ContentGuard Announces New Version of Its Digital Rights Management Solution.

Business Editors/High-Tech Writers

Seybold Publishing 2000

ContentGuard Version 1.3 Allows Internet Distribution of All

Forms of Digital Content, From Music and Video to eBooks

SAN FRANCISCO--(BUSINESS WIRE)--Seybold 2000, Aug. 29, 2000

ContentGuard, Inc., a leading provider of digital rights management (DRM) solutions for all forms of content, today announced ContentGuard Version 1.3, a software platform designed to support Internet distribution of all media and information formats. ContentGuard Version 1.3 will be available in Q4 2000 on Sun Enterprise(TM) servers running the Solaris(TM) Operating Environment and will provide the tools necessary for seamless eContent distribution, from file creation to usage tracking and copyright protection. In addition, eVue, Inc. will be working with ContentGuard Version 1.3 to develop some of the first DRM-enabled MPEG-4 multimedia solutions.

"A major concern faced by the digital content industry is the need for simplicity and seamless operation of the DRM systems they install," said Ranjit Singh, president and COO of ContentGuard Inc. "ContentGuard Version 1.3 provides the answer to this - a single platform that not only manages distribution of all content types but will also serve content owners for the long-term and enable consumers to easily access the content they desire."

ContentGuard Version 1.3 is an open DRM platform featuring full integration of ContentGuard's eXtensible rights Markup Language (XrML), the open specification for association of rights (such as access fees and usage terms) with content. This enables version 1.3 to interoperate with the variety of digital rights systems used by authors, artists, publishers, distributors and retailers. As well as supporting all forms of content, from eBooks and business documents to audio and video, the new solution will also work with a broad range of file types, including .LIT, the file format used in Microsoft eBooks.

"As the demand for streaming and interactive media continues to grow, digital rights management will play a vital role in its distribution and usage," comments John Lynch, CTO and COO of eVue, Inc. "e-Vue is pleased to be working with ContentGuard to develop some of the first DRM-enabled MPEG-4 video and audio solutions. ContentGuard's pilot program affords e-Vue an early opportunity to offer this exciting new solution to the streaming community."

"The ability to protect intellectual property for web based entertainment and media services is essential for building successful, revenue driven e-businesses," said Bill Correll, group manager, Digital and Interactive Media at Sun Microsystems, Inc. "ContentGuard Version 1.3 on Sun systems, provides a reliable, scalable solution for content owners and publishers."

ContentGuard Version 1.3 offers the following elements to customers:

-- Protection Toolkit - provides all tools necessary to protect

digital content, including full encryption and generation of a

user access rights label

-- Distribution Tools - enable content owners to issue protected

digital content to consumers, with features including

storefront creation and license generation

-- Consumer Toolkit - allows consumers to access digital content

by verifying that usage terms and conditions are met and

decrypting files

-- Back Office - provides support for licensing and tracking

usage of digital content, including rights registration and

management, content license generation, user registration and

demographic data reporting. The ContentGuard Version 1.3 Back

Office runs on Microsoft Windows 2000 and Sun Microsystems'

Solaris servers

About ContentGuard, Inc.

ContentGuard, Inc., launched in April 2000, offers digital rights management (DRM) solutions designed to encourage Internet distribution of digital content such as music, eBooks and business reports. ContentGuard's cross-platform technology, originally developed at the Xerox Palo Alto Research Center (PARC), and suite of services allow content owners to manage the digital distribution process by tracking usage, preventing unauthorized access and enabling a range of business models for user access. With operations in McLean, Va., Palo Alto, Calif. and El Segundo, Calif., the company has key relationships with Microsoft Corporation, Xerox Corporation, Adobe Systems Inc., and Reciprocal. For more information, please visit http://www.contentguard.com.

ContentGuard, XrML, and eXtensible Rights Markup Language are trademarks of ContentGuard Holdings, Inc. All other company and product trademarks are the property of their respective owners.

Sun, Sun Microsystems, the Sun Logo, Solaris and Sun Enterprise are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries.