DVD Lawsuit Reaches the Courts of the UK; MPA initiates a High Court action against 321 Studios.

Entertainment Editors/Business Editors

ST. LOUIS--(BUSINESS WIRE)--Sept. 5, 2003

Last Friday evening, August 29th, 2003, the Motion Picture Association (MPA) filed a lawsuit in the UK High Court against 321 Studios, the manufacturers of DVD backup software. Unmoved by the action, 321 Studios made the following statement:

"Following similar lawsuits in the U.S., we have anticipated this legal action and are fully prepared to meet it head on.

We see the legal action as a positive step as it further highlights the issue of consumers' rights to choose how they manage their personal DVD portfolio. We ardently believe that consumers have a right to backup DVDs they own, just as they are allowed to copy movies they own on to video cassettes and music they own onto audio cassettes, CDs and MP3 players.

To prevent piracy, our software has a four-stage safeguard in place that includes an unalterable, digital stamp that creates a 'fingerprint,' traceable back to the point of purchase.

To continue to provide customers with the ability to protect their property and exercise their fair use rights, we will be releasing several new products in the near future."

Rob Semaan, CEO, will be in London September 8th & 9th to meet with 321 Studios' UK law firm and British media.

In the United States, 321 Studios continues to await the decision of Judge Susan Illston, U.S. District Court, Northern District of California, San Francisco Division, regarding the Hollywood studios' motion for a partial summary judgment in the suit brought by 321 Studios. In April of 2002, 321 Studios filed a Declaratory Relief Action (DRA) seeking the court's assurance that it was not in violation of copyright law and the Digital Millennium Copyright Act (DMCA.)

In their motion for partial summary judgment, the Hollywood studios requested a ruling that 321 Studios' products DVD Copy Plus and DVD X Copy are illegal under the DMCA and should be enjoined. This anticipated ruling could also address 321 Studios' adherence to the DMCA, the constitutionality of the DMCA, and the Court's interpretation of "fair use" rights.

About 321 Studios

321 Studios provides software tools to help consumers protect their investment in digital media, and is the leading provider of DVD backup, repair and recovery software. Founded in 2001, 321 Studios offers a wide range of titles including the phenomenally successful DVD Movie backup titles DVD Copy Plus, DVD X Copy XPRESS, DVD X Copy GOLD, among others. With the success of its DVD software, 321 Studios has become one of the fastest growing software companies in the world. The company is privately headquartered in St. Louis, Missouri, with sales offices in London, England and Berkeley, California. For more information, please visit www.321studios.com or www.dvdxcopy.com.