MGI Software Partners With DVDExpress.Com For DVD Sales

MGI Software (TSE:MGI), the leader in Internet imaging and digital video solutions, has announced a commercial partnership with DVD Express, a leading online video retailer, to enable MGI SoftDVD MAX users to buy DVD movies through the Web. Clicking on the MGI logo in SoftDVD MAX immediately launches the user's browser, transporting them to the DVD Express Web site (http://www.dvdexpress.com) where they can purchase from over 4,000 DVD-movie, DVD-ROM software titles, music soundtracks and video games at daily discounts of up to 50 percent. By enabling SoftDVD MAX with this capability, MGI Software will receive a part of any transaction between the user and DVD Express. No other terms were disclosed.`MGI SoftDVD MAX extends the DVD experience beyond the PC to the Internet, and in turn, the Internet has created new business opportunities for our OEM (Original Equipment Manufacturer) products,` said Anthony DeCristofaro, President and CEO, MGI Software. `Our partnership with DVD Express benefits users in that it provides the convenience to purchase DVDs online from the most popular source. For MGI Software, it changes the traditional model of selling MGI SoftDVD MAX to a vendor as a simple bundle. It enables us to tap into additional revenue streams through a transaction, in this case, the purchase of a DVD movie or other content.`Software-only DVD players, like MGI SoftDVD MAX, utilize the main computer processor to replace expensive, dedicated hardware chips that are required to decode DVD movies and content for viewing on a personal computer. Since hardware DVD movie decoders typically cost a PC manufacturer about US$50 per system, MGI SoftDVD MAX offers manufacturers a more flexible, cost-effective alternative. According to Michelle Abraham, Senior Analyst, Multimedia, Cahners In-Stat Group, shipments of drives with DVD-ROM read capability will increase from six million in 1998 to 150 million in 2003, all needing DVD decoding capability.MGI SoftDVD MAX is a robust software-only DVD decoder that runs on a broad range of PentiumÆ II- class multimedia computers (300Mhz or faster), with support for most of the leading graphics cards, including hardware motion compensation, and audio controllers. Beneath its sleek and intuitive VCR-type interface, MGI SoftDVD MAX supports all of the components of the DVD standard in software, including full DVD player navigation, MPEG-2, video decryption, DolbyÆ Digital (AC-3Æ) decoding and 5.1 surround, 3D audio, and more.The software provides users with smooth, laser-sharp video and crystal-clear audio without any skips or clicks. Further, with immediate support for MicrosoftÆ DirectShow, Windows 95, 98 and NT-based architectures, and twenty-four languages (including English, French, Italian, German, Spanish, and Japanese), MGI SoftDVD MAX provides manufacturers with the flexibility to rollout systems, with various hardware configurations, to a worldwide audience. In addition, MGI SoftDVD MAX is the only DVD playback solution on the market that is Web-enabled. This exclusive feature extends the DVD experience beyond the PC to the Internet, bringing DVD movie enthusiasts together to a hosted online community. The software is sold through OEM licensing and is also available for purchase and download (US$19.99) through MGI Software's online store at: http://www.mgisoft.com/Products/MGIstore/About DVD ExpressDVD Express, based in Los Angeles, California and located on the Web at http://www.dvdexpress.com, is a leader in entertainment product retailing, which immediately provides customers with selection, service, and value. Recently voted No. 1 online retailer of the year by Video Business Magazine and top rated for customer satisfaction by Forrester Research, Time Digital, Harris Interactive and BizRate.com, the company has quickly grown to become one of the dominant forces in video retailing since its launch in April 1997. Merging the future of home entertainment with the future of shopping under the single banner of `High Speed Entertainment,` DVD Express offers customers over 4,000 DVD-movie and DVD- ROM software titles at daily discounts of up to 50 percent as well as music soundtracks and video games. In addition to online retail, DVD Express is the premier Web destination for DVD, home entertainment and movie enthusiasts, offering a robust online community with entertaining DVD-related editorial content (http://www.dvd.com), contests, promotions and auctions. DVD Express can also be found online through its partnerships and advertising deals with the AOL Network (Keyword: DVD Express), AOL.com, CompuServe, Go.com (formerly Infoseek), NBC's Videoseeker, Compaq, Gateway, AltaVista and Internet keyword: DVD.About MGI SoftwareFounded in 1995, MGI Software is one of the world's leading digital media companies. The Company's early focus on delivering digital media editing technology to the mass market has led to leadership in digital imaging and video editing worldwide. MGI Software recently broadened its market to business and online users of photography and expanded its technological to encompass digital entertainment media. Through its ever-growing network of partnerships with major consumer electronics manufacturers, computer hardware and software vendors, photo retailers and the entertainment industry, MGI Software is uniquely positioned to benefit from the digital revolution shaping our lifestyles. MGI Software employs over 200 people with offices in North America, Europe, Pacific Rim, and Japan. MGI Software is publicly traded on The Toronto Stock Exchange.

For more information visit http://www.mgisoft.com. For OEM inquiries contact Sean Budnik, Director, OEM Sales, at 905 707 4712 or seanb(at)mgisoft.com.Source: MGI Software Corp.