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MGI Software, a leader in visual media software products and infrastructure, today announced a strategic development and licensing agreement with Palm, Inc., a leading provider of handheld computers. MGI has been working with Palm to develop an enhanced version of MGI PhotoSuite Mobile Edition, which takes advantage of the expansion capabilities of Palm’s newest handheld computers, the m500 and m505, announced by Palm today. MGI's software, which allows users to view, store and beam photos and videos on Palm Powered™ handhelds, is included in the box with the new Palm™ handhelds. In addition, the companies are collaborating on a variety of future initiatives, including wireless imaging utilising MGI Zoom Image Server. Further terms of the agreement were not disclosed.

*** MGI will hold a telephone press conference today at 18.00 UK time to discuss the agreement. Media, analysts and investors are invited to join Anthony DeCristofaro, MGI president and chief executive officer, and guest analyst, Lia Schubert of InfoTrends Research, on the call. Please dial 001-416-695-5806 to attend the MGI press conference. For those unable to participate, the event will be archived for audio replay (please call 001-416-695-5800, passcode 723211) and will also be available on the MGI web site at www.mgisoft.com. ***

Anthony DeCristofaro, MGI president and chief executive officer, said, “The opportunity to be part of the Palm handheld user experience brings us another step closer to making PhotoSuite the ubiquitous choice in consumer imaging. We are very excited to have PhotoSuite Mobile Edition bundled with the Palm m500 and m505 handhelds.”

Byron Connell, vice president, Product Management and Planning, Palm, Inc., said, “We chose MGI to be part of the m500 and m505 out-of-the-box experience for several reasons, including MGI’s leadership in digital imaging and the PhotoSuite brand recognition among consumers. Imagine: videos and photos stored on a card about the size of a postage stamp, available for viewing whenever and wherever you want. Just put them in your pocket and take them with you.”

The enhanced version of MGI PhotoSuite Mobile Edition takes advantage of the expansion card slot in the Palm m500 and m505 handhelds to store, view and beam photo and video files. It also supports the 16-bit (65K) colour capability of the m505 model. The desktop component transfers photo and video files onto the handheld or any Secure Digital (SD) card or MultiMediaCard media.

Whether the user is loading images or video for a product catalogue, business presentation or simply pictures of the family, PhotoSuite Mobile Edition allows them to optimise their media files easily prior to transfer. The software offers the widest file support available, as well as video playback at 30 frames per second (fps), video pause, and single frame advance and rewind. MGI PhotoSuite Mobile Edition received the coveted 'Innovative Digital Product Award' from DIMA (Digital Imaging Marketing Association) at its national convention in February.

Notes to Editors:

This release complements today’s announcement from Palm, Inc. regarding the Palm m500 series handheld computers.

For further information, please contact: Jenny Hodge, communications manager, MGI Software, tel: 01908 278106 / 07775 897360, email: jennyh@uk.mgisoft.com.


B-roll video footage featuring an interview and product demonstration of MGI PhotoSuite Mobile Edition is available for TV stations – please contact Jenny Hodge on 01908 278106 for further details.

MGI contact information for publication:

MGI web site: http://www.mgisoft.com


MGI customer enquiries: 0800 973830

About MGI

MGI is a leading provider of visual media software products and infrastructure that maximise the use of digital visual content by businesses and individuals. We do this by providing software and services that uniquely enhance every step of the visual media communications cycle, including capturing, creating, streaming, viewing, storing, sharing and publishing. Using our software, businesses and individuals create rich visual content to deliver optimal Internet experiences that communicate, drive user enjoyment and customer frequency, duration, transactions and satisfaction. With headquarters in Richmond Hill, Ontario, MGI employs over 300 people with offices in North America, Europe and Asia Pacific. MGI Software is publicly traded on The Toronto Stock Exchange under the symbol ‘MGI’. In the UK, MGI is a member of the British Photographic and Imaging Association (BPIA), the Photo Marketing Association International (PMA) and The European Leisure Software Publishers Association (ELSPA).

© MGI Software Corp., 2001. MGI and PhotoSuite are trademarks or registered trademarks of MGI Software Corp. Palm Powered and Palm are trademarks of Palm, Inc. or its subsidiaries. All other company and/or product names are trademarks and/or registered trademarks of their respective manufacturers.

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