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Virage Announces Broad Cross-Country Adoption of Fifth Generation SmartEncode Suite

Market-Leading Solution Chosen By More Than 300 Customers and 60 Independent Software Developers Worldwide

WASHINGTON, D.C. - November 28, 2001 - At the Government Video Technology Expo today, Virage Inc. [NASDAQ: VRGE] reported record developer and customer support for its fifth-generation SmartEncode™ suite, an integrated software solution for automated capture, encoding and indexing. Virage is a leading provider of enterprise-scale video content management and publishing solutions.

"This latest SmartEncode release extends our market leadership with what is already the most widely-adopted solution for transforming video," said Dave Girouard, senior vice president of products and services for Virage. "Our SmartEncode products are battle-tested in the most intense broadcast and government production environments and have proven themselves to be the most mature, robust, reliable and scalable solution for indexing and encoding video."

In a separate announcement, Virage also announced the launch of the Video Application Server™ 3.0, the latest release of its server solution for publishing, managing and distributing video on the Internet or corporate intranets.

Features Required for Mission-Critical Workflows

The Virage SmartEncode suite offers a unique array of features and capabilities necessary for reliable and efficient operation in the most demanding 24/7 production environments. These features include:

100-Percent Real-Time Processing - All capture, indexing and encoding operations occur in real-time, allowing instant access to the material and real-time processing of inbound feeds

Advanced Memory Disk Caching - Allows non-stop video capture 24 hours a day without missing even a second of video

Automated Event Detection - Can be pre-configured to detect and tag any word, phrase, or name that occurs across the media analysis tracks including speech recognition, face recognition, speaker identification, optical character recognition and closed captioning

Windows Service Configuration - Provides tight integration with the underlying operating system, delivering reliability, scalability and recovery in "lights out" scenarios

Centralized Command and Control - Via ControlCenter™, offers centralized scheduling, monitoring and management of tens or even hundreds of capture stations

Additional new features in the latest release of the SmartEncode suite include an enhanced and expanded encoding architecture, improved ease-of-use and simple, intuitive setup and configuration capabilities.

As part of ongoing defense-related government initiatives, Virage recently released a version of its VideoLogger product incorporating Watchword™, a state-of-the-art speech processing technology from BBN Technologies, a wholly owned subsidiary of Verizon Communications [NYSE: VZ]. This latest technology incorporates intelligent language understanding so that it can locate audio files based on their relevance to any topic of interest. The product integrates an array of features: speaker-independent, continuous speech recognition, speaker segmentation, speaker clustering, speaker identification, name spotting, topic classification, story segmentation, and information or story retrieval technologies.

"Our team at Telecinco is deploying one of the world's most advanced news production and archive systems," said Jose Luis Romero, technical director of Telecinco, Spain's largest broadcaster. "The dependability of each component in the strategy is critical. We performed intensive benchmark tests with multiple competing technology vendors. After evaluating their products, workflow integration, track record and business strategies, Virage came out the clear winner."

The Choice For Systems Integrators

The Virage SmartEncode suite offers an open architecture that allows for rapid and straightforward integration into a variety of production workflows. The fifth generation VideoLogger® Software Developer's Kit (SDK) provides a mature set of interfaces that have been tested by dozens of systems integrators and developers worldwide. In addition to the remote control, data export, digital media ingest, and encoding plug-in interfaces, the latest release also offers a media analysis application programming interface (API). This new API allows integrators and developers to add their own advanced video indexing plug-ins to the SmartEncode product suite. Virage has over 60 certified integrators and developers worldwide.

"Virage software allows us to design and implement even larger video cataloging systems while gaining more control and process automation capabilities," said Joe Gordon, CEO of Leading Edge Design Systems. "That's a great benefit to our customers to allow them to catalog more content without having to increase operational overhead."

International Support for Global Operations

Virage's latest SmartEncode release is 100-percent internationalized, with full support for both single and double byte languages. The products are fully localized in Chinese, Japanese and German. Furthermore, Virage offers speech recognition capabilities in eight languages including US English, UK English, Brazilian Portuguese, Castilian Spanish, Italian, German, Japanese and Mandarin Chinese.

About Virage, Inc.

Headquartered in San Mateo, California, Virage is the leading provider of enterprise-scale video content management and publishing solutions. 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, more than 300 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.

Forward Looking Statements

This press release contains "forward looking" statements about the products and services of Virage, 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 provide", "intends to" 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 http://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 the Virage logo, Video 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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