NDS Group and MGI Software Join Forces to Add Photo Editing Capabilities to NDS Interactive Photo Applications.

Business and Technology Editors

LONDON and TORONTO--(BUSINESS WIRE)--Feb. 3, 2000

New Solution Brings Digital Photo Capabilities to TVs,

from Viewing to Editing and Ordering Reprints

NDS Group plc (NASDAQ/EASDAQ: NNDS), a leader in providing business solutions to Pay-TV operators through sophisticated conditional access and interactive technology, and MGI Software Corp. (TSE: MGI), a leader in e-commerce imaging and digital video, said today that NDS will integrate digital imaging software from MGI Software into its NDS Interactive Photo Applications.

Announced earlier this week, NDS Interactive Photo Applications are being jointly developed and marketed by NDS and PictureVision, Inc., an independently operated Eastman Kodak subsidiary. The applications combine TV, digital photography and the Internet to allow consumers to seamlessly view, share, and order reprints of pictures from digital cameras and those stored on the Internet, from their living rooms via digital TV. MGI Software's digital imaging functionality will be integrated into the applications to give users the ability to digitally view, edit and order their photos via their TVs. This will allow consumers to digitally enhance and manipulate their photographs while ordering high quality prints online.

NDS will work with cable and satellite TV operators to make the applications available as part of their service offerings to subscribers, which is expected later this year. By providing access via TVs, NDS Interactive Photo Applications are designed to provide consumers with the easiest way yet to access pictures stored on the Internet's leading photographic sites, including Kodak PhotoNet online. Additionally, the applications are also expected to provide digital camera users with a simple way to download their own personal photographic images for traditional printing at any one of the 40,000 participating Kodak PhotoNet online retailers worldwide.

The integration of MGI's software will extend the applications' functionality by letting consumers also select from a wide range of photo fulfillment services, such as ordering prints in a variety of sizes or purchasing an assortment of distinctive photo gifts by simply using their TV remote controls.

&uot;While digital photography has been rapidly gaining popularity with consumers, the current technology basically limits this experience to PC screens and printers,&uot; said Dr. Abe Peled, president and CEO of NDS. &uot;With Interactive Photo Applications, NDS and MGI Software are moving the photo sharing experience back into the family room where it belongs. Families will be able not only to share their most cherished photos and memories with each other on their TV screens, but also add their own creative touches, and then with the click of a button on the remote, have high quality prints delivered to their doors.&uot;

&uot;This collaboration epitomizes the mass market potential for digital imaging,&uot; said Anthony DeCristofaro, president and CEO, MGI Software. &uot;For the first time, consumers will be able to view, share, edit, order and receive prints with the same comfort and ease they experience watching a soap opera on TV or ordering a pay-per-view program. Our imaging technology has become the most popular on PCs and this effort provides the opportunity to extend our leadership to include interactive TVs.&uot;

Both companies will work closely to develop the new applications, which will integrate NDS' Interactive TV applications and conditional access systems with MGI Software's digital imaging and video software on viewing devices such as set-top boxes, integrated receiver decoders, and ATSC digital television sets that receive satellite, terrestrial, cable or xDSL services.

About MGI Software

MGI Software (www.mgisoft.com) is a pioneer and established market leader in E-commerce imaging and digital video. Its early focus on delivering imaging and video technology to the mass market has led to an ever-growing network of partnerships with major consumer electronics manufacturers, computer hardware and software vendors, photo retailers, media companies, and e-businesses. The Company's intellectual property spans many aspects of imaging and video, including content creation and editing, content encoding and decoding, Internet distribution systems, Web printing, and online navigation or Zoom. As digital imaging and video become commonplace, it will be MGI Software's technologies that are behind the scenes making it work. MGI Software employs over 230 people with offices in North America, Europe, Pacific Rim, and Japan. MGI Software is publicly traded on The Toronto Stock Exchange under the symbol &uot;MGI&uot;.

About NDS

NDS Group plc (Nasdaq/Easdaq: NNDS) is a leading supplier of conditional access software systems and interactive systems to digital Pay-TV broadcasters and set-top box manufacturers, offering open and flexible software solutions for the secure delivery of entertainment and information to televisions and personal computers.

NDS is also a leading provider of broadcast control software that is essential for managing and operating a digital television broadcasting network. The company supplies leading technology, products and services to enable broadcasters and content providers to profit from digital television and associated interactive services. NDS also supplies software to secure and deliver Internet content via data broadcasting and simplify e-commerce transactions. The NDS range of systems and technology is complemented by a wide range of services, including consulting, systems design and integration, support and maintenance.

NDS customers include leading Pay-TV broadcasters worldwide. In the digital satellite television market, NDS customers include DIRECTV in the US; BSkyB in the UK; Galaxy, NetSat and Innova in Latin America; and DIRECTV Japan, STAR TV, Shinawatra Satellite, Telstra, and Sky TV New Zealand in the Asia-Pacific region. Over 15 million viewers of digital television are currently using elements of NDS supplied technology. NDS' customers provide services, using its conditional access systems and smart cards, to over 50% of the world's digital satellite subscriber base. In the emerging digital cable market, NDS customers include Cablevision in the US, Matav in Israel and Madritel in Spain.

NDS, headquartered in the UK with offices worldwide, employs over 900 people and continues to make a major commitment to R&, with over 300 employees dedicated to pioneering development work at research centers in Israel and the UK. NDS is on the World-Wide-Web at http://www.nds.com. NDS' largest shareholder is News Corporation (NYSE: NWS), a global media and entertainment company.

The statements contained in this release which are not historical facts may constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to the plans, projections or future performance of NDS, which involve certain risks and uncertainties, including risk of market acceptance, the effect of economic conditions, possible regulatory changes, technological developments, the impact of competitive pricing and the ability of NDS and its commercial partners to develop systems and solutions which meet the needs of the broadcasting industry in a timely and cost-efficient manner, as well as certain other risks and uncertainties which are detailed in NDS' filings with the SEC.

Company or product names have been used for identification purposes only and may be the trademarks or registered trademarks of their respective companies.

(c) MGI Software Corp., 2000. MGI, MGI PhotoSuite, MGI VideoWave, SoftDVD MAX, Pure DIVA, Live Picture and Zoom Server 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.