Avid Launches New Division; Edgestreme Systems to Provide Internet Infrastructure Technology for Streaming Media; Avid Links Content Creation to Distribution Over the Web

Business Wire, June 12, 2000

Business/Technology/Entertainment Editors

Streaming Media East 2000

Booth #1117

NEW YORK--(BUSINESS WIRE)--June 12, 2000

Today at Streaming Media East, Avid Technology, Inc. (NASDAQ:AVID), announced the formation of a new division to provide Internet infrastructure technology for the delivery of streaming media and other high-bandwidth content over the Internet. The new division, Edgestreme Systems, leverages Avid's market leadership in digital audio and video content creation and expands Avid's market reach into the exploding Internet infrastructure arena.

Utilizing media and storage network technology developed by Avid for content creators, Edgestreme Systems provides turnkey content delivery systems that allow all levels of service providers, content delivery services and content hosters to rapidly and profitably distribute high quality, dynamic content over the Internet.

"Avid's rich heritage with digital media for the entertainment and information industries gives us in-depth knowledge of the requirements for storing and delivering dynamic, rich content over a network, including the ubiquitous network - the Internet," said David Krall, president and CEO of Avid. "The formation of Edgestreme Systems allows us to focus resources on this new growth area and expand Avid's reach beyond our core tools market. It also enables us to leverage our technology and customer relationships to accelerate the adoption of media over the Web."

Edgestreme Systems' first product, the Edgestreme(TM) Cluster, is a streaming media server purpose-built to provide scalable, high performance in an easy-to-integrate and easy-to-manage turnkey system. The Edgestreme Cluster supports up to 5,000 Mbps of sustained bandwidth and five terabytes of online storage, which equals the delivery of more than 10,000 unique broadband streams live or on demand and the storage of tens of thousands of hours of broadband video content. It is delivered racked-and-ready to plug into an existing Internet connection.

"Streaming video and other rich content on the Web requires a new class of Internet server," said Mike Rockwell, general manager of Edgestreme Systems. "The Edgestreme Cluster was designed specifically to handle the rigorous demands of streaming video and audio to a mass audience. This technology, combined with the resources of Avid and our division's start-up mentality and vigor, positions us well to stake an early claim in the streaming Internet infrastructure market."

About Edgestreme Systems

Edgestreme Systems, the Internet infrastructure division of Avid Technology, Inc. extends Avid's expertise in digital media networks and systems to provide a new class of servers for the delivery of streaming media and other high-bandwidth content over a dynamic Internet.

Headquartered in Tewksbury, MA, Edgestreme Systems' initial product, the Edgestreme Cluster, is a powerful, scalable and easy-to-manage streaming media system. More information can be found at www.edgestreme.com.

About Avid Technology, Inc.

Avid Technology, Inc. is an international, industry-leading provider of digital audio and video solutions for information and entertainment applications. The company's products are used by a variety of customers worldwide, including film, television, Internet and interactive content providers, TV news broadcasters and corporate communicators. For more information, visit Avid's web site at www.avid.com.

(c)2000 Avid Technology, Inc. All rights reserved. Product specifications subject to change without notice. Avid is a registered trademark and Edgestreme is a trademark of Avid Technology, Inc. All other trademarks contained herein are the property of their respective owners.