InterVideo Unveils PC/CE Convergence Solution for OEMs at SBS.

Business Editors/High-Tech Writers

System Builder Summit

BARCELONA, Spain--(BUSINESS WIRE)--May 4, 2004

Single Software Solution Enables Manufacturers to Quickly

Introduce PCs With InstantON CE-like Home Entertainment

Functions With Remote Control of TV, Video, Music

InterVideo(R), Inc. (Nasdaq:IVII), a leading provider of middleware solutions for consumer electronics and PC manufacturers, announced today that it will begin delivering its innovative InstantON technology to OEMs and PC system producers for barebone and notebook systems that will begin appearing on the market in Q2 of this year. Produced by nearly a dozen manufacturers, these systems will provide customers with all of the benefits of a consumer electronic (CE) device on a PC. During demonstrations at the System Builder Summit (SBS) here this week, computer manufacturers and system integrators will see how they can quickly and economically incorporate InterVideo's technology to offer consumers InstantON-based systems with all of the features and capabilities of a complete home entertainment center and a personal computer.

InterVideo InstantON is a modular solution that is a new concept in PC/CE convergence. InstantON delivers TV, radio, music, videos and burning to DVD with the fast, CE-like access and the remote control consumers expect. With InstantON, systems instantly spring to life with a push of the button. People can watch DVDs and home VCDs, browse photo albums, and listen to rich surround sound music or watch TV. With the advanced PVR capabilities, InstantON can be used for time-shifting TV programs so users can pause and replay live TV as well as record favorite shows for later viewing. The software is enhanced with basic editing and DVD burning tools that allow users to cut, merge and split recorded TV programs and videos. Edited videos can be quickly burned directly to a DVD disc for viewing in their living room, on their laptop or shared with family and friends.

InterVideo InstantON's dual-boot configuration, which is being incorporated into systems from Fujitsu, Sharp and others, allows a single PC to be used for both computing tasks and entertainment. Without launching the standard Windows(R) OS, all of the multimedia activities consumers have come to expect from a complete home entertainment center can be accessed using a remote control, similar to a CE-device. When consumers want to use the PC to access their work-related files or the Internet, they can easily move into the Windows mode which requires the full Windows load time.

"In today's hyper-competitive environment product differentiation and time-to-market are major concerns for computer manufacturers and system developers," Andy Kuo, managing director of InterVideo Europe, noted. "As a result, barebone system manufacturers such as AOpen, Jetway, MSI and ASUS as well as notebook producers like Quanta, Wistron, and Uniwill have begun offering InstantON-ready products to their OEM and system customers. The new breed of InstantON-based PCE products give the consumer the best of home entertainment and computer work processing in a single economic solution."

InterVideo InstantON incorporates the reliability and power of InterVideo WinDVD(R), and LinDVD(TM) the playback/navigation software selected by industry leaders for their PCs and high-end CE devices. The Instant Media Technology (IMT) technology incorporated in the new Linux(R)-based software integrates the BIOS, OS, power management, and noise control with InterVideo's media playback/recording/editing technology, enabling consumers to enjoy the Instant access and remote control-only CE experience on their PC. In addition, the PVR functionality is based on InterVideo's award-winning WinDVR(TM) and LinDVR(TM) products for viewing TV on a PC with time-shifting functionality, giving the user complete control of their TV experience.

By including remote control support for the multimedia features, InstantON makes moving from one entertainment application to another as fast and easy as changing the channel on a TV set. Users simply push the Play button to watch DVDs, VCDs, and home videos with outstanding clarity; listen to music with rich surround sound; and watch or record TV programs -- all from the comfort of their living room couch.

Kuo noted that InstantON represents the true beginning of PC/CE convergence that people increasingly demand for their digital homes. "Even people who have never used a computer can use the remote control-only solution for their entertainment and never bother with a keyboard or mouse," he added. "They can enjoy their videos and music, take advantage of the TV/PVR functions, use the digital video recording and Web capabilities; and if they want to take a break, they can use the PC capabilities for their school, office and home work processing."

Availability

InterVideo InstantON is currently available from InterVideo only to OEMs for evaluation and integration and is not sold as stand-alone retail software. The modular nature of the product enables OEMs and middleware developers to create customized solutions and to incorporate only the features that are required for a particular device. InstantON includes the OS, BIOS, drivers, modules (engines), applications, user interface and remote controller. InterVideo also offers consulting services to assist OEM and integrator InstantON customers with product planning and customization, hardware driver fine-tuning, inter-company software integration, planning test procedures and product updates.

About InterVideo, Inc.

InterVideo is a leading provider of DVD software. InterVideo has developed a technology platform from which it has created a broad suite of integrated multimedia software products that allow users to capture, edit, author, burn, distribute, and play digital video. InterVideo's software is bundled with products sold by the majority of the leading PC OEMs. The company is headquartered in Fremont, CA with regional offices in Europe, Taiwan, China and Japan. For more information, contact InterVideo at 510-651-0888 or visit the company's Web site at www.intervideo.com.

Safe Harbor Statement

Except for the historical statements contained herein, the foregoing release contains forward-looking statements, including statements regarding InterVideo's InstantON, WinDVD, WinDVR, LinDVR and LinDVD products. These forward-looking statements are subject to risks and uncertainties, and actual results could differ materially due to several factors, including but not limited to the ability to forecast customer behavior and recognize or respond to emerging trends, changing preferences or competitive factors, the market acceptance of our new products and product enhancements, the resolution of any notices of claims regarding alleged infringement of third parties' intellectual property rights, the ability to maintain or expand our relationship with PC OEMS and other risks and uncertainties. Please consult the various reports and documents filed by InterVideo with the U.S. Securities and Exchange Commission, including but not limited to InterVideo's Form 10-Q for other risk factors that could cause actual results to differ. All forward-looking statements are made as of the date hereof and InterVideo disclaims any responsibility to update or revise any forward-looking statement provided in this news release.

InterVideo and WinDVD are registered trademarks and WinDVR, LinDVR and LinDVD are trademarks of InterVideo, Inc. All other trademarks are the property of their respective holders.

Editor's Note: Andy Kuo, managing director of InterVideo Europe, will be available to meet OEMs, system developers and members of the press at SBS at the Hotel Rey Juan Carlos in Barcelona. To schedule individual appointments, please contact Andreas Pestke at [phone] or via email: [e-mail].