporting Person With		7. Sole Voting Power 0
		8. Shared Voting Power 30,206,154(1)
		9. Sole Dispositive Power 0
		10. Shared Dispositive Power 30,206,154(1)


11.	Aggregate Amount Beneficially Owned by Each Reporting Person 30,206,154(1)
12.	Check if the Aggregate Amount in Row (11) Excludes Certain Shares (see instructions) —	¨
13.	Percent of Class Represented by Amount in Row 11 21.9%(3)
14.	Type of Reporting Person (see instructions) CO


CUSIP NO. G675431		13D/A		Page 5 of 10 Pages


1.	Name of Reporting Persons Kudelski Interactive Cayman, Ltd. None
2.	Check the Appropriate Box if a Member of a Group (see instructions) (a) ¨ (b) x
3.	SEC USE ONLY
4.	Source of Funds (see instructions) OO
5.	Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)	¨
6.	Citizenship or Place of Organization Cayman Islands


Number of Shares Beneficially Owned by Each Reporting Person With		7. Sole Voting Power 0
		8. Shared Voting Power 6,533,951
		9. Sole Dispositive Power 0
		10. Shared Dispositive Power 6,533,951


11.	Aggregate Amount Beneficially Owned by Each Reporting Person 6,533,951
12.	Check if the Aggregate Amount in Row (11) Excludes Certain Shares (see instructions) —	¨
13.	Percent of Class Represented by Amount in Row 11 6.0%(4)
14.	Type of Reporting Person (see instructions) CO


CUSIP NO. G675431		13D/A		Page 6 of 10 Pages

(1)

Includes 7,902,197 Class A ordinary shares of the Issuer held of record by Kudelski SA, 6,533,951 Class A ordinary shares of the Issuer held of record by Kudelski Interactive Cayman, Ltd. (“Kudelski Cayman”), an indirect wholly owned subsidiary of Kudelski SA and 30,206,154 Class A ordinary shares of the Issuer issuable upon conversion of the same number of Class B ordinary shares of the Issuer held by Kudelski Interactive USA, Inc. (“Kudelski US”), an indirect wholly owned subsidiary of Kudelski SA. André Kudelski controls a majority of the voting securities of Kudelski SA.

(2)

Calculated in accordance with Rule 13d-3 promulgated under the Securities Exchange Act of 1934 (the “Act”), based upon 107,927,469 Class A ordinary shares of the Issuer and 30,206,154 Class B ordinary shares of the Issuer issued and outstanding as of March 31, 2009 (as reported in the Issuer’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2008). Assumes the conversion of 30,206,154 Class B ordinary shares of the Issuer held by Kudelski US, into the same number of Class A ordinary shares of the Issuer. Because the Issuer’s Class B ordinary shares are entitled to ten votes per share on matters submitted to stockholders of the Issuer, the Class A ordinary shares and Class B ordinary shares beneficially owned by the Reporting Person constitute approximately 77.2% of the voting power of the outstanding ordinary shares of the Issuer.

(3)

Calculated in accordance with Rule 13d-3 promulgated under the Securities Exchange Act of 1934 (the “Act”), based upon 107,927,469 Class A ordinary shares of the Issuer and 30,206,154 Class B ordinary shares of the Issuer issued and outstanding as of March 31, 2009 (as reported in the Issuer’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2008). Assumes the conversion of 30,206,154 Class B ordinary shares of the Issuer held by Kudelski US, into the same number of Class A ordinary shares of the Issuer. Because the Issuer’s Class B ordinary shares are entitled to ten votes per share on matters submitted to stockholders of the Issuer, the Class B ordinary shares beneficially owned by the Reporting Person constitute approximately 73.7% of the voting power of the outstanding ordinary shares of the Issuer.

(4)


CUSIP NO. G675431		13D/A		Page 7 of 10 Pages

This Amendment No. 4 (this “Amendment”) relates to and amends the Statement of Beneficial Ownership on Schedule 13D of Kudelski SA, a Swiss corporation, Kudelski Interactive USA, Inc., a Delaware corporation, Kudelski Interactive Cayman, Ltd., a Cayman Islands corporation, and André Kudelski, a Swiss citizen (each, a “Reporting Person” and collectively, the “Reporting Persons”), as amended by Amendment No. 3 filed jointly by the Reporting Persons with the Securities and Exchange Commission on February 27, 2009 (the “Statement”), with respect to the Class A ordinary shares, no par value of OpenTV Corp., a British Virgin Islands corporation (the “Issuer”).

Items 4, 5 and 7 of the Statement are hereby amended and supplemented to the extent hereinafter expressly set forth. All capitalized terms used and not expressly defined herein have the respective meanings ascribed to such terms in the Statement.

ITEM 4.

PURPOSE OF TRANSACTION.

The Class A ordinary shares and Class B ordinary shares beneficially owned by Kudelski SA represent approximately 32.3% of the ordinary shares of the Issuer and approximately 77.2% of the total voting power of the ordinary shares of the Issuer, based upon information provided in the Issuer’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2008 with respect to the number of ordinary shares outstanding as of March 31, 2009. As a result of its beneficial ownership of shares of the Issuer and the voting power attributable thereto, Kudelski SA has the ability to elect all of the members of the Issuer’s board of directors and, subject to applicable law, to otherwise generally direct the business and affairs of the Issuer, including the power to approve mergers and other extraordinary corporate transactions and amendments to the Issuer’s Memorandum of Association and Articles of Association.

On February 26, 2009, Kudelski SA sent a letter to the Issuer, stating that it proposed to acquire all of the outstanding Class A ordinary shares not currently owned by the Reporting Persons (the “Potential Transaction”). On March 4, 2009, the Issuer announced that its board of directors had formed a special committee of independent directors (the “Special Committee”) to review the Potential Transaction with Kudelski SA and on March 16, 2009, the Issuer announced that the Special Committee had appointed financial and legal advisors in connection with such review.

On June 2, 2009, the Special Committee announced that it had rejected the proposal made by Kudelski SA. On June 4, 2009, Kudelski SA announced that it had withdrawn its proposal and terminated discussions with the Special Committee. A copy of Kudelski SA’s announcement is filed herewith as Exhibit 7.2. In particular, Kudelski SA announced that it “intends to advocate through its board representation that OpenTV substantially increase its investment in next-generation solutions, mainly organically but also potentially through acquisitions, which will require a substantial portion of OpenTV’s currently available cash resources. While this strategy is likely to depress OpenTV’s financial performance over the next few years, such efforts and investments are required to insure OpenTV’s long-term success. Without such investments, Kudelski believes that the long-term viability of OpenTV’s business as a stand-alone entity is seriously in doubt.”

The Reporting Persons intend to review their investment in shares of the Issuer on a continuing basis. The Reporting Persons, or one or more of them, may determine to (1) acquire additional securities of the Issuer, through open market purchases or otherwise, (2) pursue an acquisition of the Issuer, or (3) take any other available course of action. Notwithstanding anything contained herein, the Reporting Persons specifically reserve the right to change their intention with respect to any or all of such matters.


CUSIP NO. G675431		13D/A		Page 8 of 10 Pages

ITEM 5.

INTEREST IN SECURITIES OF THE ISSUER.

(a) Kudelski SA may be deemed to be the beneficial owner of 14,436,148 Class A ordinary shares and 30,206,154 Class B ordinary shares of the Issuer. The Class B ordinary shares are convertible at any time into an equal number of Class A ordinary shares. Based upon 107,927,469 Class A ordinary shares and 30,206,154 Class B ordinary shares of the Issuer issued and outstanding as of March 31, 2009 (as reported in the Issuer’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2008), and assuming the conversion of 30,206,154 Class B ordinary shares held by Kudelski US into the same number of Class A ordinary shares, Kudelski SA beneficially owns approximately 32.3% of the Class A ordinary shares of the Issuer, calculated in accordance with Rule 13d-3(d)(1) under Section 13 of the Act. André Kudelski may also be deemed to be the beneficial owner of the shares of the Issuer beneficially owned by Kudelski SA through his control of a majority of the voting securities of Kudelski SA. In addition, André Kudelski directly owns 100,000 Class A ordinary shares of the Issuer pursuant to a grant under the OpenTV 2005 Incentive Plan, which shares are restricted from sale or transfer for a period of four years from the date of grant.

Kudelski US is the beneficial owner of 30,206,154 Class B ordinary shares of the Issuer. The Class B ordinary shares are convertible at any time into an equal number of Class A ordinary shares. Based upon 107,927,469 Class A ordinary shares and 30,206,154 Class B ordinary shares of the Issuer issued and outstanding as of March 31, 2009 (as reported in the Issuer’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2008), and assuming the conversion of 30,206,154 Class B ordinary shares held by Kudelski US into the same number of Class A ordinary shares, Kudelski US beneficially owns approximately 21.9% of the Class A ordinary shares of the Issuer, calculated in accordance with Rule 13d-3(d)(1) under Section 13 of the Act. Kudelski SA may also be deemed to be the beneficial owner of the shares of the Issuer beneficially owned by Kudelski US since Kudelski US is an indirect wholly owned subsidiary of Kudelski SA.

Kudelski Cayman beneficially owns 6,533,951 Class A ordinary shares of the Issuer. Based upon 107,927,469 Class A ordinary shares of the Issuer issued and outstanding as of March 31, 2009 (as reported in the Issuer’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2008), Kudelski Cayman beneficially owns approximately 6% of the Class A ordinary shares of the Issuer, calculated in accordance with Rule 13d-3(d)(1) under Section 13 of the Act. Kudelski SA may also be deemed to be the beneficial owner of the shares of the Issuer beneficially owned by Kudelski Cayman since Kudelski Cayman is an indirect wholly owned subsidiary of Kudelski SA.

Pierre Roy (“Roy”) has the right to buy 10,000 Class A ordinary shares of the Issuer with an exercise price of $1.18 per share and 10,000 Class A ordinary shares of the Issuer with an exercise price of $2.35 pursuant to director stock option grants under the OpenTV 2005 Incentive Plan. 25% of the shares subject to the options vest on the one-year anniversary of the applicable vesting commencement date, with the balance vesting monthly thereafter in 36 equal installments. Roy is currently the beneficial owner of 8,749 Class A ordinary shares of the Issuer.


CUSIP NO. G675431		13D/A		Page 9 of 10 Pages

Mauro Saladini (“Saladini”) has the right to buy 10,000 Class A ordinary shares of the Issuer with an exercise price of $1.18 per share pursuant to a director stock option grant under the OpenTV 2005 Incentive Plan. 25% of the shares subject to the option vest on the one-year anniversary of the vesting commencement date, with the balance vesting monthly thereafter in 36 equal installments. Saladini is currently the beneficial owner of 3,333 Class A ordinary shares of the Issuer.

Lucien Gani (“Gani”) has the right to buy 10,000 Class A ordinary shares of the Issuer with an exercise price of $1.18 per share and 10,000 Class A ordinary shares of the Issuer with an exercise price of $2.35 pursuant to director stock option grants under the OpenTV 2005 Incentive Plan. 25% of the shares subject to the options vest on the one-year anniversary of the applicable vesting commencement date, with the balance vesting monthly thereafter in 36 equal installments. Gani is currently the beneficial owner of 8,749 Class A ordinary shares of the Issuer.

Claude Smadja (“Smadja”) has the right to buy 10,000 Class A ordinary shares of the Issuer with an exercise price of $1.18 per share and 10,000 Class A ordinary shares of the Issuer with an exercise price of $2.35 pursuant to director stock option grants under the OpenTV 2005 Incentive Plan. 25% of the shares subject to the options vest on the one-year anniversary of the applicable vesting commencement date, with the balance vesting monthly thereafter in 36 equal installments. Smadja is currently the beneficial owner of 8,749 Class A ordinary shares of the Issuer.

Based upon 107,927,469 Class A ordinary shares of the Issuer issued and outstanding as of March 31, 2009 (as reported in the Issuer’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2008), each of Roy, Saladini, Gani and Smadja beneficially own less than 1% of the Class A ordinary shares of the Issuer, calculated in accordance with Rule 13d-3(d)(1) under Section 13 of the Act.

ITEM 7.

MATERIAL TO BE FILED AS EXHIBITS


Exhibit 7.1		Joint Filing Agreement, dated February 26, 2009, among André Kudelski, Kudelski SA, Kudelski Interactive Cayman, Ltd., and Kudelski Interactive USA, Inc. (incorporated by reference to Exhibit 7.1 to Amendment No. 3 to Schedule 13D filed by the Reporting Persons with the Securities and Exchange Commission on February 27, 2009).

Exhibit 7.2		Press release, dated June 4, 2009.


CUSIP NO. G675431		13D/A		Page 10 of 10 Pages

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Dated: June 8, 2009


Kudelski SA

By:		/s/ Lucien Gani
Name:		Lucien Gani
Title:		General Counsel and Head of Legal Affairs

By:		/s/ André Kudelski
Name:		André Kudelski
Kudelski Interactive Cayman, Ltd.

By:		/s/ Lucien Gani
Name:		Lucien Gani
Title:		Director

Kudelski Interactive USA, Inc.

By:		/s/ Lucien Gani
Name:		Lucien Gani
Title:		President and Chief Executive Officer

EX-7.2 2 dex72.htm PRESS RELEASE, DATED JUNE 4, 2009 Press release, dated June 4, 2009

Exhibit 7.2

THE KUDELSKI GROUP COMMENTS ON REJECTION OF ITS OFFER BY THE SPECIAL

COMMITTEE SET UP BY THE OPEN TV BOARD.

Cheseaux, Switzerland – June 4, 2009 - The Kudelski Group (SWX:KUD.VX) today issued the following comments on the recent statement issued by the Special Committee of the Board of Directors (“the Special Committee”) of OpenTV Corp. (“OpenTV”) (NASDAQ: OPTV) regarding the Kudelski Group’s (“Kudelski”) non-binding proposal to acquire all of the Class A ordinary shares of OpenTV not currently owned by Kudelski or its affiliates for $1.35 per share in cash.

Perspectives on Special Committee’s Response

Kudelski is disappointed by the Special Committee’s response, as it believes that the rejection of its proposal is not in the best interests of OpenTV’s minority shareholders, customers, partners and employees. Kudelski continues to firmly believe that its proposal would deliver superior value to OpenTV shareholders relative to other options currently available to them as stockholders of OpenTV as a stand-alone entity.

While Kudelski acknowledges the improvement in the financial performance of OpenTV following Kudelski’s acquisition of its controlling stake, it also recognizes that OpenTV faces serious strategic challenges which, if not addressed, will materially affect its revenues and margins. Kudelski believes these challenges were significantly underestimated by the Special Committee.

In particular, Kudelski believes that the Special Committee assessment relies exclusively on an overly optimistic and unrealistic outlook on both OpenTV’s future business prospects and the business as a whole. As a result, the Special Committee does not adequately take into account the economic impact of such challenges on the value of OpenTV and greatly discounted the scope and magnitude of the measures required to mitigate the risks faced by OpenTV. For example, Kudelski believes that the Special Committee’s assessment does not adequately take into account the impact of the market trends towards next generation set-top box software solutions, and the resulting significant decrease of OpenTV’s business volumes in a stand-alone scenario.

In addition, while Kudelski acknowledges the value of the OpenTV customer franchise and human capital, it also believes that it is vital for the long-term development of OpenTV business to significantly ramp up its investment, even at the expense of short term profitability.

Kudelski has voiced these concerns in the past but has been met repeatedly with reluctance and therefore has now no alternative moving forward except to act aggressively to mitigate these risks, under all circumstances. Kudelski believes that it is in all shareholders’ best interests for OpenTV to address these strategic concerns. Consequently, Kudelski intends to advocate through its board representation that OpenTV substantially increase its investment in next-generation solutions, mainly organically but also potentially through acquisitions, which will require a substantial portion of OpenTV’s currently available cash resources. While this strategy is likely to depress OpenTV’s financial performance over the next few years, such efforts and investments are required to insure OpenTV’s long-term success. Without such investments, Kudelski believes that the long-term viability of OpenTV’s business as a stand-alone entity is seriously in doubt.

Perspectives on Discovery’s Recent Public Disclosure

While waiting for the Special Committee’s response to its proposal, Kudelski elected not to comment publicly regarding Discovery Group’s (“Discovery”) amended 13D filing on April 2, 2009. However, Kudelski believes that it is now the appropriate time to convey its perspective, and urges shareholders to disregard Discovery Group’s analysis and conclusions. Under no circumstances would Kudelski offer the prices suggested by Discovery, having determined such prices to be significantly in excess of Kudelski’s view of the fair value of OpenTV.

Kudelski believes that Discovery’s analysis is fundamentally flawed and contains numerous inaccurate assumptions and misleading analysis, including:

•

Portraying the proposed transaction as a change of control;

•

Disregarding the significant risks that OpenTV faces;

•

Using unrealistic forecasts and assumptions as the foundation for its analysis;

•

Using historical valuation metrics and inappropriate comparables as a basis for measuring the fair value of OpenTV while ignoring business fundamentals;

•

Failing to acknowledge Kudelski’s continued contribution to OpenTV’s turnaround and the economic impact of a potential redirection of Kudelski’s efforts; and

•

Ignoring open-market transactions. Examples of such evidences include, for example, OpenTV’s share price at $1.00 at market close prior to Kudelski’s announcement, and the arm’s length average $1.09 price per share paid by Kudelski for the acquisition of more than 7.9 million publicly listed OpenTV shares between September 2007 and February 2008.

Stakeholder Feedback and Summary Conclusions

Kudelski has received favorable responses on the benefits of the proposed combination from several key customers and major shareholders. Customers have clearly stated to Kudelski that they strongly support the proposed combination, believing that a full integration of OpenTV and Nagravision provides the best platform for the long-term support of and investment in OpenTV’s product portfolio. Kudelski reiterates its commitment to remain OpenTV’s controlling shareholder and to protect its investment by undertaking all necessary measures to ensure its long-term success.

Based on Kudelski’s discussions with the Special Committee, Kudelski has concluded that continued discussions will not be fruitful and has therefore decided to withdraw its proposal and terminate discussions with the Special Committee.

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. Please visit www.nagra.com for more information.

Media Contact:

Daniel Herrera – Kudelski Group

+41 21 732 01 81

Investor Contact:

Santino Rumasuglia – Kudelski Group

+41 21 732 01 24

Amy Bilbija – MacKenzie Partners

+1 212-929-5802

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