Well-known for its superior codec technology, InterVideo's patented codec algorithm enables consumers to record high-quality video clips without the jerkiness typical of handheld video cameras. Users will also be able to enjoy playback of crisp and clear picture quality of their recorded video clips with ease. InterVideo has been a long-time partner of Xcute, an innovative mobile phone design company based in Taiwan, since the development of their previous DV1 and DV2 cell phones. Both companies have again collaborated together to deliver consumers the latest in the Xcute next-generation 8-megapixel phones.

InterVideo has integrated its superior MPEG-4 codecs with Texas Instruments' DM270 platform in the Xcute GSM phone. The first 8-megapixel GSM phone in the world, the phone features InterVideo's advanced audio codec to playback MP3 and WMA files. The Xcute cell phone also includes InterVideo's MPEG-4 and DivX(R) video codec which allows consumers to record real time video clips at several resolutions up to VGA (640x480) at 30 fps (frames-per-second). The high-resolution camera phones deliver superior digital image quality that can be viewed on desktops, TVs, or other compatible handheld devices. In addition, the 8-megapixel phone can provide users with background music slideshow and media player features.

"InterVideo's superior MPEG-4 technology is the ideal multimedia codec solution for integration in our latest 8-megapixel GSM phone," said Winston Lee, Senior Manager of Marketing and Sales from Xcute Mobile Corporation. "We are delighted to work in conjunction with InterVideo and will continue to provide the latest multimedia features to our consumers with exceptional audio and video playback on their mobile phones."

"With the increasing popularity of next-generation cell phones and multimedia solution embedded in these handheld devices, we will continue to work with companies to provide our consumers with high-quality video encoding and decoding they have come to expect from InterVideo," said Steve Ro, President and CEO of InterVideo. "We are delighted to be working with XCute again in delivering the latest audio and video codecs in GSM phones."

InterVideo also provides individual video and audio codecs and multimedia editing applications on all major smartphone operating systems such as Linux(R), Windows(R) Mobile and Symbian.

About InterVideo, Inc.

InterVideo is a leading provider of integrated digital and high definition multimedia and audio/video content solutions in the PC, CE and wireless industries. The company's broad suite of integrated multimedia software products are designed to enhance consumer entertainment whether the content is delivered to the home system or HDTV set as well as wireless, mobile and personal multimedia device. InterVideo's unique iMobi(TM) multimedia codec technologies are widely used by smart phones, GPS units and portable entertainment device OEMs and ODMs to enhance music and video enjoyment...anyplace, anytime. The firm's worldwide headquarters is at 46430 Fremont Blvd, Fremont, CA., 510-651-0888, InterVideo has major offices in Taiwan, Japan, Mainland China and around the globe. For more information, visit www.intervideo.com.

Safe Harbor Statement

Except for the historical statements contained herein, the foregoing release contains forward-looking statements, including statements regarding InterVideo's codec technologies and iMobi handheld solution. These forward-looking statements are subject to risks and uncertainties, and actual results could differ materially due to several factors, the ability to forecast customer behavior and recognize or respond to emerging trends, changing preferences or competitive factors, the market acceptance of our new products and product enhancements, the resolution of any notices of claims regarding alleged infringement of third parties' intellectual property rights, the ability to maintain or expand our relationship with PC OEMS 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 Form 10-Q for other risk factors that could cause actual results to differ. 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. All other trademarks are the property of their respective holders.