InterVideo Inc. Announces Final Results of Tender Offer to Purchase Co

    Business Editors/High-Tech Editors

    FREMONT, Calif.--(BUSINESS WIRE)--April 18, 2005--InterVideo, Inc. (Nasdaq:IVII), a leading provider of DVD software, announced today the final results of its previously announced tender offer to purchase a controlling interest in Ulead Systems ("Ulead") (TSE:2487.TW), which expired on April 13, 2005. Through the tender offer, InterVideo will purchase a total of 33,284,395 shares of Ulead common stock at the price of 30 NT (US$0.95) per share, or a total of $31.6 million. Following completion of the tender offer and the purchase of additional shares pursuant to a stock purchase agreement, InterVideo is expected to own a total of 62.4% percent of the issued shares of Ulead. This includes shares InterVideo purchased prior to the tender offer.
    The deal is expected to be accretive to InterVideo's 2005 earnings based on InterVideo's current understanding of Ulead's business. InterVideo plans to begin integrating the companies' product and technology development efforts during the second quarter. Ulead's strengths in professional DVD authoring, video editing and still image processing complement InterVideo's tools and enhance capabilities for addressing emerging and rapidly growing markets including multimedia home networking, high definition and Blu-ray DVD and multimedia mobile phones.
    The tender offer is expected to close on April 20, 2005 and is subject to customary closing conditions. A Form 8-K will be filed after the closing of the tender offer. The Form 8-K will be available on the Company's website at: www.investor.intervideo.com or at the Securities and Exchange Commission's website at: www.sec.gov.

    About InterVideo, Inc.

    InterVideo is a leading provider of DVD software. InterVideo has developed a technology platform from which it has created a broad suite of integrated multimedia software products that allow users to capture, edit, author, burn, distribute, and play digital video. InterVideo's software is bundled with products sold by the majority of the leading PC OEMs. The company is headquartered in Fremont, CA with regional offices in Europe, Taiwan, China and Japan. For more information, contact InterVideo at 510/651-0888 or visit the company's Web site at www.intervideo.com.

    Safe Harbor Statement

    Except for the historical statements contained herein, the foregoing release contains forward-looking statements, including statements regarding, among other matters, the anticipated transaction value, our belief that the deal will be accretive to 2005 earnings, the percentage of the issued shares of Ulead that we expect to own, our integration plans and enhanced capabilities for addressing emerging and rapidly growing markets. 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 risk that the tender offer might not be consummated; unanticipated developments or events concerning the financial condition, assets, operations, business or prospects of Ulead; unanticipated costs associated with the transaction; adverse effects on existing business relationships with suppliers and customers; customers acceptance of new technology or product offerings; the markets for multimedia home networking, high definition and Blu-ray DVD and multimedia mobile phones do not grow as rapidly as anticipated; problems maintaining internal controls and procedures with a company with significant presence in Taiwan; problems integrating the operations, personnel, technologies or products of the two companies; conflicts of interest issues that might arise between InterVideo and Ulead as a majority-owned subsidiary; potential loss of key management, engineers and other employees 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 annual report on Form 10-K for other risk factors potentially affecting the Company's future financial results. 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. All other trademarks are the property of their respective holders.

--30--JT/sf*

CONTACT: The Blueshirt Group (for InterVideo) Lisa Laukkanen, 415-217-4967 (Investor) lisa@blueshirtgroup.com

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: ENTERTAINMENT SOFTWARE MERGERS/ACQ SOURCE: InterVideo, Inc.

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