MGI Software Announces MGI VideoWave III.

TORONTO--(BUSINESS WIRE)--Nov. 2, 1999--

(TSE:MGI.)

-The No. 1 PC Video Software Made Easy Even Easier Leads The

Consumer Digital Video Revolution-

In its continuing march to consumerize video editing technology, MGI Software Corp. (TSE:MGI), the market leader in PC video software for home and business users, today announced the immediate availability of MGI VideoWave III - PC Video Made Easy Even Easier. MGI VideoWave III includes the industry's most comprehensive support for DV (Digital Video) and includes SmartDV(tm), a technology that accelerates DV video production while maintaining its high quality results. The new release also supports the ability to work with video in MPEG-2, the universal standard format for broadcast. In addition, MGI VideoWave III now makes PC video even easier with a series of new templates for capturing, editing and publishing movies.

Leading The Industry with the Most Robust DV Support

MGI's VideoWave is the first product in its class to offer support for both conventional analogue video capture hardware, including USB cameras, and the new Digital Video (DV) camcorders and PC connection standards (IEEE-1394 / FireWire). The software is designed to enable the coexistence and cross-compatibility of both analogue and DV, so the user can work in one or both formats seamlessly, leveraging investments in their VCR, camcorder and conventional video capture hardware, while moving to digital.

MGI has worked closely with Microsoft, leading IEEE-1394 chip manufacturers including Texas Instruments and Lucent Microelectronics, and DV camcorder manufacturers, to ensure smooth connectivity between camcorder, PC and MGI VideoWave III. The software includes a new set of underlying drivers that supports any OHCI-compliant IEEE-1394 card, making the process of getting DV video in to and out of a computer simply a matter of connecting the camera to the PC and running MGI's software. There are no special or unique configuration settings required, regardless of which combination of camcorder, IEEE-1394 card or PC the user has.

In addition, MGI VideoWave III includes SmartDV, a technology that only renders or produces the parts of a DV video that have been changed (i.e. edited). Rendering only the changed parts dramatically increases the speed in which the final video is assembled, and ensures that the high quality of a DV movie is preserved.

MPEG-2 - The "Broadcast Ready" Standard

Produced using a handheld digital camcorder, the sensational success of the Blair Witch Project has inspired home video enthusiasts everywhere. Now every home grown movie maker can produce a DV-quality movie on a shoestring with VideoWave III that is ready for prime time airing by their local TV station, distribution on DVD or via the Internet. MGI Software has enhanced VideoWa recently, were only found in products designed and priced for the broadcast professional. The software has an improved MPEG engine that supports real-time MPEG-1 and MPEG-2 capture regardless of source, plus the ability to edit and publish in either MPEG standard. The combination of DV and MPEG-2 makes the user 'broadcast ready'.

"VideoWave is not only a tool that makes it easy for the beginner to create great videos from their home camcorder tapes, but it makes it easy for the professional to quickly evaluate a number of different editing options," said Maarten Heilbron, an independent producer for TVOntario and Discovery Channel. By previewing several approaches to a scene, or series of scenes in VideoWave, I save hours in an edit suite. It's given me the ability to find creative and interesting solutions that I never would have tried at $200 or more an hour."

PC Video Made Easy Even Easier

MGI VideoWave III makes it even easier to capture, edit and publish videos in AVI, MPEG (1 and 2), DV and Web video formats. New capture and publishing templates make the video production process easier for both beginners and advanced users. The templates enable new users to simply select the hardware they have and the type of video output they want, without having to figure out and adjust complex settings, such as frame rates and codecs. More advanced users can, of course, edit or create their own templates, saving them for future use. MGI VideoWave III now includes StoryLine templates, for such events as birthday parties, weddings and graduations, as well as business presentations, which provide tips and tricks on how to maker better, more interesting videos.

"VideoWave just gets better and easier," said Marc Camm of Boston, MA, a home video enthusiast and beta tester. "I've been able to piece together some very cool family videos from tapes we forgot we even had, plus new stuff I captured with the DV camcorder I bought this summer. The new StoryLine templates are a great inspiration and the capture and publish templates take the headache out of configuring my system. With a couple of clicks, I was able to create the same video in a high quality format, which I burned to a CD ROM, and one small enough to email to my sister."

Availability & Pricing

MGI VideoWave III is available now through major computer distributors and retail stores including Best Buy, Circuit City, CompUSA, Fry's, J&R, Nationwide, RCS, and Staples, as well as online e-tailers such as Onsale.com. The software typically sells for about $99. In addition, a $20 mail-in rebate coupon is in included in the box for users upgrading from previous versions or competitive products. More information, including system requirements, is posted at http://www.videowave.com/vw3.

About MGI VideoWave

MGI VideoWave was the first video editing application to fundamentally change how video is edited on a PC. Its revolutionary StoryLine allows users to focus on quickly and easily "telling a story" with video. VideoWave has garnered several industry awards and such accolades as the recent roundup review in Home Office Computing (October 1999), which named VideoWave the "BEST BUY", stating: "(VideoWave) is arguably the easiest and best all-around video editor for amateur videographers that we've found." The product has consistently led the market in both retail and OEM (original equipment manufacturers) sales. For example, according to PC Data statistics, the retail consumer video editing market is on track to double this year over last, and VideoWave continues to maintain a 50% or more market share. MGI VideoWave is also included with various video capture cards, like ATI Technologies All-in-Wonder Pro and 128, and comes preinstalled on Compaq Presarios that include an IEEE-1394 option.

About MGI Software

Founded in 1995, MGI Software is one of the world's leading digital media companies. The company's early focus on delivering digital media editing technology to the mass market has led to leadership in digital imaging and video editing worldwide. MGI Software recently broadened its market to business and online users of photography by acquiring the assets of Live Picture and expanded its technological leadership to encompass all digital entertainment media with the acquisition of Zoran's SoftDVD business. Through its ever-growing network of partnerships with major consumer electronics manufacturers, computer hardware and software vendors, photo retailers and the entertainment industry, MGI Software is uniquely positioned to harness the revolution shaping our digital lifestyles. MGI Software employs over 200 people with offices in North America, Europe, Pacific Rim, and Japan. MGI Software is publicly traded on The Toronto Stock Exchange. For more information visit http://www.mgisoft.com.

(c) MGI Software Corp., 1999. MGI, MGI PhotoSuite, MGI VideoWave, SoftDVD MAX, Pure DIVA and Live Picture are trademarks or registered trademarks of MGI Software Corp. All other company and/or product names are trademarks and/or registered trademarks of their respective manufacturers.