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Business News (more headlines) 04-03-2003

Macrovision Protected Music CDs Surpass 100 Million

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Santa Clara, CA, April 2, 2003 - Macrovision Corporation, the world's leading developer and vendor of content protection and security technologies announced today that the number of Music CDs encoded with Macrovision copy protection now exceeds 100 million units.

Macrovision produces "dual session" music CDs that contain both "red book" audio files, which play on traditional music playback devices and car stereos, and "second session" data files that can be played on a consumer's PC. Macrovision's CDS technology prevents the ripping of the audio files and inhibits unauthorized file sharing and CD burning. Macrovision is currently manufacturing protected discs in Europe, Asia, Australia and Latin America. There are now over 30 manufacturers who are equipped to supply Macrovision CD copy protection to rights owners worldwide.

The 100 million CDs produced to date include releases from most of the five major worldwide record companies, in addition to major record labels in Japan. These copy- protected music CDs have had excellent playability and effectiveness. Macrovision continues to develop "dual session" solutions that will be compatible with Microsoft and other third party digital rights management ("DRM") vendors.

"Surpassing 100 million CDs is an important milestone in the development of music CD copy protection," said Macrovision president and CEO Bill Krepick. "We have invested heavily in developing our technology over the past several years, and it is gratifying to see our efforts validated by such wide deployment by the major music companies."

"Record labels are facing unprecedented challenges due to unauthorized file sharing and rampant CD burning," said Adam Sexton, vice president of marketing of Macrovision's Music Technology Division. "We are pleased we have been able to balance the needs of protecting the content of the music industry while, at the same time, offering consumers the PC playability they have come to expect."

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