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MGI signs OEM Licensing Agreements with Sony, Intel, Lexmark, Samsung, Gateway, Logitech, Ricoh, Konica, The Learning Company, Dixons Group and PhotoWorks


MGI's award-winning photo software to be included with digital cameras, PCs, printers, DV camcorders, consumables and photo solutions


MGI, a global leader in visual media software products and infrastructure, today announced multiple original equipment manufacturer (OEM) licensing agreements for bundling and/or private labelling its award-winning photo software, PhotoSuite, with products and solutions from Sony Corporation, Intel Corporation, Lexmark International, Samsung Electronics, Gateway, Logitech International, Ricoh, Konica, The Learning Company (now Broderbund), Dixons Group plc and PhotoWorks, Inc. The deals reflect MGI’s new strategic focus on OEM business expansion, and potentially represent more than 15 million units of MGI’s software to be distributed by its licensees worldwide during the next twelve months. No other details were disclosed.


Anthony DeCristofaro, MGI chief executive officer, said, "Earlier this year, MGI refocused its business model on more profitable growth areas, in particular OEM sales and relationship building. We are particularly pleased with these signings, as many of them are renewals, with expanded terms, for our market-leading photo products. Several of the licences involve MGI’s photo software being bundled across an OEM's complete product line."


The licensing agreements cover MGI's complete PhotoSuite family for Windows, Macintosh, Palm OS, and MGI Photovista (Panorama and 3D Objects Editions for Windows). MGI's products are shipping with new printers, multifunction devices, PCs, laptops, digital cameras, DV camcorders, printer consumables and photo solutions.


Michelle Slaughter, market research analyst, InfoTrends Research Group, said, "In spite of the worldwide economic situation, the digital imaging market will remain more resilient than others in the long term. Digital imaging products deliver compelling benefits which in themselves can create life enhancing experiences. The ability to view and share digital photos immediately is one of the key benefits that will maintain products such as digital cameras as top selling consumer items."


In a new report called '2001 Worldwide Digital Camera Forecast Study', InfoTrends predicts that digital camera sales will capture 21% of the worldwide camera market this year. By 2006, digital camera sales are expected to capture 63% of the total worldwide camera market. Revenue from digital cameras is forecast to reach US .9 billion in 2006. North America is the leading market for digital camera unit sales and will represent 47% of the worldwide sales in 2001. Japan is currently second with 25% of digital camera sales, followed by Europe with 23%.


Digital cameras are widely thought of as being first in the emergence of digital photography, but partners in this remarkable evolution include PCs, handhelds, scanners, printers, DV camcorders, consumables, online services, operating systems, and application software brought about by advancements that have made digital photography more real and accessible to millions of users.


MGI PhotoSuite 4 delivers a robust combination of image editing capabilities and photo projects designed to make Web and PC photography easy. MGI Photovista has become the leading product for creating panoramas and is noted for its exceptional image quality output. The software stitches a series of overlapping still images from any digital camera, camcorder or scanned in from paper prints, into a stunning and realistic panorama, which can be posted to the Web or printed. MGI PhotoSuite Mobile Edition delivers rich media for business applications and personal use to any Palm OS device or SD card. Unique to the product is its strong feature set for managing, viewing and sharing photos and videos on and between Palm OS devices. Earlier this year, MGI signed a licensing agreement with Palm Inc, to include MGI PhotoSuite Mobile Edition on its Palm 'm' series expandable handhelds.


Notes to Editors


For further information, please contact:

Jenny Hodge, communications manager, MGI Software, tel: +44 (0)1908 278106 / +44 (0)7775 897360, email: jennyh@mgieurope.com


MGI contact information for publication:

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

OEM customer enquiries: 01908 278100


About MGI


MGI (TSE:MGI) is a leading global provider of visual media software and infrastructure solutions that enable individuals and businesses to maximise their use of digital images and video. The Company's flagship PhotoSuite and VideoWave products are distributed in more than 40 countries through traditional and online channels, and leading commercial websites worldwide use its image server technologies and web tools. The Company's offerings include proprietary technologies supported by over 90 patents and patent pending applications. With headquarters in Richmond Hill, Canada, MGI maintains branch offices in the United Kingdom, France, Germany, Japan, Taiwan and Korea. MGI is ranked among Canada's top ten fastest growing technology companies based on the percentage of growth in revenues from 1996-2000.


More information may be obtained on the Company at http://www.mgisoft.com and http://www.mgieurope.com


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).


(c) MGI Software Corp., 2001. MGI and PhotoSuite are trademarks or registered trademarks of MGI Software Corp. All other company and/or product names are trademarks and/or registered trademarks of their respective manufacturers.


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