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Virage Announces Integration With Cisco Content Delivery Network (CDN) Solution

Integration Enables More Efficient Video Content Usage and

Management within Enterprises

STREAMING MEDIA WEST CONFERENCE, SAN JOSE, Calif. - December 12, 2000 - Virage, Inc. [NASDAQ: VRGE], a leading provider of software products and application services that enable video for the Internet, announced integration with Cisco System's Content Delivery Network (CDN) system. By combining the two solutions, enterprises will have a cost-effective, end-to-end solution for indexing, dynamically publishing, searching and streaming TV-quality video throughout the enterprise using existing data networks.

The Virage Video Application Platform lets an organization easily set up and maintain a website that provides convenient, searchable access to corporate video libraries through standard web browsers. The Cisco CDN automatically distributes content to Content Engines located at remote sites, and intelligently routes user requests to the best Content Engine when it is requested. When a user clicks on a URL to request content, the Cisco CDN transparently streams the content from a local Content Engine to the user's desktop. Since content is delivered locally, rather than over the Wide Area Network (WAN), the end user can access the media at much higher data rates - using all standard web browsers and media players without clogging mission-critical networks.

"Our customers come to us for an easy-to-use and extensible platform for publishing, managing and distributing video on either the Internet or corporate intranets," said Paul Lego, chairman and CEO of Virage. "The ability of our video search products to integrate with a Cisco CDN provides customers with the tools they need to take full advantage of TV-quality on the Web, turning video into a valuable enterprise-wide information resource."

"By using Cisco CDNs with Virage's video tools, enterprises can have total control over all their rich media assets in order to make dynamically published and personalized streaming video a reality," added Jim Ricotta, senior director of marketing, Cisco Systems. "CDNs enable enterprises to add all kinds of rich content to their intranet and extranet websites, and to fully take advantage of this content to enrich and improve applications like e-learning, e-communications and e-commerce. Virage makes it possible for companies to quickly and easily catalog and manage this content, and to enhance these applications."

About Virage, Inc.

Headquartered in San Mateo, CA, Virage is the leading provider of solutions that enable video for strategic online applications. The Virage Video Application Platform transforms video into an effective online medium that is easy to publish, manage and distribute on the Internet or corporate intranets. The Virage platform provides content owners with the complete infrastructure for seamlessly integrating streaming video into business, entertainment and information applications. From ABC to Yahoo! over 180 customers across a broad range of markets have turned to Virage to help them improve production efficiencies and create new revenue opportunities with video. Contact Virage at http://www.virage.com/ or (650) 573-3210.

This press release contains "forward looking" statements about the products and services of Virage and Cisco Systems as that term is used in Section 21E of the Securities Exchange Act of 1934. Forward looking statements are denoted by such words as "will have","intends" and similar terms and phrases. 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 online at www.sec.gov. All forward looking statements are based on information available to the company on the date hereof, and the company assumes no obligation to update such statements.

Virage, and VideoLogger are registered trademarks and 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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