CyberLink Responds to the Latest Allegations of Patent Infringement from InterVideo.

TAIPEI, Taiwan -- Concerning the press release distributed by InterVideo Inc. (NasdaqNM:IVII) stating that the United States International Trade Commission (the ITC) issued a Notice of Investigation with respect to an alleged patent infringement investigation proceeding No. 337-TA-558 (ITC proceeding); CyberLink (TSE:5203.TW) explains as follows:

According to ITC procedural rules, a request for an ITC proceeding is reviewed by the ITC based on a prima facie formality check. The threshold and requirements for a request are low and the ITC thus initiates investigations on almost every request. The commencement of such an investigation does not necessarily indicate that InterVideo's standpoints and position have been accepted by the ITC.

Furthermore, a request for the re-examination of InterVideo's US patent 6,765,788 ("the '788 patent") was filed to the United States Patent and Trademark Office (USPTO), and on November 30, 2005, USPTO issued a non-final office action rejecting all ten claims of this '788 patent due to lack of novelty.

The ITC also ordered an Administrative Law Judge to issue an initial determination concerning whether the investigation should be stayed, pending the completion of the re-examination of the '788 patent. This indicates that the ITC was aware of the possibility of the dismissal of this ITC proceeding due to the lack of a valid and enforceable patent.

CyberLink has a strong respect for intellectual property rights. CyberLink's software and technologies are developed by innovative approaches and methods and free from any potential patent infringements. In addition, all ten claims of the '788 patent by InterVideo were rejected by the USPTO in its non-final office action for lack of novelty. Accordingly, CyberLink reaffirms that it holds a positive and optimistic view toward the result of this proceeding.