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Digital Ranch Deploys Virage to Streamline Production of History Channel Television Series

SAN MATEO, Calif. - June 11, 2002 - Virage, Inc. [NASDAQ: VRGE] announced today that Digital Ranch has successfully deployed Virage VS Production™ software in its state-of-the-art production facility in Los Angeles. VS Production is an integrated software solution that automates the professional video production process from acquisition to distribution. Virage is a leading provider of video and rich media communication software.

"Virage has proven to be an ideal solution, enabling us to improve our production workflow significantly," said Rob Kirk, president of Digital Ranch. "With Virage, our writers, producers, and directors can quickly preview and share footage as well as collaborate on rough cut edits right from their desktops. By streamlining the creative process and eliminating tedious time-consuming tasks, we are producing better television at a lower cost to the networks."

"Basic Training" is a 26-part television series that will air on the History Channel beginning in August 2002. The series follows six US Army recruits from the moment they leave home through ten weeks of basic training. Digital Ranch shot more than 670 hours of videotape by following the recruits through every part of their training experience.

In order to deal with the sheer volume of source footage in a timely fashion, Digital Ranch turned to Virage. The production company began by encoding and indexing the raw content through the Virage SmartEncode™ process. At this time, all significant names, events, and dialogue were logged. Information captured included key events, names of the trainees and drill sergeants appearing within each segment, and even some verbatim dialogue. At the same time, a low-resolution video proxy was created to support desktop preview of available shots.

With the Virage system, the material is immediately available to all writers, producers, and directors. The team is able to quickly search for and review any of the various elements in the raw footage. If desired, more information can be added to the index for a particular shot, right from a web browser. Next, the Virage software allows the "Basic Training" production team to quickly assemble and share low-resolution rough cuts of each episode, enabling development of the script and collaboration on the shows prior to entering the edit bay. The rough cut of each show can be saved, shared, and even e-mailed around the production facility for viewing by all involved in the project. When the creative team is satisfied, the rough cut can be delivered to an assistant editor as an edit decision list, eliminating the need to create a digitizing list by hand and further speeding up the production process. At this point, the source tapes can be digitized and edited into the final show.

Digital Ranch is also planning to SmartEncode its entire video library, more than 4500 hours of original footage. Because VS Production is browser-based, anyone within the Digital Ranch production facility will be able to access and preview content from the library. More importantly, team members who are working remotely--whether in another facility, in the field, or at home--can also access the same library of content.

About Digital Ranch

Digital Ranch is the Emmy Award-winning production company responsible for the rare archival footage for the documentary on the Tom Hanks - Steven Spielberg HBO series, Band of Brothers. Based in Los Angeles, Digital Ranch is run by Rob Kirk and Rob Lihani, two veteran producers who have created hundreds of hours of television, as well as interactive CD-ROMs and web content including the 24 national TV commercials and 70+ "webisodes" for the U.S. Army's ad campaign, An Army of One. Since 1991, Digital Ranch Productions has been recording and archiving the remarkable and very personal stories of living U.S. wartime veterans from World War I through modern conflicts for The HONOR Project: Heroes of Our Nation On Record, a joint project with the Library of Congress. The Ranch is currently co-producing PBS' The Living Century with Reverie Productions and Barbara Streisand's Barwood Films and has two new series, Mail Call and Basic Training, premiering on The History Channel Summer '02.

About Virage

Established in 1995, Virage is a leading provider of video and rich media communication software. Virage builds integrated rich-media business solutions for corporations, media & entertainment companies, universities and government agencies worldwide. Headquartered in San Mateo, California, Virage (www.virage.com) has offices throughout the United States and Europe.

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 be able", "will air" 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 but not limited to our annual report on Form 10-K and 10-Q filings, 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.

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Virage and VideoLogger are registered trademarks. The Virage logo, SmartEncode and VS Production 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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