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CNN Selects Virage for Digital Archive Project

Virage Video Application Platform Provides Integrated Framework For Digital News Production, Archive and Global Distribution

October 18, 2000 - The CNN News Group and Virage, Inc. [NASDAQ: VRGE] today announced a strategic alliance to extend Virage technology into the CNN Digital Archives. CNN will license the Virage technology platform as an advance toward a completely digital production and distribution environment. The Virage technology will provide for the automatic creation of metadata that allows for video content management and production.

The CNN digital archive project, which encompasses more than 100,000 hours of video footage, will be the first implementation under this agreement. CNN has worked with Virage for three years and has used Virage throughout its news organization. CNN uses the Virage Video Application Platform to index all of its incoming feeds and supply storyboards and metadata to the journalists' desktops for immediate access to video information.

"We are pleased to be extending Virage's enabling technology for digital production and distribution," said Gordon Castle, senior vice president, strategic digital systems for CNN. "We have enjoyed a long-standing relationship with Virage and look forward to expanding our use of their technology."

"We welcome the opportunity to work with CNN in its goal to have an unparalleled global digital news operation," said Paul Lego, chairman and CEO of Virage. "We are proud to be chosen by a company that values the quality and flexibility of our software. We look forward to developing a stronger relationship with CNN over the course of this project."

About CNN

CNN is one of the world's most respected and trusted sources of news and information. Its reach extends to nine cable television networks; three private place-based networks; two radio networks; 14 Web sites, including CNN.com, the first major news and information Web site; CNN Mobile, which provides news and information to mobile devices; and CNN Newsource, the world's most extensively syndicated news service.

About Virage

Headquartered in San Mateo, CA, Virage is a leading provider of software products and application services that enable owners of video content to publish, manage and distribute their video assets over the Internet or corporate intranets. Virage Application Services provide content owners with the complete infrastructure for seamlessly integrating Internet-compliant video into their Web sites. Virage VideoLogger™ and Video Application Server™ software set the standard for real-time indexing, publishing and distribution of video across the Internet and corporate intranets. From ABC News to Yahoo!, Virage has over 150 customers worldwide in a range of markets including media and entertainment, large enterprise, education, government and Internet destinations. Contact Virage at www.virage.com or (650) 573-3210.

This press release contains "forward looking" statements about the products and services of Virage and CNN, as that term is used in Section 21E of the Securities Exchange Act of 1934. Phrases such as "will integrate" denote forward-looking statements. These types of statements address matters that are subject to risks and uncertainties which could cause actual results to differ materially. In addition, our forward-looking statements should be considered in the context of other risk factors discussed in our filings with the Securities and Exchange Commission, including our Registration Statement on Form S-1, as amended, available for viewing on our web site. (To access this, please click on "Investor Relations," "SEC Filings").

Virage, VideoLogger and the Virage logo are registered trademarks and, Internet Video Guide, Virage Application Server and SmartEncode are trademarks of Virage, Inc. Other company product and service names may be trademarks or service marks of others, and are hereby acknowledged.

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