Microsoft Xbox 360 Launched With InterVideo DVD Engine Playback Software; Software Supports DVD Video Playback and Windows MCE Playback Using the Xbox 360's Remote Control

Business Wire, Feb 8, 2006

FREMONT, Calif. -- InterVideo(R), Inc. (NASDAQ:IVII) announced today that the new Xbox 360(TM) video game and entertainment system from Microsoft(R) Corporation (NASDAQ:MSFT) includes the award-winning DVD engine from InterVideo's WinDVD(R) for video playback. InterVideo previously announced the licensing agreement with Microsoft last May.

The much-anticipated Xbox 360 provides consumers with a high-definition gaming experience, multi-channel audio fidelity and high-quality DVD playback, making it a highly versatile entertainment solution for today's digital lifestyle.

In addition to providing standard DVD features, InterVideo's DVD playback software delivers support for display on high resolution progressive and interlaced monitors as well as decoding high definition television content.

When the Xbox 360 is combined with a Windows(R) XP Media Center (MCE) 2005-based PC, users have a complete home entertainment center that can control everything from watching and recording live television, to playing and recording digital music, to viewing and manipulating video, DVDs and photos. A Designed for Windows XP Media Center Edition Partner, InterVideo has ensured that the DVD playback software bundled with the Xbox 360 works seamlessly in MCE environments.

"Microsoft is very pleased with the work InterVideo has done to deliver high-quality movie playback on the Xbox 360 and its work in PC/CE convergence," said Ray DiCasparro, Director of Business Development, Microsoft Entertainment. "InterVideo's DVD playback engine complements both the Xbox 360 and Windows XP Media Center Edition technology while providing consumers with a more CE-like experience on their PC."

"With the launch of the Xbox 360, Microsoft is delivering much more than a powerful game-playing device," said Steve Ro, InterVideo CEO and President. "The new Xbox has earned its place in the living room by offering a full range of home entertainment functions. We're delighted with the role InterVideo DVD playback software will play in making the entertainment capabilities of the 360 even more enjoyable."

The Xbox 360 is now available in the US, Europe and Japan. Launches will follow in Mexico and Columbia on February 2, Korea on February 24, Hong Kong, Taiwan and Singapore on March 2, and Australia and New Zealand on March 2. Microsoft hopes to ship 4.5 million to 5.5 million Xbox 360 systems by June 2006.

InterVideo's WinDVD playback engine is incorporated in over 125 million installations worldwide for both personal computer and consumer electronics devices. InterVideo's DVD playback engine is available for licensing to OEMs, system integrators and platform builders in PC, CE set-top boxes, handheld mobile devices, and video game consoles.

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. 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 WinDVD product. These forward-looking statements are subject to risks and uncertainties, and actual results could differ materially due to several factors and our relationship with Microsoft, including but not limited to the market acceptance of Xbox 360, 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.

Xbox, Xbox 360, and Xbox Live are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries.

InterVideo and WinDVD are registered trademarks. All other trademarks are the property of their respective holders.