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Virage Signs Reseller Agreement with Sony Electronics

SAN MATEO, Calif. - March 24, 2003 - Virage, Inc. [NASDAQ: VRGE], a leading provider of video and rich media communication software, today announced that it has signed a reseller agreement with Sony Electronics, in which Sony will resell Virage products and services for the corporate, education, and media and entertainment markets. In addition, Virage announced Sony will continue to participate in the Virage Developer Program in order to integrate the latest Virage technology into its professional services solutions.

Sony's Professional Services, a division of the Sony Business Solutions and Systems Company, develops, integrates and offers post-installation support for corporate, education and entertainment industry customers seeking comprehensive systems for creating, managing, displaying, broadcasting and storing video and data.

"Our customers depend on us to provide the best available solutions for handling their rich media communications, production and web publishing needs," said Gene Savoie, vice president of Professional Services Sales and Marketing for Sony's Business Solutions and Systems Company. "We're pleased to offer Virage software as part of our portfolio of solutions built for the emerging broadband era that are designed to help customers work more efficiently and grow their businesses."

"Virage and Sony have been working together to build integrated professional solutions since September of 2000," said Dave Girouard, senior vice president of Marketing and Business Development at Virage. "When it comes to delivering comprehensive solutions for managing rich media assets throughout an enterprise, the industry turns to Sony's Professional Services. We're happy that Sony has chosen to incorporate Virage software into its solutions."

Virage Solutions

Virage offers three complete solutions for video and rich media communications. Built upon the award-winning SmartEncode™ suite of products and the Virage Solution Server™, the three solutions include:

VS Webcasting™ - a comprehensive enterprise solution for producing interactive, live webcast events as well as searchable on-demand webcast presentations.

VS Production™ - automates and streamlines the professional video production workflow from acquisition to distribution.

VS Publishing™ - allows media publishers and others with branded content to turn their video and other rich-media content into compelling Internet and intranet programming.

In January, Virage won the Frost & Sullivan Digital Media Technology of the Year award. The company chosen to receive the Digital Media Technology of the Year award received the number one industry ranking for that category.

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 continue", "will resell" 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 of Virage, Inc. The Virage logo, SmartEncode, VS Webcasting, VS Publishing, VS Production, MediaSync, Virage ControlCenter and Virage Solution Server 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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