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Cinebase and Virage Announce Broad Strategic Partnership

Industry analysts support agreement Los Angeles and San Mateo, California -- February 3, 1998 -- Cinebase Software, Inc. and Virage, Inc. today announced a broad and innovative partnership which marks a major step in the media management software market's evolution towards pre-packaged software solutions. Through this agreement, Cinebase will license and resell the Virage Video Cataloger, integrating it with the Cinebase Digital Media Management System (DMMS).

The companies came together because Cinebase, the leading developer of media management solutions for the post-production and cable markets, and Virage, the leading developer of media management solutions for the broadcast industry, had requests from several customers to make their products work together. In response, Cinebase and Virage partnered to deliver a new, pre-packaged software solution that offers customers more options when building a media management system.

"Cinebase and Virage are the two leaders right now in the emerging digital media management space," said Neal Weinstock, President of Weinstock Media Analysis, a leading production industry analyst. "An alliance between them suggests that each will concentrate on the...components they're best at, helping to move the industry beyond comprehensive, custom solutions...into the realm of easy-to-use, packaged software." "With this agreement, Cinebase and Virage clearly demonstrate their understanding of the...market's needs and state of development," said John McCormick, an industry analyst with Frost & Sullivan. "By cooperating instead of competing, these two companies can offer products far stronger than those developed individually, which should help accelerate the penetration and revenue growth rates for the companies and the entire industry." As part of the agreement, Cinebase will also license the Virage Visual Information Retrieval (VIR) Engine. The VIR Engine will be a primary design point for Cinebase's MediaSearch Framework, a scalable plug-in framework under development by Cinebase for the National Image Mapping Agency (NIMA). The framework will permit Cinebase users to select and apply multiple image search technologies on single or multiple media repositories.

"Our primary customers are around-the-clock media production companies," said Alan Brown, Cinebase Chairman and Founder. "They demand advanced products that reduce their production cycles and per-hour production costs. The Virage Video Cataloger and VIR Engine are mature and proven media applications that when combined with the Cinebase Digital Media Management System and MediaSearch Framework will be of tremendous value to our customers." "This agreement marks a turning point in the emerging billion-dollar digital media management industry that has been mired down with proprietary applications," said Paul Lego, Chief Executive Officer of Virage. "When we evaluated the media management needs of our customers it became apparent that combining Cinebase's domain knowledge of the production markets with Virage's expertise in broadcast created a powerful solution." The Virage Video Cataloger automates much of the labor-intensive video logging process. It uses state-of-the-art technology to intelligently watch, listen to and read a video stream, automatically extracting information such as keyframes, an audio profile, closed captioned text and time codes. All of this metadata combines to create a rich storyboard index that is stored in the Cinebase Digital Media Management System.

The Cinebase Digital Media Management System is capable of handling extremely large volumes of digital imagery, video, audio and graphics from hundreds of gigabytes to hundreds of terabytes. Cinebase's DMMS is used by enterprise customers every day to manage the explosion of digital imagery developed by the post-production and cable markets or "re-purposed" for the Web, stock footage or other uses. With proven digital media management products and consulting expertise, Cinebase delivers "all-digital" solutions for the media production industry.

About Virage, Inc.

Virage, Inc. (www.virage.com) provides breakthrough media asset management solutions for broadcast corporations, advertising agencies and consumer product and service companies. Virage's products help these organizations derive significant operational and competitive advantages through managing and providing timely, distributed access to their media content. As part of providing best-of-breed solutions, Virage has partnerships with some of the most well-known and respected technology companies in the world including: Cinebase, Informix, Microsoft, Object Design, Objectivity, Oracle, RealNetworks, Silicon Graphics, Sun Microsystems, Sybase and Viisage. Headquartered in San Mateo, California, Virage was founded in 1993 to provide organizations with advanced methods for accessing and leveraging diverse media assets.

About Cinebase Software, Inc.

Cinebase Software, Inc. is the leading provider of digital media management software and developer of the Cinebase Digital Media Management System (DMMS). Cinebase is the recognized leader in the field of digital media management in the professional film, video, post-production and cable markets. Cinebase enables an enterprise to manage extremely large volumes of digital media for archival, distribution and production management purposes. Cinebase is a multiplatform support client-server application providing enterprise-wide extensibility on SGI, NT, and Macintosh platforms. Company headquarters is located at 11835 W. Olympic Blvd., Suite 1000, Los Angeles, CA 90064. Phone number is (310) 479-3700; FAX number is (310) 479-8480. Web site address is http://www.cinebase.com.

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