(EMAILWIRE.COM, January 08, 2001 ) CAMPBELL, CA and TORONTO, ONT -- MGI (TSE:MGI), a leader in visual media software products and infrastructure, today announced MGI PhotoSuite Mobile Edition, a new product that extends MGI's market-leading imaging technology to the emerging Palm OS-based handheld market. MGI PhotoSuite Mobile Edition allows users to easily store, view, and share photo and video files on both color and grayscale Palm OS handhelds, and comes complete with a robust Windows desktop application for quickly fixing photos and optimizing media files prior to transfer. MGI is debuting the new software at the Palm Pavilion, as part of CES 2001 (the International Consumer Electronics Show -- Las Vegas Convention Center Silver Lot Booth #24000), which runs January 6-9, 2001.

"Handheld devices built around the Palm OS provide new opportunities for MGI to grow its status as a worldwide imaging leader while adding new revenue potential," said Anthony DeCristofaro, president and CEO, MGI. "MGI has successfully demonstrated that its imaging technology, which has made the PhotoSuite software for Windows the most popular PC photo brand, is capable of application on a variety of platforms; at first on the Internet with iPhotoSuite, and now the Palm OS platform."

According to industry research, handheld computing devices are part of the next stage in the evolution of computing platforms, with Palm OS-based handhelds accounting for about 70% of the market. For example, Palm Inc., in its second quarter ended November 30, 2000, reported that it shipped 2.1 million units in the quarter, an increase in unit shipments of 45% sequentially from approximately 1.5 million units shipped in the prior quarter, bringing its to date installed base to approximately 10.9 million units. Some expectations peg worldwide Palm unit shipments will grow to as much as 35 million devices by 2003 (Source: Wit SoundView Corp. research on Palm November 17, 2000). MGI PhotoSuite Mobile Edition may be run on any Palm OS handheld, including the Palm(tm) family of handhelds, Handspring(tm) Visors, and Sony Cliè(tm)s.

MGI PhotoSuite Mobile Edition comprises of two elements, PhotoSuite Mobile Organizer, which is the desktop application, and PhotoSuite Mobile Album, which resides on the Palm OS handheld. The PhotoSuite Mobile Organizer lets users store, view (including pan and zoom), and share media on their handheld device, create slide shows with timed or manual playback, and supports video playback at a full 30 fps (frames per second). The software also supports the 'beaming' of photos and videos to other handhelds while retaining all the essential color and image information even when 'beamed' between gray scale and color screen units.

The desktop software allows users to acquire media files from a variety of sources, and edit and enhance photos as well as optimize pictures and videos prior to transferring them to the handheld device. It also supports and converts popular media file formats including .JPG, .PNG, .TIF, .BMP, .GIF, .AVI, .WMV, .MOV. The software is certified as a Palm Powered(tm) Compatible Solution, passing rigorous testing for usability and quality. MGI PhotoSuite Mobile Edition will be available February 2001.

"Handheld wireless devices are evolving into ideal portable photo platforms, with an ability to capture images, send or receive snapshots and videos, store albums, and display business presentations," said Kristy Holch, principal analyst at InfoTrends Research Group, Inc. "These applications are already in use today around the world, and they will become more widespread as the technology matures and awareness grows. MGI is targeting the needs of a growing base of users."

About MGI
MGI is a leading provider of visual media software products and infrastructure that maximize 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".

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(c) MGI Software Corp., 2001. MGI, PhotoSuite and iPhotoSuite 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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