[2] Media 100 Inc. Signs Definitive Agreement to Acquire Assets of Wired Inc.; Company is a Leading Supplier of MPEG Streaming Media Production Tools for the Internet and DVD Authoring.

MARLBORO, Mass.--(BUSINESS WIRE)--Dec. 17, 1999--

Media 100 Inc. (NASDAQ: MDEA), the pioneer of streaming media production tools, today announced it has entered into a definitive agreement to acquire the assets of MPEG streaming media leader Wired Inc. of Santa Clara, California. Wired is a fast-growing supplier of MPEG streaming media production tools for the Internet and DVD authoring. Wired solutions, such as Digital Media Press and FireWired DV, greatly reduce the cost and complexity of using the industry-standard MPEG streaming format by reducing or eliminating the time required to encode (generate a stream) or transcode (convert to or from) MPEG video. Wired tools deliver real-time encoding, transcoding and decoding (playback) of MPEG video streams, allowing Web site designers, DVD authors, video editors, and multimedia professionals to quickly get their content online or on DVD for playback with unrivalled image quality. Wired products are available on Macintosh, Windows and Windows NT.

Terms of the agreement were not announced. The transaction is subject to customary closing conditions including the completion of due diligence. The Company will treat the acquisition as an asset purchase for accounting purposes.

John Molinari, president and chief executive officer of Media 100, said, "The acquisition of Wired is a significant element in our strategy to become the leading supplier of streaming media production tools on the Internet. Wired helps us break down the barriers of cost and complexity between the camera and the Internet by giving users the ability to move content onto their PCs in real time -- encoded as MPEG video -- ready for editing, DVD authoring, and Internet streaming. With prices beginning around $200, these products are accessible to a broad range of users.

"We project results of the acquisition to be accretive within the first year of combined operations. Wired complements our efforts with their excellent team, unsurpassed MPEG streaming media technology to enhance our Media Cleaner, iFinish and Media 100 product lines, and compelling new streaming media products."

Thomas Burke, president and chief executive officer of Wired Inc. said, "This is a great opportunity for the customers and partners of both companies. By combining the companies, we can significantly accelerate the adoption of streaming media on the desktop. Wired's MPEG streaming technology directly supports increased performance for Media 100 products. Integrating these technologies will provide customers with unrivalled quality and productivity for DVD authoring and Internet video applications. Media 100's broad channel of resellers, international presence and strong financial position will allow Wired to better serve its customers and OEM partners."

About Wired

Wired was established in 1990 with a mission to support video applications utilizing the MPEG standard that would allow video content to be archived and transmitted more efficiently, less expensively, and at high quality. The company's expertise in MPEG encoding and decoding technology has lead to a comprehensive line of MPEG solutions for Macintosh, Windows and Windows NT platforms.

About Media 100/Terran Interactive

Media 100 Inc. of Marlboro, Mass., USA, (NASDAQ: MDEA) is the pioneer of streaming media production tools for the Internet. Since 1993, its award-winning Media 100(R) and IFINish(TM) digital video systems for Macintosh(R) and Windows NT(R) have redefined the digital video industry by making content creation easier, more productive and more affordable for traditional video customers. With over 24,000 systems installed in more than 50 countries, broadcast and cable television, education, corporate training, animation, CD-ROM, DVD-ROM and streaming media for the Internet. For more information, visit www.media100.com. Terran Interactive, a wholly owned subsidiary of Media 100, develops and markets Media Cleaner Pro(TM), which is widely recognized as the industry standard application for preparing the highest quality streaming Internet video. Visit www.terran.com for information about Media Cleaner products.

Certain of the statements in this press release, including the statements relating to Media 100's expectations regarding potential efficiencies are forward-looking statements subject to risks and uncertainties that could cause actual results to be materially different than expectations. Such risks and uncertainties include, but are not limited to, risks associated with the acquisition, transaction costs and the related integration of operations. Investors are advised to read the Company's annual and quarterly reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission for a full description of such risks and uncertainties.