Bugs Bunny -tm- and Friends Introduce Children to the Creative Possibilities of PC Photography : MGI Software Presents MGI LOONEY TUNES -tm- PhotoFun.

TORONTO--(BUSINESS WIRE)--Nov. 23, 1999--

(TSE:MGI.) MGI Software (TSE:MGI), the leader in digital and Internet imaging solutions, has matched its expertise in consumer PC photo software with Warner Bros.' beloved LOONEY TUNES characters to create MGI LOONEY TUNES PhotoFun, an imaginative PC photo playground and activity center for children. As well as offering a wide assortment of easy to use fun photo fix and enhancement tools, the program contains an extensive array of imaginative project templates that include an all-star line up of LOONEY TUNES characters such as Bugs Bunny(tm), Tweety(tm), and the Tazmanian Devil(tm). Available in stores later this month, MGI LOONEY TUNES PhotoFun will carry an estimated street price of $29.95.

Special help agent, Leo the 'PC Photo' Firefly, and favorite LOONEY TUNES, Bugs Bunny and Daffy Duck(tm), accompany children on their creative adventure, constantly providing guidance, encouragement, and some humorous commentary along the way. MGI LOONEY TUNES PhotoFun, with its broad range of activities and over 150 LOONEY TUNES branded templates, allows children to fashion a host of personalized craft and keepsake projects such as paper airplanes, stickers, postcards, and party invitations. Effortless to create, these and other fabulous projects are also easy to share via email, over the Internet, or even on the fridge by means of a home printer.

"It is amazing to be part of the digital revolution and see technology that was once available only in the realm of professionals become pure child's play," said Anthony DeCristofaro, president and CEO, MGI Software. "MGI LOONEY TUNES PhotoFun offers sophisticated photo-editing tools, a host of advanced paint functions, and intelligently rendered templates, but its most impressive feature, and the only one that matters, is its ability to put smiles on the faces of children." Interactive Interface

Rather than a traditional user interface design, MGI has created an interface that submerges children into Bugs Bunny's Rabbit hole. The program's functionality has been logically separated and placed in different areas of Bugs' home. Because of the visual nature of the user interface, children quickly become familiar with the activities contained in each area, and therefore find it extremely easy to navigate throughout the program. As well as featuring a comfortable environment and a logical workflow, the program's large buttons and sliders, single-mouse-click operations, as well as its animated icons that visually represent their purpose, make it easy for children to apply the program's functionality. Projects Galore

MGI LOONEY TUNES PhotoFun includes an amazing array of rich, high-quality LOONEY TUNES templates, that are separated into seven different fun project categories; Fold-up, Stick-Up, Pen Pal, Party, Make Believe, Coloring, and Fun Mail. Children can easily personalize these projects using many of the photo-editing features found in the Fun Lab or by adding their very own photographs.

Fold-Up includes a number of different paper airplanes and door danglers-an explanation on how to assemble these items is found in the program's extensive online help. Stick-Up projects allow children to make personalized stickers of all shapes and sizes, which can be printed on specialty paper by Kodak and Avery. Pen Pal projects let children keep in touch with friends and family with items they create such as personalized stationary, envelopes, cards, and postcards. Party projects such as gift bags, party hats, and place mats allow children to add a personal touch to any celebration. Children create their own pretend ID Cards, plane tickets and credit cards in Make Believe projects; make a greeting card to suit any occasion in Fun Mail or use MGI LOONEY TUNES PhotoFun's extensive paint tools on one of the Coloring Templates found in Coloring projects. MGI has included a variety-pack of specialty papers to get children started, and in addition supports specialty paper by Kodak and Avery. Photo Fix and Enhance

MGI LOONEY TUNES PhotoFun's Fun Lab tools will provide children with hours of fascination and amusement. Children can decide to fix up a photo by removing red eye, adjusting brightness and contrast or, using the one button Auto Fix. They can enhance photos by changing them to black and white, or by giving them an antique look. In addition, children can apply FX such as Ripple, Twirl, and Pinch to photos with hilarious results.

The Fun Lab contains a variety of props such as LOONEY TUNES characters and funny face enhancements, such as glasses, noses and mouths. All of the props can be effortlessly moved into position, resized, mirrored, flipped, and rotated in the Control Room. MGI LOONEY TUNES PhotoFun also includes a host of paint tools-Pattern Hose, Airspray, Paint Blaster and even Lipstick that children can use to spruce up a photo. Closing out MGI LOONEY TUNES PhotoFun's arsenal of photo-editing tools is the ability for children to add text to their photos. Sharing

The Message Center in MGI LOONEY TUNES PhotoFun gives children all they need to share their work with friends and relatives. The Print Shop allows children to print their photos or projects on their home printers and contains support for Avery and Kodak specialty paper. The Mail Room is where children email photos and creations. The Mail Room connects directly to the child's personal address book, which is part of the program. As with a regular address book, the book is designed to keep track of friends and family members' contact information. If a child has included an email address in a person's listing, that email address will appear as an option when the child enters the Mail Room. At the time of installation, MGI LOONEY TUNES PhotoFun allows the user the option of connecting seamlessly to online photo services by Kodak and Sony.

System Requirements, Availability & Pricing

MGI LOONEY TUNES PhotoFun requires Microsoft Windows 95 or 98. The minimum system required is a Pentium II 266 MMX computer, with 64MB RAM, 145MB Hard Disk Space, SVGA Video Card, 800x600 Screen Area, 16 bit color, CD ROM drive, mouse, and 100% Windows compatible Sound Card.

About Warner Bros. Consumer Products

Warner Bros. Consumer Products, a division of Time Warner Entertainment Company, L.P., is one of the leading and most diversified licensing and retail merchandising organizations which includes a vast library of intellectual properties and the Warner Bros. Studio Stores, including wbstore.com, its e-commerce website. With over 3,700 licensees, Warner Bros. Consumer Products licenses the rights to names, likenesses and logos for a variety of entertainment properties, categories, and Warner Bros. name icons that include LOONEY TUNES, Batman, Superman, Scooby-Doo, The Wizard of Oz, and its many films and television series. Warner Bros. Consumer Products includes Warner Bros. Studio Stores, Warner Bros. Worldwide Licensing, Worldwide Publishing, Warner Bros. Interactive Entertainment, Kids' WB! Music and WB Toys. About MGI Software

Founded 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 by acquiring the assets of Live Picture and expanded its technological leadership to encompass digital entertainment media with the acquisition of Zoran's SoftDVD business. Through its ever-growing network of partnerships with major consumer electronics manufacturers, computer hardware suppliers, software publishers, photo and entertainment companies, 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.

(c) MGI Software Corp., 1999. MGI, MGI PhotoSuite, MGI VideoWave, SoftDVD MAX, Pure DIVA and Live Picture are trademarks or registered trademarks of MGI Software Corp. All other company and/or product names are trademarks and/or registered trademarks of their respective manufacturers.

LOONEY TUNES, characters, names and all related indicia are trademarks of Warner Bros. (c) 1999.