Ulead Named Top Stock Pick; Company Recaps Financial Standing, Achievements in 2000.

Business Editors

TORRANCE, Calif.--(BUSINESS WIRE)--April 23, 2001

Ulead Systems Inc., a leading developer of video editing, image editing and Web graphics software, was recently acknowledged as the top stock pick among all of Taiwan's publicly traded software companies.

Ulead, the first publicly traded software company on the Taiwan stock exchange, was listed as the "Best Software Investment Pick" in the April edition of TechVantage magazine.

The listing was partly attributed to the company's successful internationalization. The top-10 stock survey was the result of independent telephone interviews with 100 local analysts. TechVantage, which focuses on high technology, is owned by CommonWealth, Taiwan's most prestigious financial publication.

"It is rare that Taiwanese software companies are able to penetrate international markets," Lynn Lin, assistant manager of research at MasterLink Investment Advisory Co. Ltd., was quoted as saying in the TechVantage article. "This is why the most analysts picked companies like Ulead and Cyberlink."

The TechVantage accolade follows a profitable year for Ulead. In 2000, the company achieved net sales of $29.6 million on a consolidated basis, earning a net income of $4.7 million. This represents a 35 percent increase in worldwide revenue over 1999.

In North America, Ulead achieved a profitable year with $9.7 million in revenue, a 28 percent increase over the previous year's numbers. Revenue from retail sales jumped by 60 percent and online sales remained strong as well.

The increase in retail sales was attributed to aggressive marketing in the channel, working closely with software buyers and Ulead branding campaigns in print and radio. This strategy proved fruitful and propelled all of Ulead's software titles into top three rankings on PC Data lists in various categories. PC Data is a leading source of data on retail software sales.

"We've created a healthy platform for us to continue to grow in 2001 and beyond," said Danielle Liao, president of Ulead Systems Inc. "This puts us in an excellent position to partner with more hardware companies as they can be assured that we will be doing business for years to come despite any global or local economic slowdowns."

In 2000, Ulead signed over 70 agreements with leading hardware manufacturers worldwide to include Ulead software titles with their products. Ulead secured worldwide agreements with many companies including Philips Electronics and Logitech. Partners in the United States include Matrox, Creative Technology and Hewlett-Packard.

Recently, Ulead kicked off the new year by unveiling a new logo and slogan, "Creative Intelligence," that sums up the company's goal of supplying affordable cutting-edge digital software that is easy to use. The company's fresh look reflects Ulead's maturity as one of the world's top multimedia software producers. Ulead's decision to introduce a new logo is the result of changes in both consumers' expectations and the software industry.

Ulead products earned several prestigious awards during the year as well. WinMag.com again placed PhotoImpact 6 on its WinList as the top photo editor in its class and selected MediaStudio Pro 6.0 as the top professional video editor. PhotoImpact earned 5 out of 5 stars from PC Magazine, garnered the Best Buy Award from PC World, and appeared on PC Photo Magazine's top 50 products list.

Computer Shopper's top 100 products list included both PhotoImpact and COOL 3D 3.0.

About Ulead Systems

Ulead Systems Inc. develops innovative video, imaging and Web graphics applications to help users communicate their ideas effectively and creatively to audiences around the world.

The company's award-winning products include Ulead(R) PhotoImpact(R), Ulead(R) VideoStudio(TM), Ulead MediaStudio Pro(TM), Ulead Photo Express(TM), Ulead(R) COOL 3D(TM), Ulead(R) GIF Animator(TM), Ulead(R) Photo Explorer(TM), Ulead(R) GIF-X.Plugin(TM), and Ulead(R) COOL 360(TM).

Ulead also supports the burgeoning Web graphics community with a cutting-edge line of WebUtilities software products that focus specifically on Web graphics and animation design. For more information on the company, its products and services, visit Ulead's Web site at http://www.ulead.com or call 800/85-ULEAD (800/858-5323).

Note: Ulead and the Ulead Systems logo are registered trademarks of Ulead Systems Inc. Ulead PhotoImpact, Ulead VideoStudio, MediaStudio Pro, Photo Express, Ulead COOL 3D, Ulead GIF Animator, Ulead Photo Explorer, Ulead GIF-X.Plugin, and Ulead COOL 360 are trademarks of Ulead Systems Inc. All other names used herein are trademarks or registered trademarks of their respective holders.