Taipei, Taiwan -- (ReleaseWire) -- 09/25/2006 --Ulead® Systems, Inc. (TSE:2487), a subsidiary of InterVideo® Inc. (NASDAQ: IVII), today announced the release of Ulead PhotoImpact® 12, Ulead's flagship image-editing software. The latest version adds innovative features that allow beginners to immediately enjoy success in editing their digital photos and sharing images in creative projects.

"PhotoImpact does so many things in such an uncomplicated way, once users get started, they never want to go back," said Steve Ro, Ulead chairman and president of InterVideo. "What we’ve done with this new version is open the door wider to enter the exciting world of digital imaging. We think users will find ExpressFix mode and the new photo projects invaluable additions to this award-winning product."

Making Everyday Photo Tasks Easier
ExpressFix mode and the SmartGuide task-oriented help system are two high-visibility enhancements designed to help introduce users to digital photography.

ExpressFix mode is a simplified interface providing commonly-used photo features as guided and fully automatic tools. Featuring a large preview screen with before and after views, users can adjust color, exposure and focus using intelligent one-click presets. Noise reduction and PhotoImpact’s unique SmartCurves tone adjustment are available as fully-automated one-step processes. For photo portraits, users can remove red-eye effects and enhance the complexion of subjects with a Beautify Skin option. ExpressFix mode also provides direct links to PhotoImpact 12’s enhanced White Balance correction feature as well as options to rotate, print, and e-mail photos.

"New ExpressFix mode isn’t just for first-time users. It’s also great for anyone for making everyday photo edits quickly and easily," said Mike Addicott, founder of Digital Diversity in Australia. "The SmartGuide is useful for users of all levels, providing step-by-step directions on-screen for various digital imaging, Web page, and video and DVD menu creation tasks."

Task-oriented Help System
PhotoImpact 12 now adds a SmartGuide "How-to" help panel to assist users in completing a range of photo, Web and video and DVD-oriented tasks. In addition to step-by-step instructions, links in the SmartGuide, help text automatically selects the correct tools to perform the action described.

Powerful, High-end Image Editing
PhotoImpact 12 features significant enhancements to meet the needs of high-end users. RAW file format has been extended to cover more camera models. Editing at high color depth now includes support for selection tools and objects. 16-bit color depth objects can now be saved in PhotoImpact’s native UFO file format.

A new White Balance correction tool employing advanced perceptual technology makes photos look more natural, even in mixed lighting situations. To speed workflow, the White Balance tool automatically analyzes photo colors and suggests appropriate correction settings which users can accept or refine as desired.

An enhanced Reduce Noise feature, based on new anisotropic diffusion algorithms, is more powerful and much faster. Noise reduction is provided as an automatic feature in ExpressFix mode and as a stand-alone function with adjustable settings for advanced users.

Creative Photo Projects
PhotoImpact’s comprehensive set of montage, painting, graphics, text and tools, along with an extensive collection of filters and effects, have long made it a favorite among creative enthusiasts.

New in version 12 is a three-step Photo Project wizard which provides customizable templates for adding photos to greeting cards and CD or DVD labels. The new Share menu also includes options for sharing photos in calendars, Web albums, Web slideshows and on mobile devices.

Web, DVD and Video Graphics
The PhotoImpact Component Designer now includes video title graphics and DVD navigation buttons in addition to Web page graphics. Also new in PhotoImpact 12 are templates for Web blogs and DVD menus compatible with Ulead’s latest video editing and DVD authoring packages.

Unmatched Value and Versatility
Packing 5 complete applications and ready-to-use content, PhotoImpact 12 offers users the most value and versatility of any image editor in its class. In addition to the main editor, the package includes Ulead Photo Explorer 8.6 for managing and browsing photos, video and other digital media; Ulead PhotoImpact Album 12, a database-driven photo management tool; Ulead COOL 360 for composing panoramic images; and Ulead GIF Animator 5.05, a widely acclaimed GIF animation tool. In addition creative tools, PhotoImpact 12 provides a rich library of over 1,300 royalty-free images, 2,200 Web elements, 1,000 objects and 3,250 customizable effects to serve as a starting point for creative projects.

Pricing and Availability
Box and electronic download versions and upgrades of PhotoImpact 12 will be available in October starting at $49.99 US.

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, Inc.
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 products. 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.

©2006 Ulead Systems, Inc. Ulead and the Ulead Systems logo are registered trademarks of Ulead Systems, Inc. Ulead PhotoImpact is a trademark of Ulead Systems, Inc. InterVideo is a trademark of InterVideo, Inc. All other names used herein are trademarks or registered trademarks of their respective holders.