Cooperatively developed by four of the world's leading audio compression experts (AT&T, Dolby Laboratories, Fraunhofer IIS, and Sony Corporation), AAC is the only next-generation, low bit-rate audio compression format to be specified by the International Organization for Standardization (ISO) as part of the MPEG standard.

Compared to MPEG-1 Layer 3, popularly known as MP3, AAC provides higher quality music in a more secure format, while requiring approximately 30 percent less storage and/or bandwidth.

To date, major record labels, digital music service providers, retailers and hardware manufacturers have not endorsed a single audio compression format, Digital Rights Management (DRM) technology or music player. In an effort to address potential market fragmentation, Preview Systems has created a flexible and interoperable digital goods commerce platform that integrates these technologies from many of the industry's leading companies into a common solution. In addition to the AAC codec, Preview Systems has also licensed technologies from Intel, Lucent, Microsoft, Samsung, Sony and Xerox's ContentGuard to support all types of digital goods commerce.

``Preview Systems' infrastructure platform has deeply penetrated the digital music distribution channel,'' noted Ramzi Haidamus, Dolby Laboratories' technical/business strategist. ``By integrating AAC, Preview Systems enables its record label and retailer customers to sell tightly compressed, legitimate digital music with superior audio quality.''

``Our integration of the AAC codec is a direct response to requests from some of our strategic partners,'' explained Frank Tycksen, vice president and co-founder of Preview Systems. ``In addition to the audio quality and compression capabilities of AAC, another advantage of the codec is its wide adoption by portable device manufacturers, several of which are Preview Systems customers.''

Companies that currently support AAC include iObjects, S3's Rio Group, RioPort, Matsushita, Texas Instruments, Sanyo, Toshiba, Cirrus Logic, ARM and others.

About AAC

AAC is high-quality audio coding technology and the solution of choice for many broadcast and electronic music-distribution applications. It is compatible with most digital rights management, encryption, and watermarking solutions available today. In independent tests, the coding efficiency of AAC proved to be superior to MP3, providing higher-quality audio reproduction at lower bit rates. AAC provides up to 48 channels of audio, sample rates of up to 96 kHz, and can achieve ITU-R broadcast quality at 320 kb/s for a 5.1-channel audio program. Developed and standardized as an ISO/IEC specification by four industry leaders (AT&T, Dolby Laboratories, Fraunhofer IIS, and Sony Corporation), AAC is supported by a growing number of hardware and software manufacturers. For more information about AAC, visit the AAC Web site, www.aac-audio.com, or send email to aacla@dolby.com.

About Dolby Laboratories

Dolby Laboratories (www.dolby.com) is the developer of signal-processing systems used worldwide in applications that include motion picture sound, consumer entertainment products and media, broadcasting, and music recording. Based in San Francisco with European headquarters in England, the privately held company also has offices in New York, Los Angeles, Beijing, Shanghai, and Tokyo.

About Preview Systems

Preview Systems enables the secure electronic commerce of digital goods, such as software and music, by providing an Internet-based infrastructure that connects software publishers and record labels to their channel partners and customers. The company provides an infrastructure for secure digital distribution of content that bridges multiple formats and multiple DRM technologies. Preview Systems' platform also incorporates protection, delivery and management of the rights associated with the usage of digital goods. With headquarters in Sunnyvale, Calif., Preview Systems technology is used by a network of software publishers, record labels, distributors, service providers, resellers and hardware manufacturers. Preview Systems is publicly traded on NASDAQ under the symbol PRVW.

All trademarks are the property of their respective owners.

The statements contained in this release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. These include statements regarding Preview's expectations, beliefs, hopes, intentions or strategies regarding the future and, in particular, growth of the digital music marketplace and deployment of our infrastructure platform by major record labels, service providers, retailers and hardware device manufacturers. These forward-looking statements are subject to a number of risks and uncertainties, including: the continued adoption and deployment of Preview Systems' music solution and of the AAC technology; consumer and retailer acceptance of electronic distribution of music; the growth of Preview's network of record labels, distributors, service providers, retailers and hardware manufacturers; the amount of major label music available for digital download; technical challenges specific to the integration of the AAC technology into the Preview Systems music solution; and the ability of the music solution to achieve desired system integration, flexibility, interoperability and other expected business benefits. Actual results may differ materially due to these and other factors. The matters discussed in this press release also involve risks and uncertainties described from time to time in Preview Systems' filings with the Securities and Exchange Commission. In particular, see the Risk Factors described in our annual report on Form 10-K for the fiscal year ended December 31, 1999, our final Prospectus dated December 7, 1999 for our initial public offering and our news releases. Preview Systems assumes no obligation to update the forward-looking information contained in this news release.

Contact:

     Preview Systems
     Anne Hohenberger, 408/720-3528
     anneh@previewsystems.com
       or
     Thomson Financial Investor Relations (Investors)
     Erik Knettel, 212/701-1963
     erik.knettel@tfn.com
       or
     mPRm Public Relations (Media)
     Paul Breton / Nicole Goesseringer, 323/933-3399
     pbreton@mprm.com / ngoesseringer@mprm.com