MGI Software Obtains U.S. Patent for Client/Server Image Distribution Systems for Tiled Images.

LAS VEGAS--(BUSINESS WIRE)--Nov. 16, 1999--

(TSE:MGI.)

ImageScape '99-MGI Software (TSE:MGI) announced today that it has obtained U.S. patent No. 5,968,120 for its Image Server and Viewer software, which has been widely adopted by e-tailers as a key-selling aide. MGI's patented technology allows e-tailers to create highly interactive, photo realistic environments where consumers can examine goods in detail on Web pages unencumbered by low-bandwidth connections. Leading companies in the U.S. and Japan, are utilizing MGI's Image Server on their Web sites to not only increase sales but also to improve service and build customer loyalty.

"This patent, together with other image-editing patents MGI Software acquired through the purchase of Live Picture's assets amount to a tremendous arsenal of technologies for enabling Internet imaging," said Anthony DeCristofaro, president and CEO, MGI Software. "As Internet image sharing, viewing, editing and printing become commonplace, it will be MGI Software's technologies that are behind the scenes making it work."

As well as driving imaging on the Internet, MGI's patent portfolio includes many technologies that enable compelling digital-imaging solutions for PCs and other devices. For example, MGI's portfolio includes several U.S. and foreign patents covering FITS, a technology that enables resolution-independent non-destructive image editing. The resolution-independence enables a user to edit an image at any zoom level, and be able to render them at any zoom level. Thus fine detail edits can be applied to a user adjustable zoomed-in display of a portion of an image, and coarse detail edits can be applied to a zoomed-out display. Moreover the edits can be rendered at video monitor or print quality resolution. The non-destructiveness means that each editing layer can be independently applied or suppressed, which allows a user to undo some or all edits, even after the edited image has been saved. Since the edit parameters are small amounts of data, they can be quickly transmitted over the Internet, providing a powerful facility for remote editing applications.

The FITS patents have priority dates as far back as 1993, when Live Picture first began developing software that enabled fast editing and rendering for large hiqh-quality images on personal computers. Since then, Live Picture broadened its technology to include virtual reality imaging, Internet image servers and non-PC embodiments of FITS.

"From its inception in 1993, Live Picture has always been patent-conscious and pro-active with filing patent applications for its many imaging inventions," said Marc Berger, chief scientist, MGI Software. "Today, the Live Picture patents and patent applications span all aspects of Internet and desktop imaging, from development studio content creation, to content editing, to Internet content distribution systems, and to interactive content viewing." U.S. Patent No. 5,963,213, another recently issued patent of MGI's, covers interactive navigational viewing of panoramic images.

"MGI Software is well positioned to meet the needs of business and consumer imaging," said Kristy Holch, principal, Info Trends Research Group. "The company has developed unique digital imaging strengths to apply in e-commerce, over networks, in kiosks and appliances, and in PC-based editing."

MGI's digital and Internet imaging product line includes PhotoSuite III, PhotoVista, Reality Studio, Zoom Server and Zoom Viewer. MGI also markets non-PC-editing applications, such as photo kiosks. "It's in the non-PC area--the kiosks, the Internet appliances and the wireless devices, where we expect to see the fastest market growth and the broadest customer base for our FITS technology...and the most exciting technology challenges as well," said Berger.

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 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 suppliers, software publishers, photo and entertainment companies, MGI Software is uniquely positioned to benefit from the digital revolution shaping our 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.