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Delivers Enhanced Sound Quality, Increased Audio Playback Compatibility, Higher Compression Rate/Smaller Audio Files

InterVideo's new audio encoder leverages the Dolby technology consumers have been enjoying in movie theaters and commercial videos for nearly a decade. Dolby Digital also features the same technology specified by the DVD formats for stereo or multichannel surround audio on both PAL and NTSC DVD discs. As a result, Dolby Digital-encoded files created with WinDVD Creator 2 and WinDVR 3 will be compatible with the broad range of consumer electronics players and recorders that support the DVD format.

Using audio captured from analog or digital sources, the InterVideo DDCE creates Dolby Digital audio files without sacrificing sound quality. The size of the encoded audio files are typically reduced by a ratio of 8:1, leaving more space on the disc for video.

About WinDVD Creator Platinum 2

InterVideo's WinDVD Creator Platinum 2 products help users turn raw video footage into more professional-looking DVDs by guiding them through four simple movie-making steps: capturing video; editing it; adding titles, transitions, effects, music, and DVD menus, and finally, burning the finished product as a DVD (or VCD, SVCD, mini-DVD, MPEG-4, DivX(TM), WMP) movie.

WinDVD Creator Platinum 2 is enhanced with time-saving features such as direct-to-disc recording and OnDiscEditing. InterVideo's patent-pending UniPass(TM) technology, which integrates DVD creation and editing into a single step, is also included. With UniPass, multiple rendering passes are not needed and simple editing fixes do not take hours to re-render.

In addition to the new DDCE encoder, WinDVD Creator Platinum 2 offers many advanced audio technologies designed to help consumers create videos that sound as good as they look. Built-in technology reduces background noise and simplifies the audio editing process. Special effects such as fade-in, fade-out, audio mix and other effects can be used to highlight special moments in the video with sound. Up to two extra audio tracks can be added for creating complex audio effects.

For users who want to capture video from both analog and digital sources, InterVideo also offers WinDVD Creator Platinum 2 AVDV, a combination hardware/software solution that includes an ADVE-9011H Analog/Digital Video Capture Combo Board.

About WinDVR 3

WinDVR 3 is a cost-effective software solution that includes the tools consumers need to select TV programs online and record them to a PC hard drive for future viewing. In addition to time-shifting options that allow users to skip commercials, pause and replay live TV, WinDVR 3 offers File Conversion features and DV camcorder playback functions such as fast forward, rewind and advanced seek capabilities.

By utilizing WinDVR 3's CD and DVD burning function and a DVD/CD burner, files can be output to CD-R, CD-RW, DVD-R, DVD-RW, DVD+RW and DVD-RAM discs that can be archived and shared.

Pricing, Availability

WinDVD Creator Platinum 2 is compatible with Windows® 98 SE, Me, 2000 and XP, and is available now at www.intervideo.com and in retail stores. The suggested list prices are: $99.95 for WinDVD Creator Platinum 2 and $129.95 for WinDVD Creator Platinum 2 AVDV.

WinDVR 3 is compatible with Microsoft Windows 98 SE, Me, 2000, and XP, and supports Microsoft's DirectShow technology as well as WDM-compliant TV Tuner devices. WinDVR 3 is now available on InterVideo's web site, www.intervideo.com for $79.95 and will soon be in retail stores.

About InterVideo, Inc.

InterVideo is a leading provider of DVD software. InterVideo has developed a technology platform from which it has created a broad suite of integrated multimedia software products that allow users to capture, edit, author, burn, distribute, and play digital video. InterVideo's software is bundled with products sold by the majority of the top ten PC OEMs ranked in terms of sales by IDC, as derived from the IDC Worldwide Quarterly PC Tracker, March 2003. The company is headquartered in Fremont, CA with regional offices in Europe, Taiwan, China and Japan. For more information, contact InterVideo at 510/651-0888 or visit the company's Web site at www.intervideo.com.

Safe Harbor Statement

Except for the historical statements contained herein, the foregoing release contains forward-looking statements, including statements regarding InterVideo's WinDVD Creator Platinum 2 and WinDVR 3 products. These forward-looking statements are subject to risks and uncertainties, and actual results could differ materially due to several factors, including but not limited to the ability to forecast customer behavior and recognize or respond to emerging trends, changing preferences or competitive factors, the market acceptance of our new products and product enhancements, the resolution of any notices of claims regarding alleged infringement of third parties' intellectual property rights, the ability to maintain or expand our relationship with PC OEMS and other risks and uncertainties. Please consult the various reports and documents filed by InterVideo with the U.S. Securities and Exchange Commission, including but not limited to InterVideo's Form S-1/A for other risk factors that could cause actual results to differ. All forward-looking statements are made as of the date hereof and InterVideo disclaims any responsibility to update or revise any forward-looking statement provided in this news release.

InterVideo and WinDVD are registered trademarks and WinDVD Creator and WinDVR are trademarks or service marks of InterVideo, Inc. All other trademarks are the property of their respective holders.

Editors Note: For more information, photos/illustrations or a review copy of WinDVD Creator or WinDVR, contact andy@markencom.com.

Contact:

     InterVideo, Inc.
     Andy Marken, 408-986-0100
     andy@markencom.com