Fremont, CA -- 07/05/2006 --InterVideo®, Inc. (NASDAQ: IVII) an industry leader in next-generation DVD and multimedia software, announced today that its Taiwan branch, InterVideo Digital Tech, and Ulead Systems (TSE:2487) will be officially merged.

InterVideo Taiwan acquired the remaining shares of Ulead Systems Inc. in order to consolidate resources efficiently, reduce operational costs, and enhance operational efficiency. InterVideo currently owns 67 percent of Ulead and will pay NT$30 per share to buy back the remaining 33 percent of shares from Ulead shareholders.

About Ulead Systems
Ulead Systems, Inc. (TSE:2487), a subsidiary of InterVideo, Inc. (NASDAQ: IVII) is a 17-year industry leader in video, image and DVD software. As more people use digital technologies at home, school and the workplace, Ulead software empowers users of all levels with the tools to easily and affordably personalize, manage and share digital content. Ulead is a member of the DVD Forum, participates in DVD Forum Working Groups and is a general member of the HD DVD promotion group. Ulead is also a Contributor member of the Blu-ray Disc Association and serves on the BDA TEG. For more information on the company, its products and services, please visit Ulead's Web site at www.ulead.com

About InterVideo Ulead
InterVideo is a leading provider of integrated digital and high-definition multimedia and audio/video content solutions in the PC, CE and wireless industries. The company’s broad suite of integrated multimedia software products are designed to enhance the consumer’s entertainment experience, whether the content is delivered to a home system, HDTV set, wireless system, mobile or personal multimedia device. InterVideo’s unique iMobi™ multimedia codec technologies are widely used by Smartphones, GPS units and portable entertainment device OEMs and ODMs to enhance music and video enjoyment.. anyplace, anytime. The firm’s worldwide headquarters is at 46430 Fremont Blvd, Fremont, CA, 510-651-0888, InterVideo also has major offices in Taiwan, Japan, Mainland China and around the globe. For more information, visit www.intervideo.com.

Safe Harbor Statement
Except for the historical statements contained herein, the foregoing release contains forward-looking statements, including statements regarding InterVideo & Ulead. These forward-looking statements are subject to risks and uncertainties, and actual results could differ materially due to several factors, including but not limited to the ability to forecast customer behavior and recognize or respond to emerging trends, changing preferences or competitive factors, the market acceptance of our new products and product enhancements, the resolution of any notices of claims regarding alleged infringement of third parties' intellectual property rights, the ability to maintain or expand our relationship with PC OEMS and other risks and uncertainties. Please consult the various reports and documents filed by InterVideo with the U.S. Securities and Exchange Commission, including but not limited to InterVideo's Form 10-Q for other risk factors that could cause actual results to differ. All forward-looking statements are made as of the date hereof and InterVideo disclaims any responsibility to update or revise any forward-looking statement provided in this news release.

InterVideo is a registered trademark of InterVideo, Inc. Ulead is a registered trademark of Ulead Systems. All other trademarks are the property of their respective holders.