MGI Ships First Software DVD Player with Dolby Headphone Technology

CAMPBELL,CA and TORONTO, ONT - May 15, 2000 - MGI Software (TSE:MGI), a
technical and market leader in digital video, today announced MGI SoftDVD
MAX with Dolby Headphone. The product is the world’s first DVD software for
PCs to integrate Dolby Headphone technology, which delivers home
theater-like surround sound through any regular pair of headphones. MGI has
collaborated with Dolby Laboratories and Lake Technology, the developers of
the technology, to fully incorporate the capability into a new version of
SoftDVD MAX, which is now available for purchase from the MGI Web site at
http://www.dvdmax.com.

“Dolby Headphone is a totally new experience in headphone listening,” said
Roger Dressler, Director of Technology Strategy for Dolby. “Using
sophisticated room modeling techniques, the Dolby Headphone process
transforms conventional audio into a believable 3-dimensional reality that
you can enjoy with any pair of headphones. The result is the natural,
spacious sound you would experience from a stereo system or a 5.1-channel
home theater, using regular headphones.”

“Dolby Headphone will be incorporated into a variety of consumer electronic
devices, but MGI is pleased to be the first to deliver this exciting
technology for the personal computer,” said Ihor Petelycky, General Manger,
Digital Video, at MGI. “Dolby Headphone is one of those ‘must have’
features for any desktop or laptop computer user who wants to experience the
immersive Dolby Digital sound, which is part of almost every DVD movie
available.”