Kaleidescape Wins Breach Of Contract Case Against DVD Copy Control Association

April 2, 2007

Kaleidescape Inc., the market leader in entertainment servers, is pleased to announce that today, after a seven-day trial, Judge Leslie C. Nichols of the Santa Clara Superior Court ruled that Kaleidescape is in full compliance with the DVD Copy Control Association's license to the Content Scramble System, the method used to encrypt video and audio data on DVDs. As part of his statement of decision, Judge Nichols noted Kaleidescape's good faith in its efforts to ensure that its products were fully compliant. "Kaleidescape has been operating in the shadow of the DVD CCA's allegations for over three years," said Michael Malcolm, Kaleidescape's founder, chairman and CEO. "We are gratified that after hearing all of the evidence, the Judge has completely vindicated our position." Kaleidescape was represented at trial by Thomas E. Moore III and Richard R. Wiebe. About Kaleidescape The Kaleidescape System is redefining home entertainment by transforming the way movies and music are collected, managed and enjoyed throughout the home. The Kaleidescape System combines a compelling interface, outstanding industrial design, and services that set new standards in the consumer electronics industry. Kaleidescape was founded in 2001 and is privately held. The company is headquartered in Mountain View, California with research and development conducted by Kaleidescape Canada, Inc., based in Waterloo, Ontario. Kaleidescape products are available through a worldwide network of custom-installation dealers and distributors. For more information, contact Kaleidescape at (888) 352-5343 or (650) 625-6150, email us at sales@kaleidescape.com, or visit http://www.kaleidescape.com. Contact a local dealer for international pricing.

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