InterVideo Announces DVD-Audio Support for WinDVD5; Takes Lead in Providing Software Solution for Complete DVD-Video and DVD-Audio Playback Enjoyment

Business Wire, August 22, 2003

Business Editors/High-Tech Writers

FREMONT, Calif.--(BUSINESS WIRE)--Aug. 22, 2003

With hundreds of DVD-Audio titles available and thousands scheduled for release by the end of the year, InterVideo Inc. (NASDAQ:IVII) today announced the new optional DVD-Audio Pack for WinDVD(R) 5 Platinum and Gold editions. InterVideo's DVD-Audio Pack enables users to navigate DVD-Audio discs and enjoy a higher-quality music experience.

In addition to supporting DVD-Video and DVD-Audio as well as VCD/SVCD/AudioCD playback, the DVD-Audio Pack automatically detects the DVD-Audio source so users can quickly and easily navigate the audio content to skip tracks, play music and access special audio disc menus. When used with DVD-Audio discs, the unique software enables users to access special features that have been added by the artists such as slide shows, browseable pictures, lyrics and bonus groups.

With the growing availability of DVD-Audio, market researchers forecast strong consumer demand for enhanced stereo and surround sound on PC systems. Jon Peddie, president of Jon Peddie Research in Tiburon, California, noted that more than 50 percent of the US households today have at least one PC that is used to gather news, play games, view picture albums, watch home movies, browse the Internet, conduct online shopping and download/enjoy music and videos.

"Until recently, video quality has been the major focus of hardware and software suppliers' attention," Peddie noted. "But we will quickly see a new consumer computer category emerge - entertainment PCs - that will expand very rapidly. Consumers already understand that advanced software can produce exciting sights and sounds with today's higher-performance PCs."

"In Asia and Europe, where many homes are smaller, there is already a strong demand for PC software solutions that deliver superior audio and video entertainment," said Steve Ro, president of InterVideo. "And in the U.S., consumer demand is increasing for software that provides complete PC-based personal entertainment. A single, centralized solution is ideal for use in student dorm rooms, small apartments, individual's bedrooms and family rooms. The missing ingredient has been a solution that supports DVD-Audio navigation and playback."

Offering broad OS support and hardware independence, the WinDVD 5 DVD-Audio Pack software can be used with a broad range of desktop and notebook PCs. With the DVD-Audio Pack, users will be able to quickly and easily navigate the content of their DVD-Audio discs and enjoy higher-quality audio.

Pricing, Availability

The DVD-Audio Pack is an add-on module for InterVideo's new WinDVD Platinum and Gold 5. The Gold version is available for $49.95 and the Platinum version is priced at $69.95. The DVD-Audio Pack is priced at $39.95. All of the playback solutions are available from leading retailers or at www.intervideo.com. InterVideo markets its WinDVD product line to consumers and hardware OEMs, including manufacturers of PCs, video cards, camcorders, disk drives and consumer electronics products.

About InterVideo, Inc.

InterVideo is a leading provider of DVD software. InterVideo has developed a technology platform from which it has created a broad suite of integrated multimedia software products that allow users to capture, edit, author, burn, distribute, and play digital video. InterVideo's software is bundled with products sold by the majority of the top ten PC OEMs ranked in terms of sales by IDC, as derived from the IDC Worldwide Quarterly PC Tracker, March 2003. The company is headquartered in Fremont, CA with regional offices in Europe, Taiwan, China and Japan. For more information, contact InterVideo at 510/651-0888 or visit the company's Web site at www.intervideo.com.

Safe Harbor Statement

Except for the historical statements contained herein, the foregoing release contains forward-looking statements, including statements regarding InterVideo's product market, product development and future financial performance. These forward-looking statements are subject to risks and uncertainties, and actual results could differ materially due to several factors, including but not limited to the ability to forecast customer behavior and recognize or respond to emerging trends, changing preferences or competitive factors, the market acceptance of our new products and product enhancements, the resolution of any notices of claims regarding alleged infringement of third parties' intellectual property rights, the ability to maintain or expand our relationship with PC OEMS and other risks and uncertainties. Please consult the various reports and documents filed by InterVideo with the U.S. Securities and Exchange Commission, including but not limited to InterVideo's Form S-1/A for other risk factors that could cause actual results to differ. All forward-looking statements are made as of the date hereof and InterVideo disclaims any responsibility to update or revise any forward-looking statement provided in this news release. The results for the quarter and six months ended June 30, 2003 are not necessarily indicative of InterVideo's operating results for any future periods.