Hi-tech giant Pace is to supply digital cable firm Telewest with another 500,000 set-top TV boxes.

In an extension of its current contract, the Saltaire-based manufacturer will provide Telewest, owners of Yorkshire Cable, with its fastest technology.

The deal will see Pace replacing its original digital boxes, supplied under a contract signed in 1999, with its latest "third generation" product.

Sales director Neil Gaydon said: "We have been involved with Telewest since the launch of its digital cable service and are delighted they have chosen the latest in Pace technology.

"Pace is at the forefront of cable home gateway engineering and we are constantly driving forward the boundaries of what is possible.

"The new generation system is currently the world's most advanced digital cable product in mass production."

Through the new equipment, Telewest customers should enjoy faster access to a wide range of services, including pay-per-view movies, e-mail and Internet access.

Pace plans to supply the new machines over a 15-month period.

It is also pushing ahead with its pioneering partnership with Japanese computer games firm Sega, meanwhile, which will allow cable viewers to play console quality games on their TVs.

"The technology is being shown to various broadcasters around the world and we will launch when we have a broadcaster partner," said a spokeswoman.