Scopus Announces Second Quarter Results

Record Quarterly Revenues Growing 12% over Q2 ‘05

TEL - AVIV,, August 3, 2006 Scopus Video Networks Ltd. (NASDAQ: SCOP), a provider of digital video networking products, today announced its results for the second quarter ending June 30, 2006.

Q2 2006 Consolidated Statements: www.scopus.net/pdf/REPORTS/2006_Q2_consolidated_statements.pdf

Second Quarter 2006 Highlights:

* Record revenue growing 12% compared to the second quarter of 2005 and 9% sequentially.
* Received an initial order for the UID-2912 Dense Edge Decoder from a leading U.S. Multi-Service Operator (MSO).
* Traction continues in Asia-Pacific, Europe and Africa.

Revenue in the second quarter of 2006 was $12.4 million, up 12% from $11.1 million in the second quarter of 2005. The breakdown of revenue by region was 62% million in EMEA, 17% million in Asia and Pacific Rim and 21% million in the Americas.

Gross profit in the second quarter of 2006 was $6.1 million compared with $5.6 million, as reported in the second quarter of 2005. Gross profit as a percentage of revenues was 49% compared with 50% in the second quarter of 2005.

Pro-forma net loss, which excludes stock based compensation expenses, was $0.7 million or $0.05 per share compared to a net loss of $1.4 million or $0.64 per share as reported in the second quarter of 2005.

Net loss on a GAAP basis for the second quarter of 2006 was $1.2 million, or $0.09 per basic share, an improvement from a net loss of $1.4 million or $0.64 per basic share in the comparable quarter of 2005.

The Company ended the second quarter with cash and equivalents of $32 million, compared with $32 million on March 31, 2006.

David Mahlab, CEO of Scopus said, “Our second quarter set a new record in terms of revenue. Over 80% of the revenue came from repeat orders. Our US sales in the first half of this year grew 70% compared with last year and we are seeing significant traction for our products. Going forward, the pace of the US business, however, is likely to be somewhat slower than our original expectations. We are in the process of qualifying our IVG splicing product at a number of US Tier-1 operators, though this is taking longer than we had originally anticipated.”
Mr. Mahlab concluded, “The rest of the world is growing inline with our expectations. We are seeing growing demand, strong sales and a growing pipeline in the geographies where we are particularly strong, including Russia, India, the Far East.”

Conference Call Details
The Company will be hosting a conference call today, August 3rd at 9:00am EDT. On the call, management will review and discuss the second quarter results in more detail and will provide its outlook for the remainder of 2006.

To participate, please call one of the following teleconferencing numbers. Please begin placing your calls at least 5 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

US Dial-in Number: 1 866 229 7198
UK Dial-in Number: 0 800 917 9141
ISRAEL Dial-in Number: 03 918 0609
INTERNATIONAL Dial-in Number: +972 3 918 0609

For those unable to listen to the live call, a replay of the call will be available for three months from the day after the call in the investor relations section of Scopus’s website, at: www.scopus.net
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About Scopus Video Networks
Scopus Video Networks (NASDAQ:SCOP) develops, markets and supports digital video networking products that enable network operators to offer advanced video services to their subscribers. Scopus offers products that support digital television, HDTV, live event coverage and content distribution.

Scopus provide a comprehensive digital video networking product offering, including intelligent video gateways, encoders, decoders and network management products. Scopus’ products are designed to allow network operators to increase service revenue, improve customer retention and minimize capital and operating expenses.

Scopus’ customers are network operators such as satellite, cable and telecom service providers and terrestrial broadcasters. Scopus’ products are used by hundreds of network operators worldwide. For more information visit: www.scopus.net
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This press release contains forward-looking statements concerning our marketing and operations plans. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. All forward-looking statements in this press release are made based on management’s current expectations and estimates, which involve risks, uncertainties and other factors that could cause results to differ materially from those expressed in forward-looking statements. These statements involve a number of risks and uncertainties including, but not limited to, risks related to the evolving market for digital video in general, and video-over-IP and the acceptance of our IVG products in particular, the ability to increases sales of newer products, the successful expansion of sales in the United States and with larger cable operators, general economic conditions and other risk factors. Scopus does not undertake any obligation to update forward-looking statements made herein.

Contact Information

Moshe Eisenberg

Scopus Corporate Contact

Scopus Video Networks Ltd.

Contact via E-mail