Date: July 18, 2002

MedioStream Releases Version 4.0 of neoDVDstandard with Video Recording (VR) Support for DVD+RW Drives to OEM Partners

First Industry Standard VR Feature Provides Greater Interoperability Between Consumer Electronics Devices

SAN JOSE, CA (July 18, 2002) - MedioStream, a leading provider of PC-based software for recording video to DVDs and CDs, today announced the release of neoDVDstandard 4.0 for bundling with original equipment manufacturers (OEM). This latest version of neoDVDstandard provides enhanced ease of use, with the introduction of the NEO TaskBar, while offering the first industry-standard Video Recording (VR) support for DVD+RW drives, which allows users to update finished DVDs directly on DVD+RW discs created on the PC using a +RW DVD burner or recorded from a +RW digital video recorder (DVR).

Designed specifically for consumers, neoDVDstandard provides a simple and straightforward way to create DVDs or VCDs. While previous versions offer one interface to access all the functions, in neoDVDstandard 4.0, users will be able to access each function (capture video, create/edit video, and copy video) via the distinctive NEO TaskBar, which rests on the desktop once the application is launched. With this unique approach, the first in PC-based DVD authoring software, users are assured that they access the specific module for a particular task, and all the options specific to the task are presented on one easy-to-understand interface, thereby allowing them to complete the task as quickly and easily as possible.

"We work closely with our OEM partners to deliver features that their customers want without compromising ease of use," says Gordon Doran, Vice President of Sales and Marketing for MedioStream. "To that end, we feel that using one interface to be all things to all people will ultimately create more confusion for the end-user, especially as more features and functionalities are introduced. We already offer the fastest PC software to create DVDs, and now with the NEO TaskBar, we're living up to our commitment and setting a new standard for ease of use."

In addition to all the functionalities of neoDVDstandard 3.0, neoDVDstandard 4.0 includes MedioStream's industry standard Video Recording (VR) support for DVD+RW drives, which allows users to create a DVD, add or delete clips and re-burn the video onto the same disc, without having to recreate or burn another disc. Consumers can now utilize MedioStream's VR support to turn their DVD+RW burner into a VCR with editing features.

"It doesn't really benefit the consumers or the OEMs if all users can do is edit the DVD disc on the PC and nowhere else. Because we developed our +RW VR feature according to industry specifications, we can provide greater interoperability with consumer electronics devices," Doran adds. "With neoDVD, they can easily burn their own DVDs on their PC, add video clips from TV or other devices using +RW DVD set-top recorders, and show the finished disc on the PC or TV. Greater interoperability means more cross-sell opportunities for our OEMs."

MedioStream's neoDVDstandard is currently bundled with Ricoh's MP5125A DVD+RW/+R internal drives in Europe and Japan, as well as Sony's latest generation of DVD+RW drive sold worldwide (DRU-120A ATAPI internal model and DRX-120L i.LINK external burners). The VR support feature will join MedioStream's "Direct-to-Disc Recording" and "Smart Buffering" as standard features in neoDVD. neoDVDstandard 4.0 (MSRP $29.99 for ESD and $39.99 for CD) will be commercially available in August.

About neoDVD

Designed specifically for consumers, MedioStream's neoDVD suite of DVD authoring software offers a complete, real-time end-to-end solution for consumers to easily capture, edit, compress, author and burn DVD or VCD video files onto their recordable DVD and CD drives. neoDVD supports live capture from camcorders, as well as input from DV, AVI, Quick Time, MPEG-1 and MPEG-2 video files. In addition, neoDVD offers automatic PAL/NTSC format conversion, and the ability to personalize DVDs or VCDs, including adding audio overlay, chapter titles, customized menu, and transitional effects. With no video processing experience, the average camcorder user can quickly and easily create DVDs or VCDs on their home PC.

neoDVD is compatible with Microsoft Windows 98SE, Me, 2000, and XP. The software requires one analog capture card or OHCI-compliant FireWire connector (for video capture); 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; Windows Media Player 7.1 or above.

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.

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 multi-format 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.