Cresta Systems Licenses Video Compression Technology to Logitech; Technology Incorporated Into Logitech QuickCam Family.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 10, 2000

Cresta Systems, specialists in Internet video publishing technology, has licensed its video and audio compression technology for use in the Logitech(R) (Nasdaq:LOGIY) family of QuickCam(R) Internet video cameras. The technology enables QuickCam users to save their video clips as "videomails," self-opening files which are so small that they can easily be emailed over a dial-up connection. Cresta's technology has been incorporated into the newest range of QuickCam products, available later this month.

This announcement follows an existing agreement whereby Logitech includes CrestaCards(TM) Video Greetings software with all QuickCam Internet video cameras. With this software, QuickCam users can add personal video messages to electronic greeting cards and send them to friends and family via Cresta's cardsAlive.com site.

Junien Labrousse, vice president of Logitech's Video Business Division, commented: "Since 1998, when we first incorporated Cresta's video player into the line of QuickCam products, we have sold over three million QuickCam Internet video cameras. The key to this success, in our opinion, is simplicity. For example, it couldn't be easier to record and send a video email to a friend. Cresta's compression technology helps us to improve the quality of video clips while maintaining this simplicity."

Using Cresta's compression technology, a 15-second video clip can be compressed into a file as small as 120 Kb, including the self-executing player. Unlike streaming video solutions, the clip requires no plug-ins, can be viewed offline, and playback is therefore not affected by the speed of the Internet connection. This technology is at the core of CrestaCards Publisher, the company's Web video publishing product.

Alessandro Gatti, president and chief executive officer of Cresta Systems, Inc., said: "93% of Americans still access the Internet over a dial-up connection when surfing at home(a). For these people, viewing video over the Web is extremely problematic. Our technology is for them. It can generate the smallest video clips in the industry and, until broadband connections are the norm, we firmly believe that this approach is the best way for home users to view short video clips on the Web."

Logitech QuickCam Internet Video Cameras

Compatible with both Windows(R) 98 and Windows(R) 2000, Logitech QuickCam Internet video cameras include a combination of hardware and software that is easy to install and use. Users simply plug in the camera, install the software, and push a button to record a video or snap a photo. Sending video e-mail or photos over the Internet requires merely a single click, as the one-click attachment feature does all the work. On the receiving end, no special hardware or software is required -- another click displays the video e-mail or photo on most computers.

About Logitech

Founded in 1981, Logitech designs, manufactures and markets human interface devices and supporting software that link people to the Internet and enable them to work, play, learn and communicate more effectively in the digital world. Logitech's interface products include Internet video cameras; input and pointing devices such as corded and cordless mice, keyboards and optical trackballs; multimedia speakers; and interactive gaming products such as joysticks, gamepads and racing systems.

With operational headquarters through its U.S. subsidiary in Fremont, California, and regional headquarters through local subsidiaries in Romanel, Switzerland, and Hsinchu, Taiwan, R.O.C., Logitech International is a Swiss public company traded in Switzerland under the symbols LOGN and LOGZ, and in the United States on the Nasdaq National Market System (LOGIY). The company has manufacturing facilities in Asia and offices in major cities in North America, Europe and Asia Pacific.

About Cresta Systems, Inc.

Founded in 1994, Cresta Systems, Inc. develops Web video publishing solutions that allow anyone to record, post and deliver video clips over the Internet. Its proprietary compression software, CrestaCards(TM), powers self-executable electronic video clips that are viewable with narrowband connections and require no plug-ins or players. Examples of its use include product demonstrations, real estate tours, video business cards, video advertisements, and news clips. CrestaCards technology is also featured at www.cardsAlive.com, an electronic greetings card site. Cresta Systems can be found at www.cresta.com.

(a) Source: Nielsen NetRatings