Virage Selected for Department of Defense Visual Information Management Project.

Business Editors/High-Tech Writers

SAN MATEO, Calif.--(BUSINESS WIRE)--June 9, 2003

Virage, Inc. (Nasdaq:VRGE) today announced that TranTech, Inc. has chosen Virage to participate in the development of a visual information management system (VIMS) for the Department of Defense (DoD). TranTech is an enterprise management and IT services firm in Alexandria, Va. Through its SmartEncode(TM) products, Virage will provide video capture, indexing, and encoding functionality for the VIMS project. Virage is a leading provider of video and rich media communication software.

The American Forces Information Service (AFIS), an element within the Office of the Secretary of Defense, awarded the multi-year contract to TranTech. Under this contract, TranTech has solicited best-of-breed vendors, such as Virage, to help in the development of the solution. The goal of VIMS is to eliminate manual processing of video and rich media assets, thereby increasing productivity and reducing overall operating costs.

"TranTech is committed to helping the government efficiently manage the onslaught of digital content," said George Kolesar, senior vice president at TranTech. "Our effort combines TranTech's knowledge and expertise with commercial technology from industry leaders such as Virage. This project will result in the government's most advanced digital asset management system that will be able to support content from a variety of sources such as UAV programs or Weapons of Mass Destruction Inspections. VIMS will greatly extend the life of any visual asset gathered by the Department of Defense."

During the initial 210-day deployment, the VIMS solution will be utilized by the AFIS, the Defense Visual Information Center (DVIC), the Joint Combat Camera Center (JCCC), and the Joint Visual Information Services Distribution Activity (JVISDA). The initial deployment will establish a standardized digital asset repository for AFIS, DVIC, JCCC and JVISDA with an e-commerce payment system and digital rights management. The agencies will be able to process and store still images, video, audio, graphics and text documents in a centrally located, 20-terabyte repository that can grow to more than 100 terabytes. Upon successful completion of the initial deployment, the VIMS solution will be available to all DoD and Federal Government agencies.

VIMS will provide a fast, effective and streamlined workflow for capturing and storing the full range of visual assets. Creators of visual assets, such as pictures and videos, will be able to ingest assets in real-time and distribute them immediately to local users as well as the DoD and the general public. During times of military conflict, VIMS will make it easier to handle surge volumes of new content. Additionally, through compliance with the SCORM (Shareable Content Object Reference Model) standard, VIMS will also provide a suite of e-learning and enhanced service capabilities for military and civilian educational activities.

For more information about the VIMS project, please visit http://www.trantech-inc.com/PressReleases/VIMSAward.html. For more information about Virage's government software solutions, please visit www.virage.com/government.

About TranTech, Inc.

TranTech, Inc. is an award-winning, woman-owned professional and technical services firm located in Alexandria, Va. TranTech provides enterprise management and IT solutions and services in support of enterprise operations. Dun & Bradstreet's customer satisfaction assessment ranked the company at 94 out of 100, with no negative comments. D&B also awarded TranTech a financial rating of 3A1, the highest possible rating for a company of this size. TranTech has achieved formal external assessment at Software Engineering Institute (SEI) Capability Maturity Model (CMM) Level 2, Repeatable. Visit TranTech's website at www.trantech-inc.com.

About Virage

Established in 1995, Virage is a leading provider of video and rich media communication software. Virage builds integrated rich media business solutions for corporations, media & entertainment companies, universities and government agencies worldwide. Headquartered in San Mateo, Calif., Virage (www.virage.com) has offices throughout the United States and Europe.

Forward-Looking Statements

This press release contains "forward-looking" statements about the products and services of Virage, as that term is used in Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are denoted by such words as "will provide," "will result," "will be able," "will greatly extend," "will be utilized," "will establish," "will be available," "will make," "will also," and similar terms and phrases. These types of statements address matters that are subject to risks and uncertainties, which could cause actual results to differ materially. In addition, our forward-looking statements should be considered in the context of other risk factors discussed in our filings with the Securities and Exchange Commission, including but not limited to our annual report on Form 10-K and 10-Q filings, available online at http://www.sec.gov. All forward-looking statements are based on information available to the company on the date hereof, and the company assumes no obligation to update such statements.

Virage and VideoLogger are registered trademarks of Virage, Inc. The Virage logo, SmartEncode, VS Webcasting, VS Publishing, VS Production, MediaSync, Virage ControlCenter, ScreenCast and Virage Solution Server are trademarks of Virage, Inc. Other company product and service names may be trademarks or service marks of others, and are hereby acknowledged.