MGI Software Working with Lucent Technologies to Ensure Hardware and Software Compatibility for IEEE 1394

Business Wire, August 17, 1999

TORONTO--(BUSINESS WIRE)--Aug. 17, 1999--

Standard to Fuel Adoption of PC Video in Consumer Market.

MGI Software Corp. (TSE:MGI) today announced it is working with Lucent Technologies (NYSE:LU) Microelectronics Group, the world leader in communications semiconductors, in an effort aimed at the expanding market for IEEE 1394 (FireWire) technology.

MGI Software will provide direct support for Lucent's recently introduced FW323, a single-chip IEEE 1394a host link and PHY IC (integrated circuit) in MGI's industry-leading VideoWave consumer video editing software. IEEE 1394 is the key component for bringing exceptionally high quality video from a Digital Video (DV) camcorder into a computer for editing.

"We're aiming to make 1394 as vital in computers as modems are today," said Mark Richman, 1394 product manager with Lucent's Microelectronics Group. "Our work with MGI will allow software applications, for example, video editing, to take advantage of the benefits of this technology. IEEE 1394, along with end user applications such as VideoWave, allow computer companies to offer mainstream consumers an easy-to-use, feature-rich multimedia environment."

Lucent is working closely with Microsoft and MGI to ensure compatibility and operability between the Lucent 1394 IC, Microsoft's Windows operating systems and MGI's software to make video editing a hassle-free, creative experience. Four major computer companies now provide IEEE 1394 connectivity on their systems, and more are expected to introduce it by the end of the year.

"We are excited about this relationship with Lucent, as they are one of the industry's main driving forces for the widespread adoption of 1394 on computers," said Anthony DeCristofaro, MGI Software president and CEO. "By supporting the Lucent 1394 IC into our software, the integration of the PC, DV camcorder and VideoWave software will be a seamless one, and the combination a very attractive solution for PC OEMs that include 1394."

"Such relationships will accelerate the delivery of the camcorder-ready PC to consumers," said Carl Stork, general manager Windows Hardware Strategy and Evangelism at Microsoft Corp. "DV support is built into Microsoft Windows 98 Second Edition based on Microsoft's WDM driver and DirectShow streaming technologies. With this support in Windows, capturing and editing digital video with a product like MGI VideoWave will be as simple as installing the application and plugging your camera into the IEEE 1394 port on your Windows-based PC."

"A long-standing lack of standardization and co-operation has hindered the general acceptance of 1394," said Mark Kirstein, vice president of research at Cahners In-Stat Group. "However, with 1394 IC integration, comes the inherent benefit of economies of scale. Add support of DV to the Windows operating system, and applications that specifically utilize 1394 connections, and you have the ingredients to mark 1999 as the beginning of DV video via IEEE 1394 in mainstream computing."

IEEE 1394 is a high-speed serial data link that enables any DV (Digital Video) camcorder to connect to a PC. Through IEEE 1394, consumers can easily bring in video clips from any DV camcorder for editing. The standard also enables users to directly control their DV cameras within MGI's VideoWave software simplifying the once complex and arduous task of capturing and outputting video between a camcorder and computer. Lucent's FW323 single chip solution promises to drive IEEE 1394 to be standard fare for all PCs, as either an add-in board or as an integral part of a computer motherboard.

MGI Software recognized the DV and 1394 opportunity with the release of VideoWave II last fall, which became the first product in its class to enable consumers to edit DV. The software was also the first to fundamentally change how video is edited through its intuitive StoryLine, which allows users to focus on "telling a story" with video. According to PC Data statistics, the retail consumer video editing market is on track to double this year over last, and VideoWave continues to maintain a 50 percent or more market share. MGI VideoWave is also bundled with various video capture cards, like ATI Technologies All-in-Wonder Pro and 128, and comes preinstalled on Compaq Presarios that include an IEEE 1394 option.

About Lucent Technologies

Lucent is a member of the 1394 Trade Association, a group of some 170 companies that supports the development of computer and consumer electronics systems that can be easily connected with each other via the IEEE 1394 serial multimedia link.

Lucent Technologies designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronics components. Bell Laboratories is the research and development arm for the company. For more information on Lucent Technologies, headquartered in Murray Hill, N.J., USA, visit its web site at http://www.lucent.com.

Lucent's Microelectronics Group designs and manufactures integrated circuits and optoelectronic components for the computer and communications industries. More information about the Microelectronics Group is available from its web site at http://www.lucent.com/micro.>