Ulead VideoStudio 10 Plus Brings High-Quality Surround Sound to Home DVDs; Consumer Video Editing and DVD Authoring Software Includes Support for Creating Soundtracks in 5.1-Channel Dolby Digital Surround Sound

Business Wire, July 26, 2006

TAIPEI, Taiwan -- Ulead Systems Inc. (TSE:2487), a subsidiary of InterVideo Inc. (NASDAQ:IVII), is bringing fresh enjoyment to home video projects by allowing users to create soundtracks in high-quality 5.1-channel surround sound. Ulead(R) VideoStudio(R) 10 Plus video editing software includes full 5.1-channel surround sound support with Dolby(R) Digital 5.1 Creator.

"Surround sound adds enormously to the richness of the video experience," said Eldon C. M. Liu, president of Ulead. "With VideoStudio 10 Plus, one click adds high-quality surround sound in the same format used by professional studios. The results are simply breathtaking."

VideoStudio 10 Plus simplifies the process of enhancing home videos and DVDs with surround sound. A single button enables 5.1 sound in editing projects, automatically converting two-channel audio to 5.1 channels. Individual adjustments for center channel, subwoofer and overall level allow users to quickly mix audio in the video, overlay, narration and music tracks. For precise placement of sounds, a new Surround Sound Mixer lets users drag-and-drop audio to position it within the sound field.

"A simple technique for creating a pleasing surround mix for home movies with a music soundtrack is to leave the audio from the camcorder video untouched while zeroing the center channel level and reducing the overall level by 6 or 12 db for the background music in the music track," said Vinson Chen, VideoStudio product manager at Ulead. "This ensures that important dialog remains clear but still lets you use music to establish mood and emotion. It's what they do in the movies."

"VideoStudio 10 Plus makes it easy for anyone to take video productions to the next level with dramatic and satisfying Dolby Digital 5.1 sound effects. We are very excited to see Ulead bring this powerful technology to home users," said Greg Rodehau, Director, PC Business Segment, Dolby Laboratories.

About Ulead VideoStudio

VideoStudio 10 and VideoStudio 10 Plus are consumer software packages offering easy video editing and DVD authoring. VideoStudio 10 gives users affordable, easy-to-use editing and authoring tools for making great home movies. VideoStudio 10 Plus adds unique and powerful features including multiple overlay tracks, Dolby Digital 5.1 surround sound, iPod(R)/PSP(TM) support and the category's only complete solution for capturing, editing, authoring and playback of high-definition video.

About Ulead Systems

Ulead Systems, Inc. (TSE:2487), a subsidiary of InterVideo, Inc. (NASDAQ:IVII), is a 17-year industry leader in video, image and DVD software. As more people use digital technologies at home, school and the workplace, Ulead software empowers users of all levels with the tools to easily and affordably personalize, manage and share digital content. Ulead is a member of the DVD Forum, participates in DVD Forum Working Groups and is a general member of the HD DVD promotion group. Ulead is also a Contributor member of the Blu-ray Disc Association and serves on the BDA TEG. For more information on the company, its products and services, please visit Ulead's Web site at www.ulead.com.

About InterVideo, Inc.

InterVideo is a leading provider of integrated digital and high-definition multimedia and audio/video content solutions in the PC, CE and wireless industries. The company's broad suite of integrated multimedia software products are designed to enhance the consumer's entertainment experience, whether the content is delivered to a home system, HDTV set, wireless system, mobile or personal multimedia device. InterVideo's unique iMobi(TM) multimedia codec technologies are widely used by Smartphones, GPS units and portable entertainment device OEMs and ODMs to enhance music and video enjoyment ... any place, any time. The firm's worldwide headquarters is at 46430 Fremont Blvd, Fremont, CA, 510-651-0888, InterVideo also has major offices in Taiwan, Japan, Mainland China and around the globe. For more information, visit www.intervideo.com.

Safe Harbor Statement

Except for the historical statements contained herein, the foregoing release contains forward-looking statements, including statements regarding InterVideo/Ulead products. 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.