Pinnacle Systems Gains Industry Recognition and Strengthens Its Presence in Mainstream Consumer Market Segments

Market Wire, July, 2008

Pinnacle Systems, Inc., the consumer division of Avid Technology, Inc. (NASDAQ: AVID), today announced that as a result of its ongoing strategy to make video editing and sharing easy for casual users, its customer base is moving beyond the enthusiast marketplace and gaining more users who are new to video but want to take full advantage of the opportunities offered by simple yet powerful tools that enhance their digital lifestyle.

Known for delivering the industry's most innovative, yet easy-to-use solutions, Pinnacle Systems products include Pinnacle Studio(TM) , which is #1 in the consumer video editing market in the U.S. and in major European countries(1) and Pinnacle PCTV(TM) , the #1 selling brand in TV viewing for the PC in the same regions(1). Pinnacle Systems' innovative edge has also been recognized by industry leaders such as Microsoft, which recently named Pinnacle a top finalist for the Microsoft Partner of the Year Global ISV Consumer Special Recognition Award.

"Most consumers just want fast, easy solutions that take the complexity and frustration out of video editing and sharing," explained Tanguy Leborgne, Pinnacle Systems vice president of worldwide marketing. "In fact, our latest survey(2) of Pinnacle Studio version 11 users shows that we are attracting significantly more 'casual users' who are either students, young adults or the 'memory keeper' of their family. Their goals are more about sharing and preserving than solely editing. In responding to the survey, these users said they were more focused on turning still pictures into movies and wanted more guidance while doing this. They're turning out to be more often female and younger than our typical video enthusiast who in the past was as much as 95 percent male and an older demographic."

The innovative new Pinnacle Studio Version 12 builds on this trend. With the new Pinnacle Montage feature, high-end effects and animation capabilities previously available only to professionals are available in automated templates that are easy to learn and use. In addition, Pinnacle Systems' groundbreaking -- and free -- VideoSpin (TM) software is enabling the "YouTube(TM) Generation" to take advantage of fast and easy video editing with single-click sharing to social networking sites.

These new tools are making it easier for consumers of all ages and interests to take advantage of the digital media capabilities of their PC -- a fact recognized by Microsoft in naming Pinnacle Systems a finalist for Partner of the Year. In addition to working closely with Microsoft to ensure the certification of its products on Windows XP and then Windows Vista, Pinnacle Systems was also an early partner on key initiatives like Microsoft Crossfader and the www.ultimatePC.com launched earlier this year by Microsoft for Windows Vista Ultimate users.

The Global ISV Consumer Special Recognition Award honors Microsoft Certified global partners that delivered exemplary solutions for their customers during the past year. "Partners are critical to delivering rich business solutions and innovative excellence to customers," said Allison Watson, Corporate Vice President, Worldwide Partner Group, Microsoft Corp. "Congratulations to the 2008 Partner Award winners who have each demonstrated innovation beyond measure and an unswerving commitment to delivering the highest levels of customer satisfaction. We look forward to these partners continuing to raise the bar in the design and deployment of customer solutions built on Microsoft technologies."

By making digital media more accessible to a greater number of users, Pinnacle Systems is helping to deliver on the promise of a connected, digital world across a broader spectrum of users than ever before.

About Pinnacle Systems, Inc.

Pinnacle Systems, Inc., a part of Avid Technology, Inc., is an industry leader in providing a complete set of home video editing and TV viewing tools for the consumer market. The company's product lines including Pinnacle PCTV(TM), Dazzle®, Pinnacle ShowCenter®, VideoSpin(TM) and its flagship Pinnacle Studio(TM) line, cover the needs and requirements of any level of video storytellers or consumers who simply want to enjoy TV from their computer. Pinnacle Systems has received nine prestigious Emmy® Awards for its technical innovations and carries the commitment to help consumers enhance, preserve and share their memories with ease. For more information, visit www.pinnaclesys.com .

About Avid Technology, Inc.

Avid is a worldwide leader in tools for film, video, audio, 3D animation, gaming and broadcast professionals -- as well as for home audio and video enthusiasts. Avid professional and consumer brands include Avid®, Digidesign®, M-Audio®, Pinnacle Systems®, Sibelius®, Softimage® and Sundance Digital®. The vast majority of primetime television shows, feature films, commercials and chart-topping music hits are made using one or more Avid products. Whether used by seasoned professionals or beginning students, Avid's products and services enable customers to work more efficiently, productively and creatively. Avid received an Oscar® statuette representing the 1998 Scientific and Technical Award for the concept, design, and engineering of the Avid® Film Composer® system for motion picture editing. For more information about the company's Oscar, Grammy® and Emmy award-winning products and services, visit www.avid.com .