ArcSoft Provides Online Photo-Sharing Solution to Pakon for Photo Processing Industry.

Business Editors/High-Tech Writers

ORLANDO, Fla.--(BUSINESS WIRE)--Feb. 12, 2001

PMA 

Photo Labs Using Pakon's IMPAK Scanner Can Now Offer

Customers a Co-Branded Online Photo-sharing

Community at PhotoIsland.com

ArcSoft Inc., a leading provider of digital imaging software and Internet imaging networks to global image-centric companies, and IMPAK, a division of Pakon, Inc., a worldwide provider of high-speed scanners to the photo-finishing industry, today announced a strategic alliance that provides customers of photo labs using IMPAK high speed film scanners a direct connection to ArcSoft's online photo-sharing community, PhotoIsland.com.

Prominently integrated links to PhotoIsland(TM) in the IMPAK scanner software will enable thousands of mini labs using these devices to offer their consumers comprehensive photo-editing and photo-sharing capabilities in a single online destination.

With one click, photo labs using the IMPAK scanner will be able to upload their customers' images to PhotoIsland to a customized co-branded login page designed for each lab. Consumers will then have the opportunity to view and edit their photos online, create online photo albums and e-cards, and re-order prints through PhotoIsland (www.photoisland.com). Through a sophisticated tracking system, ArcSoft is able to keep track of individual consumer purchases and share e-commerce revenue with the photo labs that provided the "acquired" customers.

"ArcSoft's turnkey PhotoIsland Network System was a natural fit for the Internet-based component of Pakon's scanning solution," said James Truc, Pakon's president. "ArcSoft was chosen to be included in our software based on their considerable experience and proven reliability as a digital imaging, Internet infrastructure and services provider."

"We are proud to work with Pakon and provide them and their customers with an Internet-based imaging solution that complements the traditional photo-finishing business," said Jeff Mandell, president of the Internet Services Division for ArcSoft. "This relationship enables us to deepen our position within the critically important photo-processing market and continue our momentum as the No. 1 and fastest-growing global provider of Internet Imaging Networks."

ArcSoft's Internet Services Division creates unique, highly interactive, image-centric network infrastructures, and seamlessly integrates them within customers' existing Internet, e-commerce and brand marketing initiatives. These end-to-end Internet imaging solutions typically include: front-end design, an integrated "back office" network infrastructure (including photo uploading, manipulation, archiving, printing, credit card transaction and fulfillment management) and comprehensive set-up, hosting, monitoring and on-going maintenance services.

About Pakon

Founded in 1985, Pakon, Inc., is the largest supplier of photographic slide mounts and mounting equipment in the United States. In 1996, Pakon started the Impak Division of Pakon, Inc. Impak's digital film scanners are among the world's fastest methods of digitizing a roll of film. Pakon slide mounts and mounting equipment are used in photo labs of all sizes. Impak digital film scanners are used in photo labs, newspapers, publishers, police departments, hospitals, and government agencies. Corporate Headquarters, including marketing, administration and engineering, is located in Minnetonka, a suburb of Minneapolis. Pakon's plastic injection molding factory is located in Evansville, Ind. Pakon Imaging Ltd. is a wholly owned Canadian subsidiary. For more information visit www.pakon.com.

About ArcSoft

ArcSoft is an international leader in providing interactive digital imaging/video software and Internet/network solutions to businesses (B2B) that enhance consumers' digital photography and multimedia imaging experience. Founded in 1994 and based in Fremont, Calif., ArcSoft's customers include leading global digital camera, printer, scanner, photography, computer and consumer electronic manufacturers. The PhotoIsland Network System is powering some of the most intriguing photo-centric Web sites on the Internet. Today, the company has Research and Development centers in California's Silicon Valley and Hangzou, China, as well as Sales and Support offices in Asia, Europe and the Americas. For more information visit www.arcsoft.com.

Note to Editors: PhotoIsland is a trademark of ArcSoft, Inc. ArcSoft is a registered trademark of ArcSoft, Inc. All other product names are trademarked or registered by their respective companies.