InterVideo Home Theater Bundled with Fujitsu Siemens Computers New SCALEO C Entertainment PCs; Delivers Integrated TV, VCR, Music, Photo Slideshow and DVD/VCD Viewing

Business Wire, August 16, 2004

FREMONT, Calif. -- InterVideo(R), Inc. (NASDAQ:IVII) announced today that Fujitsu Siemens Computers, the leading European IT company is offering InterVideo Home Theater(TM) pre-installed with the new SCALEO C PC that is now shipping in Europe, Middle East and Africa. The SCALEO C is a powerful, all-in-one multimedia PC that can be used for both computing tasks and as an easy-to-use entertainment device. InterVideo Home Theater leverages the performance of the SCALEO C to deliver the convenience of a single, complete solution for enjoying TV, videos, VCDs, VCR tapes, photo slideshows and music from audio CD, MP3 or WMA files.

Housed in a stylishly designed cabinet, the SCALEO C is an exceptionally compact (151mm high x 202mm wide x 320mm deep) PC that can be used in the living room. In addition to including InterVideo Home Theater, the SCALEO C PC features Microsoft(R) Windows(R) XP Home Edition as well as the most advanced processors, up to 1GB of RAM, a hard drive with a capacity of up to 200GB, a 6-in-1 card reader, plus four USB ports and one IEEE/1394 port for plug-and-play connection of peripherals. A DVD player and recorder is included for recording and playing video CDs and DVDs. With an optional TV tuner card, the SCALEO C can also be used with InterVideo Home Theater to record television programs to DVD.

By combining all of the most popular digital video and audio features into a single application, InterVideo Home Theater makes it easy for SCALEO C users to access, manage and enjoy their digital content.

Video Playback: To ensure high-quality playback of recorded TV programs, as well as videos downloaded from the Internet, DVDs/VCDs and camcorder clips, Home Theater comes with InterVideo's powerful WinDVD(R) engine, one of the world's most popular software solutions for DVD playback on a PC. Users can also use Home Theater to capture screen snapshots of favorite video scenes and save them as digital pictures on their hard drives. The screen shots can then be viewed or printed using Home Theater's Picture application.

Personal Music Libraries: With InterVideo Home Theater's Music function, users can put all of their music files into a single library. The easy-to-use interface makes it simple to sort songs by title, artist, album or genre and create multiple personalized playlists of music compilations to suit every mood.

Photo Slideshows: InterVideo Home Theater's Picture application enables SCALEO C users to view thumbnail images of photos and sort them by date or name for easy navigation. Photos can even be sent from the remote control device directly to the printer. Home Theater can also be used to automatically create professional-looking slide shows with amazing transition effects. Slide shows can be further enhanced with background music by assigning a playlist music folder to run during the show.

With the remote control that is included with the SCALEO C, users can easily control all of these features while sitting in their favorite recliner.

Availability

The Fujitsu Siemens Computers SCALEO C Entertainment PCs bundled with InterVideo Home Theater will be offered in a broad range of configurations to meet a wide variety of preferences and budgets. For further information please visit: www.fujitsu-siemens.com.

InterVideo markets InterVideo Home Theater to consumers and hardware OEMs. Consumers who want additional home theater features can upgrade to InterVideo Home Theater direct from InterVideo at www.intervideo.com.

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 leading PC OEMs. 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 Home Theater product. 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 10-Q 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.