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Macrovision Announces Milestone for SafeDisc Replication Worldwide

SafeDisc for CD-ROM Copy Protection Licensed to 75 Replicators Worldwide

SUNNYVALE, Calif.--(BUSINESS WIRE)--Nov. 15, 1999--Macrovision Corporation announced today that its SafeDisc(TM) PC CD-ROM copy protection solution has been licensed to over 75 replication facilities worldwide, making SafeDisc the de facto standard for CD-ROM copy protection for consumer software and information publishers in the global market.

Macrovision recently licensed Zomax, Quebecor, Metatec, WEA and Future Media to apply the SafeDisc technology to discs manufactured for Macrovision licensed software publishers. SafeDisc has previously been licensed by most major multinational replicators including Sonopress, MPO, Americ Disc, Nimbus, Cinram, and JVC.

The SafeDisc technology is a software-based solution that does not require any changes to standard PC or CD-ROM hardware. It is comprised of both an authenticating digital signature embedded on the disc, as well as a multi-layered encrypted wrapper that secures the CD-ROM content.

The digital signature, which cannot be copied by CD recorders, is added to each original disc during the mastering/replication process. When a user inserts an original disc in a CD-ROM drive, the authentication software reads the digital signature, allowing the program to be decrypted and run normally.

If an unauthorized copy is loaded, the authentication software will not be able to find the digital signature, and the copy will not run. The anti-copy encryption technology is licensed directly to software and information publishers via "SafeDisc" tool kit, and to mastering and replication facilities via "DCA MIS V6 SafeDisc upgrade" for the laser beam recorder (LBR) that adds the patented digital signature during the manufacturing process.

"We are extremely happy with the market acceptance for SafeDisc in its first year on the market," said Brian Dunn, Senior Vice President of Computer Software Copy Protection at Macrovision. "Our SafeDisc technology has grown quickly since introduction in September, 1998 and has been applied to over 20 million CD-ROMs. SafeDisc has been adopted on a worldwide level by most major replicators as the de facto standard for CD-ROM copy protection for consumer software."

"Providing the best technology and services to our software publishers is critical to Zomax's success," said Anthony Angelini, Executive Vice President for Zomax. "Based on the requests for SafeDisc from our publishers it was clear that this was an important strategic investment for our business."

SafeDisc copy protection technology implementations for disc mastering, verification and test systems have been developed by Doug Carson & Associates, Eclipse Data Technologies, Audio Development, CD Associates and kdg mediatech AG (formerly known as Koch Media).

Piracy of packaged entertainment software last year was estimated by the Interactive Digital Software Association (IDSA) to be over US$3.2 billion worldwide for the software gaming industry alone.

Further, the Business Software Alliance (BSA) and Software & Information Industry Association (SIIA) 1999 Annual Piracy Report estimated the business application software piracy revenue losses at $2.9 billion in the U.S. and $11 billion globally.

SafeDisc, developed by Macrovision's subsidiary C-Dilla UK Ltd., represents Macrovision's first copy protection product for the interactive and business software market. Macrovision is best known for its videocassette and DVD copy protection technology, which has been applied to over 2.5 billion videocassettes over the past decade and over 85 million DVD discs since 1997.

C-Dilla, founded in 1991 and acquired by Macrovision in June 1999, is best known for its rights management software for high value-added information and software publishers. SafeDisc is licensed to most of the leading interactive software companies including Electronic Arts, Microsoft, Eidos, GT Interactive, Hasbro Interactive and Mattel.

About Macrovision

Macrovision Corporation develops and markets content copy protection and right management technologies and products to prevent the illicit duplication, reception or use of video and audio programs and computer software. The Company provides its products and services primarily to the consumer multimedia and business software publishers, home video, pay-per-view, cable, satellite and video security markets.

Macrovision has its headquarters in Sunnyvale, with subsidiaries in London and Tokyo.

All statements contained herein, as well as oral statements that may be made by the Company or by officers, directors or employees of the Company acting on the Company's behalf, that are not statements of historical fact, constitute "forward-looking statements" and are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995.

Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties are outlined in Macrovision's Annual Report on Form 10-KSB for 1998 and its Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 1999, both as filed with the Securities and Exchange Commission. These factors may not constitute all factors that could cause actual results to differ materially from those discussed in any forward-looking statement. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.




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