Irvine, CA — July 19, 2005 — FarStone Technology, Inc., a software developer of security solutions and performance utilities for PCs and networks, and InterVideo, Inc. (NASDAQ: IVII), a leader in digital media software technology and PC/CE convergence, today jointly announced a licensing agreement to incorporate FarStone’s VirtualDrive^® technology with InterVideo WinDVD^®.

FarStone’s VirtualDrive 9.0 SE (Special Edition) will be bundled with InterVideo’s award-winning DVD playback software, WinDVD, adding virtual CD and virtual DVD capabilities. WinDVD, the world’s leading DVD playback software with over 125 million installations worldwide, features enhanced video format along with next generation rich audio surround sound capabilities. In addition, the WinDVD application is a universal player that provides support for more video and audio formats than any other option.

The bundled offering from the two industry leaders builds upon the product strengths of both companies, providing full-featured, leading-edge multimedia technology to its consumers. The multi-year, worldwide licensing agreement encompasses future VirtualDrive upgrades and InterVideo will offer the bundled product in 22 different languages.

“As digital content creation and entertainment converge with the home and mobile PC market, consumers and businesses are growing more sophisticated and the demand is increasing for high-performance, high-speed multimedia that is flexible, powerful and affordable,” said William Wang, vice president of worldwide sales for InterVideo. “FarStone helps us meet these requirements for our largest OEMs and PC manufacturer channel partners.”

“We’re very pleased to partner with InterVideo to further expand the value-added multimedia capabilities available to manufacturers, which in turn will allow their customers to better manage and enhance their enjoyment of digital media content,” said Tom Fedro, vice president, sales and marketing, FarStone.

FarStone’s VirtualDrive allows end users to create multiple virtual CD/DVD-ROM drives and virtual images (VCDs) of their CD and DVD libraries directly onto their hard drive, enabling them to access their content and even play PC games directly from the hard drive without inserting the physical CD/DVD-ROM disc. This patented FarStone technology allows the VCD images to launch instantly with access times reduced by up to 75 percent when compared to a physical drive.

FarStone’s VCD approach, also available in a network version, is ideal for organizations of all sizes, ranging from small to medium size businesses, Fortune 500 companies and academic institutions. Connected to a host computer that manages the VCDs, networked users are able to easily access the content as if it were on their local drive. The VCD drive can be custom-configured for secure, managed access without the requirement of physical media.

About FarStone

Founded in 1993, FarStone Technology is a leading developer of PC and network-based digital content security, replication and management solutions. FarStone is an ISO 9001 certified software publisher holding multiple technology patents. The technology was created to enable computer users to achieve maximum productivity through improved security and performance. Headquartered in Irvine, CA., the company licenses its software to corporations, small businesses, educational institutions and consumers worldwide. FarStone’s global technology partners include Intel, NEC, Phoenix Technologies and Toshiba.

 About InterVideo

 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 top ten PC OEMs ranked in terms of sales by IDC. The company is headquartered in Fremont, CA with regional offices in Europe, Taiwan, China and Japan. For more information, please contact InterVideo at (510) 651-0888, or visit the company’s Web site at www.intervideo.com.

FarStone Media Contact

Bob Menzies
Lages & Associates
(949)453-8080
Bob@lages.com

InterVideo Media Contact

Joanna DeKlavon
InterVideo, Inc.
(510) 651-0888 Ext. 121
pr@intervideo.com