CAMPBELL, CA and TORONTO (Dec. 22, 2000) -- MGI Software Corporation today announced a new licensing agreement with Sony where MGI will supply PhotoSuite and VideoWave software to be included with a new line of Sony DV camcorders. In addition, MGI has renewed existing licensing contracts with Sony's camera division, which makes the Mavica and Cyber-shot digital still cameras.

"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 1999.

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.

About MGI   
MGI is a provider of visual media software products and infrastructure that maximize the use of digital visual content by businesses and individuals. For more information, please visit mgisoft.com.

SOURCE MGI Software Corp.