Date: September 17, 2002

MedioStream Releases New Version of neoDVD Suite of Software

Updated Version Includes Industry First Video Recording (+VR) Support and the NEO TaskBar

SAN JOSE, CA (September 17, 2002) – MedioStream, a leading provider of PC-based software for recording video to DVDs and CDs, today announced the release of neoDVDstandard 4.0 and neoDVDplus 4.0. The new versions of MedioStream's popular neoDVD suite of software will feature the NEO TaskBar, a unique approach to DVD creation that greatly enhances ease of use, and industry-first Video Recording (+VR) support for DVD+RW drives, which allows users to update finished DVDs. These enhancements - along with MedioStream’s patent-pending “Direct-to- Disc Recording” and “Smart Buffering” features - continues the company's tradition as a trailblazer in the DVD authoring arena, with the fastest and easiest to use solution on the market today.

MedioStream’s industry-standard Video Recording (+VR) support for DVD+RW drives allows users to create a DVD, add or delete clips later and burn the video again onto the same disc, without recreating or reburning another disc. This allows users to burn DVD discs in much the same way that they are used to recording onto a VHS tape. On discs created in the DVD+VR format, users can even add video using +RW DVD set-top recorders, and then use neoDVD to edit and customize it on the PC. Users no longer have to buy multiple DVDs to save their favorite TV shows, movies or home video footage on DVD. No other DVD authoring software offers this interoperability between the VCR, TV, DVR, and PC.

“With the convergence of consumer DVD devices, it doesn’t really benefit the consumers if all they can do is edit the DVD disc on the PC and nowhere else,” said Gordon Doran, MedioStream Vice President of Sales and Marketing. “With neoDVD, they can easily burn their own DVDs on their PC, add video clips from TV or other devices using DVD set-top recorders, and show the finished disc on the PC or TV.”

The new NEO TaskBar gives users a single point of entry to author DVDs. Users will be able to access each functional module (capture video, create/edit video, and copy video) via the NEO TaskBar, which rests on the desktop once the application is launched. Each functional module has its own unique interface, and all the options specific to that function are presented on one, easy-to-understand interface. By using modules with their own distinct interface, the NEO TaskBar allows users to focus on what the specific task they wish to accomplish instead of trying to figure out how the software works.

“MedioStream focuses on what the consumer wants, producing software that anyone can use,” Doran continued, “Our mission is to have the technology happen behind the scenes, so that consumers only need to focus on what they want to do. neoDVD 4.0 is a major leap forward, and combined with a cost beginning at $30, it will continue to keep us ahead of our competitors."

Other neoDVD 4.0 Highlights:

Key features of neoDVDstandard 4.0 include the ability to:

Go directly from VCR to DVD
Go directly from digital or analog camcorder to DVD
Go directly from TV to DVD
Increase performance by bypassing the PC’s hard disk drive to create DVDs using Direct-to-Disc Recording™
Reduce the minimum hard disk drive requirement to create DVDs by using Smart Buffering™
Add or delete video clips on DVDs already created using +VR
Set video quality with respect to length of playback (High, Medium, Low)
Input AVI, QuickTime, DV, MPEG-1 and MPEG-2 files
Create DVD or VCD files
Create MPEG-1, MPEG-2 and AVI files
Copy from existing non-commercial DVD or VCD disc to HD, recordable DVD or CD drives
Preview video before burning to CD or DVD
Burn DVD or VCD videos onto CD discs
Burn DVD videos onto DVD discs
Basic editing (custom menu background, custom frames, menu layout, audio samples, .wav or MP3 audio overlay, and simple transitions, etc.)
Hierarchical menu structure
Set automatic chapter breaks
Capture still image from video to set chapter thumbnail

neoDVDplus 4.0 offers all the benefits of neoDVDstandard 4.0 plus the ability to:
Create a DVD or VCD Slide Show with still photos (.bmp and .jpg)
Set Moving Menus
Add video with Dolby® Digital audio
Create disc labels using labeling software and label maker (included with the boxed version only; not available with electronic software download)

Pricing and Availability
neoDVDstandard 4.0 is available at www.mediostream.com at a price of $29.99 for the Electronic Software Delivery (ESD) download version. neoDVDplus 4.0 is available is available at www.mediostream.com at a price of $49.99 for the ESD download version or $59.99 plus shipping and handling for the boxed CD version. neoDVDplus 4.0 will also be available at OfficeMax, CompUSA, Fry’s Electronics, and Micro Center by the end of October.

About DVD+RW Video Recording (DVD+VR), Direct-to-Disc Recording™, Smart Buffering™

MedioStream’s DVD+RW Video Recording (DVD+VR) support for DVD+RW provides users with VHS VCR-type capabilities for creating and updating DVDs on the PC. Any disc created that follows the DVD+ RW Video Format specifications v 1.1 may be updated by another product (hardware or software) that follows the DVD+RW Video Format specifications v 1.1. So if users create a DVD+RW disc with DVD+VR format using neoDVD or a 3rd party application, they can load the finished disc into neoDVD, add/delete video clips, rearrange the contents of the disc, and then recreate the DVD while maintaining the playback compatibility by existing DVD video players. With DVD+VR, neoDVD allows users to create DVDs that can be re-edited over time, thereby maximizing disc usage through re-write and reuse of space.

“Direct-to-Disc Recording” allows users to turn old home movies and videos into DVDs in a simple, truly one-step process, instead of having to use the PC first as a buffer to create a disc image for burning. This reduces hard disk drive requirements and makes the process of creating a DVD easier than ever. “Direct-to-Disc Recording” is compatible with all commercially available DVD+RW drives.
“ Smart Buffering,” compatible with all commercially available DVD-R/RW and DVD+RW drives, allows users to reduce the minimum hard disk drive requirements on PCs that are too slow to achieve real time DV to DVD transcoding, or where system resources are being used for different tasks. Typically, when a PC lacks the minimum processing speed required for real-time performance, the software will buffer the incoming DV video onto the hard disk drive while waiting for the CPU to finish its current task. With “Smart Buffering,” neoDVD will cause the camcorder to pause instead of buffering the video on the hard disk drive. By automatically controlling the camcorder, neoDVD can perform DV to DVD transcoding on PCs having as little as 400MB of hard disk space when using a DVD+RW recordable drive.

System Requirements
neoDVDstandard 4.0 and neoDVDplus 4.0 are compatible with Microsoft Windows 98SE, Me, 2000, and XP. Both applications require an analog capture card or an OHCI-compliant FireWire connector; AGP graphics card with 8MBs memory; minimum 700MHz Intel Pentium 4, Pentium III, Celeron or AMD Athlon processor (1.1 GHz and above for real-time performance); 128MB of memory; 5GB free hard drive; DirectX 8.0 or above.

About MedioStream
MedioStream, Inc. delivers the latest digital video technology to the consumer market through innovative, simple and easy-to-use software solutions. MedioStream's digital video solutions include real-time authoring software and multiformat conversion options. As a leader in Host Signal Processing (HSP) technology, MedioStream pioneered the first real-time software MPEG-2 and DVD codecs, which can greatly enhance the functionality and features of digital VCR, DVD authoring, video streaming, and video editing applications. MedioStream is the first company to offer a complete end-to-end software solution that integrates real-time DV to MPEG-2 conversion with DVD authoring and burning, revolutionizing the ease and speed with which the average camcorder user can capture, edit, compress, author and burn DVD files onto their recordable drives. Founded in September 1998, MedioStream is based in San Jose, California. For more information, please visit www.mediostream.com.

MedioStream, neoDVD, NEO TaskBar, Direct-to-Disc and Smart Buffering are trademarks of MedioStream, Inc. Other product names are either trademarks or trade names of their respective holders.