Media Contact: 
Josef Zankowicz
MGI Software Corp.
905-707-3650
josefz@mgisoft.com

Industry First: MGI Software Turns PC Into Digital VCR
MGI PURE DIVATM Software Suite Unveiled at E3

LOS ANGELES, Calif.-May 13, 1999-Realizing the tremendous potential of PC-powered entertainment, Toronto-based MGI Software Corp. today launched MGI PURE DIVATM at the Electronic Entertainment Expo (E3) Booth #6721. MGI PURE DIVA (Digital Interactive Video and Audio) is a four-in-one software suite that turns a Pentium III® processor-based system into a sophisticated digital home entertainment center, complete with the first digitalVCR(tm) for the PC, a DVD and audio CD player (DVD MAX(tm)), and Time-shift TV capabilities. The product is expected to ship with a majority of 500MHz and faster Pentium III processor-based PCs this holiday season.

"MGI PURE DIVA represents a tremendous opportunity for PC manufacturers to boost Pentium III processor-based system sales by offering entertainment functionality that would cost four figures to duplicate in consumer electronics," said Anthony DeCristofaro, president and CEO, MGI Software. "The fact that this functionality can be offered to the consumer at no extra cost is almost as if PC buyers are getting the next generation of home computing for free." The Company will illustrate this "Pentium III for Free" message with a "Futurama-style" presentation and the giving away of a Pentium III processor-based PC each day of the show.

The most revolutionary elements of MGI PURE DIVA are its digitalVCR (also called a personal video recorder) and Time-shift TV capabilities made possible by sophisticated underlying MGI V3 technologies, which take advantage of the power of Intel's Pentium III processor. These technologies make it possible to simultaneously record and playback video with software, allowing users to control a live broadcast feed in the same way they might control videotape. Users can Time-shift live TV with fast-forward, rewind, instant replay, zoom, pan and even pause functions.

Users not only have control over how they experience and watch TV programs, but also what and when they watch. With the WebTV* for Windows feature of the Microsoft Windows 98 operating system, MGI PURE DIVA supports one-click electronic programming via the Internet. This capability gives viewers total control over TV program schedules to easily capture selected TV shows and store them digitally on the PC's hard drive for playback at a later time.

MGI Software worked closely with Intel and Microsoft Corp. to deliver MGI PURE DIVA and the industry's first commercially available digital VCR for the PC. MGI PURE DIVA is optimized to take complete advantage of the Intel Pentium III processor using the Internet Streaming SIMD Extensions with floating point and fully utilizes Microsoft DirectShow to deliver spectacular video and audio quality.

"MGI's PURE DIVA is a good example of a new generation of applications that take advantage of the Pentium III processor's features and performance to deliver new capabilities for the consumer," said Jeff McCrea, marketing director, Desktop Products Group, Intel. "We are excited about working with MGI Software to provide users with these real-time PC-VCR capabilities on the desktop."

"By building on the Microsoft DirectShow architecture, MGI PURE DIVA uses the full potential of Windows to provide users with excellent quality real-time video," said Bill Veghte, general manager, Consumer Windows Division at Microsoft. "We are happy to be working with MGI on expanding the capture and playback functionality in DirectShow."

In a survey of households last March, the Consumer Electronics Manufacturers Association (CEMA) found that 64 per cent of U.S. household PCs are installed in the den or study while another 30 per cent are found in family rooms near the TV set. With the family room rapidly becoming one of the most popular PC setup areas, MGI PURE DIVA is designed to work anywhere in the home with keyboard control or with an optional programmable remote control and an infrared receiver that can be easily attached to the PC.

"Our software is ideal for those who want to manage their TV viewing, whether it be entertainment or information," said DeCristofaro. "With MGI PURE DIVA, they may want to time-shift to see a replay of a goal while watching hockey, or to write down the URL of an interesting company to invest in while watching the Bloomberg report on CNN."

According to Forrester Research, Inc., Cambridge, MA, "Choice and convenience will drive 14 million consumers to purchase personal video recorders (PVRs) by 2004...PVRs recording capability, combined with features like pausing live TV and instantaneous fast-forward and rewind, will make these devices the fastest-growing consumer electronics category in history".

Chris Shipley, editor and publisher of DemoLetter and Executive Producer of The Demo Conferences, believes the market for PVRs could be broader given the potential for software-only solutions like MGI's. "MGI PURE DIVA delivers a personal and compelling experience that affords us a glimpse into the possibilities of PC-enabled entertainment. Such software coupled with the next generation PCs, including set tops, could lead to PVR ubiquity." MGI PURE DIVA was first publicly previewed at Demo '99, which is the leading computer industry conference on emerging technologies and exciting new products.

System Requirements MGI PURE DIVA requires a minimum 500 MHz Intel Pentium III* processor, minimum 128 MB RAM, 8 GB UDMA or SCSI hard drive, AGP video card with 8 MB RAM, DVD-ROM drive, 16-bit sound card and speakers, TV tuner, and Microsoft Windows 98.

About MGI Software
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 the PC photo and video editing market, with more than 19 million units of its PhotoSuite and VideoWave products shipped in retail and OEM channels spanning 25 countries. Through its ever-growing network of partnerships with major consumer electronics manufacturers, computer hardware and software vendors, photo retailers and the entertainment industry, MGI is uniquely positioned to take advantage of the revolution shaping our digital lifestyles.

MGI Software shares trade on The Toronto Stock Exchange (Symbol: MGI). For more information visit http://www.mgisoft.com. For OEM sales information contact Sean Budnik at 905-707-4712 or seanb@mgisoft.com.