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Online PC photo service encourages consumers to be creative with pictures; generates revenue opportunities

MGI Software, a leading provider of visual media software products and infrastructure, today announced that PictureVision, Inc., a wholly owned subsidiary of Eastman Kodak Company has become the first customer to sign an agreement for MGI iPhotoSuite, an online application service that emulates the experience of MGI's popular PC photography software - PhotoSuite - through the Internet. iPhotoSuite enriches web sites by enabling consumers to edit their pictures online and use their photos within professionally-designed project templates that can be printed in high quality. Further terms of the agreement were not disclosed.

iPhotoSuite is a service for photo-finishing and photo-sharing sites, portals and branded destinations that allows visitors to edit their pictures online and use them within high-quality, professionally-designed project templates. The project templates (iTemplates) combine a user's photo within the unique attributes of specially designed content, such as wedding invitations, birth announcements or locker posters, applying the necessary effects for an artistic, professional-looking finish that prints in very high quality. iPhotoSuite is designed to encourage site stickiness and offers revenue potential when the user requests a print of the project. The iPhotoSuite service is currently being integrated into Kodak PhotoNet online and will launch during the Christmas period.

Anthony DeCristofaro, President and CEO, MGI, said, "Providing iPhotoSuite to Kodak PhotoNet online brings us strong brand recognition, access to consumers, and an infrastructure that can fulfil iPhotoSuite-composited prints in very high quality. This agreement will enable us to target other web communities, such as branded destination sites, that are looking for a comprehensive service delivering the benefits of iPhotoSuite with the capability of print fulfilment."

David MacWhorter, President, PictureVision, Inc., said, "MGI's iPhotoSuite brings PictureVision’s online community, and the communities of our partners, a new service that lets people easily do more things with their pictures on the Web. As consumers become more aware of what they can do with digital pictures, their interest broadens to our whole range of products, providing more fun, more sharing, and ultimately driving the greater use of pictures. We're providing more reasons to take pictures, create prints, and share those memories in unique ways."

About iPhotoSuite

iPhotoSuite is designed for any Web site that serves consumers, such as photo-finishing and photo-sharing sites, portals and branded destinations, that are looking to increase online revenues, create site stickiness and enrich their online community. The service provides the ability to create, edit and share affinity-specific projects, such as newlyweds making photo-enriched 'Thank You' cards from a wedding site, which can be printed in high quality either at home or through a photo-finisher. iPhotoSuite uses MGI's patented resolution independent image compositing technology, and is built upon the MGI ZOOM Image Server platform. The application is highly scalable, and requires no plug-ins or fast Internet connection - making for a fast, fun experience.

Notes to editors

For further information, please contact:

Jenny Hodge,

MGI,

01908 278106,

07775 897360,

jennyh@uk.mgisoft.com


About PictureVision

Based in Herndon, VA, PictureVision, Inc., the pioneer in online photography since 1995 is a wholly owned subsidiary of Eastman Kodak Company. PictureVision provides the imaging industry with turnkey solutions and patented technologies for increasing sales by leveraging the consumer evolution to digital photography. PictureVision’s patented core technology provides the foundation for online digital photography services such as Kodak PhotoNet online and AOL’s "You've Got Pictures" sm. PictureVision provides online photography services for strategic partners, including photo retailer Wolf Camera, mail-order processors Mystic Color Lab and York Film Developing, as well as professional photography provider Lifetouch. PictureVision technology also adds functionality to leading image editing software programs such as MGI’s PhotoSuite and Microsoft’s PictureIt and to Web sites including PrimeShot.com, AmazingMail.com and PhotoFrames.com. For more information, please visit http://www.picturevision.com


and http://www.kodak.photonet.com


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'.

(c) MGI Software Corp., 2000. MGI, iPhotoSuite and ZOOM are trademarks or registered trademark of MGI Software Corp. All other company and/or product names are trademarks and/or registered trademarks of their respective manufacturers.

This press release contains statements that are forward looking and are based on current expectations that are subject to risks and uncertainties. Actual results will differ due to factors such as shifts in customer demand, product shipment schedules, product mix, competitive products and pricing, technological shifts and other variables.

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