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News CARDIFF LIQUIDOFFICE... | PBS AND VIRAGE CONTI... | FLORIDA'S HILLSBOROU...
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PBS And Virage Continue Relationship

Contract Renewal Will Bring Additional PBS Television Content To PBS.org

SAN MATEO, Calif. - December 11, 2002 - Virage, Inc. [NASDAQ: VRGE], a leading provider of video and rich media communication software, today announced that the Public Broadcasting Service (PBS) has renewed its application services contract with the company. Under the renewed contract, PBS and Virage will continue to deliver video from several popular television programs onto PBS.org, the broadcaster's award-winning website.

"We've been working with Virage since 2000 and they've always demonstrated commitment to making our projects a success," said Cindy Johanson, senior vice president, PBS Interactive Learning. "Our growing broadband audience appreciates the extension of our TV content onto PBS.org, and the ability to easily search by keyword."

The original contract dates back to June 2000, when Virage was selected to help PBS bring The NewsHour with Jim Lehrer program to PBS.org. To date, Virage has processed more than 500 television episodes of The NewsHour. Following this successful launch, PBS and Virage worked together to launch three more series-Julia Child: Lessons with Master Chefs, PBS Mathline, and Scientific American Frontiers. In 2002, PBS and Virage launched three additional programs including American Field Guide, PBS Teacherline, and Washington Week.

PBS is leveraging Virage's VS Publishing™ software solution and Virage Application Services to provide content processing services and hosting. After episodes of each program are aired, the television content is encoded and indexed through the Virage SmartEncode™ process, and delivered to PBS.org. End-users can search for specific topics by categories, keywords and series for a personalized viewing experience.

The most recent Virage-powered programs added to PBS.org include:

American Field Guide

Produced by Oregon Public Broadcasting, American Field Guide (www.pbs.org/americanfieldguide/) provides the public easy access to valuable content after it has been aired. Recasting outdoors programming content from nearly 30 stations across the country in a convenient, on-demand format, American Field Guide offers the public a unique and valuable online experience 24 hours a day, seven days a week. Joining highly produced video segments with useful web components, American Field Guide is a uniquely dynamic source of information on the American outdoors.

PBS Teacherline

PBS TeacherLine (www.pbs.org/teacherline/), funded by a grant from the U.S. Department of Education, provides teachers across the country with online professional development in mathematics and technology integration. In collaboration with leading educational producers, TeacherLine has developed online facilitated modules and self-paced learning opportunities that teachers can access anytime, anywhere.

Washington Week

Washington Week (www.pbs.org/washingtonweek/) is the longest-running public affairs program on PBS. The show first aired locally on WETA on February 23, 1967. A few months later it began broadcasting over Eastern Educational Network, a group of 14 stations located between Washington, D.C. and Maine. In January 1969, it became the first local program to air on the new Public Broadcasting Service (PBS). Washington Week features a group of journalists participating in roundtable discussion of major news events.

For more information on PBS as well as other Virage customers, please go to

www.virage.com/customers/case_studies/.

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 bring," "will continue," 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 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. The Virage logo, SmartEncode, MediaSync, Virage ControlCenter, Virage Solution Server, VS Webcasting, VS Publishing 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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