MGI & Sony in Agreement to Expand Digital Imaging and Video Markets Worldwide

CAMPBELL, CA and TORONTO, ONT – December 22, 2000 – MGI Software Corporation
(TSE:MGI), a leading provider of visual media software products and
infrastructure, today announced a new licensing agreement with Sony
Corporation, Japan, one of the world’s leading suppliers of digital cameras.
Under the agreement, MGI will supply versions of its popular PhotoSuite and
VideoWave software in multiple languages that will be included with the new
line of digital video (DV) Sony Handycam Camcorders shipping worldwide.
In addition, MGI has renewed existing licensing contracts with Sony’s camera
division, which makes the popular Mavica and Cyber-shot digital still

“We have always maintained that our commitment, partnerships and investments
in Japan would be strategically significant,” said Anthony DeCristofaro, MGI
president and CEO. “This agreement verifies that commitment, as it expands
on the existing relationships we have established with Sony over the years.”
The agreements with Sony were completed by Mitsui Co. of Japan, MGI’s
strategic licensing partner in Japan.

According to InfoTrends Research Group, Boston, MA, worldwide shipments of
digital cameras are expected to grow from 10 million units this year to more
than 200 million cameras by 2009. Sony leads world market shipments with
year-to-date share of 25-30%, nearly twice its closest rival.

The Consumer Electronics Association (CEA) indicates recent developments
such as improved resolution and ease of posting images to Web sites have
drawn even more users to digital cameras. As a result digital cameras are
topping gift wish lists this holiday selling season. In its “7th Annual
Holiday Purchase Patterns” survey, CEA reveals digital cameras have moved up
the list for 2000, placing second on the video wish list, up from five in

Retailers and online stores are already experiencing sales increases with
digital cameras as the CEA survey purports. RadioShack posted its largest
single day sales in their 75-year history during the U.S. Thanksgiving
holiday where digital cameras played a part in the high sales. While top
product searches on America Online suggest that digital cameras are as
popular as game consoles and scooters.

Digital video is also on the rise. For instance, video capture is featured
on many top-selling digital still cameras while manufacturers such as Sony
have discontinued production of analog camcorders in favor of digital
models. Eighty percent of camcorders sold in Japan and 10% of those sold in
North America last year were digital. MGI’s award-winning PhotoSuite and
VideoWave software provide all the features and power home and business
users need to easily capture, edit, and share digital photos and videos with
their digital cameras and camcorders.

The Videomaker Editors are dedicated to bringing you the information you need to produce and share better video.

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