Today Denver Public Library became the first
library in the nation to offer free downloads of copy protected movies, TV
shows, and educational videos. (NASDAQ: DISK); Sounds True,
award-winning producer of spiritual, health, and healing videos; Clearvue &
SVE, with a vast catalog of educational multimedia; and family and teen
titles from TOPICS Entertainment.overdrive.pinnaclesys.

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"Downloadable video gives our patrons 24/7 online access to
exceptional films and allows the Denver Public Library to have this type of
format without the space, handling, and damage issues normally associated
with DVDs or tapes," Ms.A. (www.

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com website (www.php.

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Denver Public Library and thousands of US and foreign
libraries are using similar download services for OverDrive Audio Books and
eBooks.
"Pinnacle creates great products that make video editing simple
and enjoyable for consumers," said Kevin Hell, Chief Operating Officer
at DivXNetworks , Inc. For more
information on Pinnacle Systems, visit www.

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The two companies will work together to market DivX Licensed
Pinnacle products to consumers through a variety of outlets, including
the popular DivX.divx.

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With OverDrive
Video a user downloads a movie to their Windows-based PC, notebook , or
portable media player. "Public libraries have always been the
leaders in introducing new services for providing reading, audio, and video
content to the community.com).

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Films available include Academy Award
nominated IMAX Movie "The Living Sea" narrated by Meryl Streep featuring
songs and music by Sting; Federico Fellini's Academy Award winner "8 1/2"
starring Marcello Mastroianni; travelogue "Yellowstone National Park";
self-help titles including "Meditation for Beginners"; and cult-classics
such as the surfing film "The Endless Summer" are just a few of the titles
available at http://downloadmedia.com.

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Over 20 million
DivX Certified DVD Players were shipped globally in 2004.

Sites selling a single format belong in one of the format-specific subcategories.

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divxnetworks .com/solutions/licensing.

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"We are investing in the future of audiovisual materials and responding to
the growing online and connected capabilities of our customers," stated
Michelle Jeske, Manager of Web Information Services for Denver Public
Library.

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denverlibrary. A user never needs to return
an OverDrive Video as they automatically reset themselves in the library
catalog when due.pinnaclesys .

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As public librarians gather in
Boston this week for their national conference they will be viewing a new
service for download video.divxnetworks.
To learn more about licensing DivX software , visit
http://www. Pinnacle Systems may
be reached at 650-526-1600 or at www.

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DivX is among the world's most
popular video technologies, with over 160 million global users.
The addition of the popular and powerful DivX video technology
will enable Pinnacle users to create high-quality, highly -compressed
DivX video files that can be played back on a wide range of DivX
Certified consumer electronics devices from major manufacturers,
including Philips, Sony, Toshiba, Pioneer and more . and its subsidiaries in the
United States and other countries.

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They are experts in serving the information and
entertainment interests and needs of patrons of all ages," Mr. The
service and software are not compatible with Mac or iPod. For more
information about OverDrive Video please see www.com
The first Pinnacle product to incorporate DivX video technology,
Pinnacle Studio version 9 is an easy-to-use software video editor that
enables users to capture, edit and add titles, music , narration and
special effects to home movies, which can then be outputted to
videotape, DVD and the Internet. The company's core
offering is the DivX(R) video codec, among the world's most popular
video compression technologies, with over 160 million users worldwide. All other trademarks are the property of their
respective owners.

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Denver Public Library Digital OverDrive - DLR

The new service was developed by OverDrive , Inc." OverDrive is also in negotiations with A&E's exclusive
home video distributor, New Video , for rights to distribute Docurama, New
Video's line of award-winning documentaries and festival winners such as
D. Pennebaker's classic film on Bob Dylan, "Don't Look Back. Potash
added.

Pinnacle Systems provides broadcasters and consumers with
cutting-edge digital media creation , storage and play-back solutions
for use at Home, in the Studio and on the Air.

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PRESS RELEASE Download Movies Now Available From Public Library Website

org. of Cleveland, Ohio who is
expanding its digital media catalog of over 100,000 eBooks, audiobooks, and
music CDs with OverDrive Video, digital versions of feature films, movie
classics, concerts, educational materials, and TV shows. The titles are copy protected using Microsoft
Windows Media Rights Manager that restricts file sharing and rights to view
the movie after the lending period is over. OverDrive Video on the PC uses a free Windows software
program entitled OverDrive Media Console that provides download, library
services, and intuitive DVD-like controls such as fast-forward, speed,
bookmarks, and accessibility features for the visually impaired.

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Initial movie and video suppliers working with OverDrive and the libraries
include leading independent home entertainment company Egami Media, a
subsidiary of Image Entertainment , Inc. OverDrive is in negotiations with A&E
Home Video for rights to distribute hundreds of their award-winning
programs including titles from "The History Channel," "Biography,"
"America's Castles ," "Modern Marvels," "Mysteries of the Bible," and the
"The Real West.wmv) including the
Creative Labs Zen Vision, Pocket PCs from Dell, Toshiba and HP, and
Smartphones.

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"
DivX is a great video technology with widespread global support
that offers interoperability across devices and platforms , and we
believe the addition of DivX to our product line will add real value
to our user base ," said Tanguy Leborgne, Director of Consumer Product
Marketing for Pinnacle Systems. DivXNetworks is
headquartered in San Diego, Calif.

About Pinnacle Systems, Inc.

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"With the addition of
DivX technology, Pinnacle users will now be able to create
high-quality video files that they can then easily view in the living
room or on the road using any DivX Certified DVD player or portable
device .

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Jeske added."

"We are very proud to be partnering with public librarians to help develop
the future for delivery and enjoyment of download movies and video," stated
Steven Potash, OverDrive CEO.

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, the company that created the revolutionary
DivX video technology, today announced that Pinnacle Systems
(Nasdaq:PCLE), a leader in digital video solutions, has licensed DivX
video technology for their leading line of video software and hardware
products.com

About DivXNetworks

DivXNetworks is a consumer-focused video technology company
positioned at the center of multimedia convergence. Pinnacle Systems' award
winning digital media solutions are in use around the world for
broadcast, video and audio editing, DVD and CDR authoring and on the
Internet.com

Pinnacle Systems and Pinnacle Studio are trademarks or registered
trademarks of Pinnacle Systems, Inc.

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Download video from the library can be watched on Windows PCs and portable
devices that support protected Windows Media video (. DivX video technology powers a range of applications that
span the convergence value chain, from a secure IP-based
video-on-demand solution to next-generation consumer electronics
products and video software applications. DivX is a trademark of
DivXNetworks.

Sites selling at least two different formats of video recordings, such as videotape and DVD, or DVD and VCD.

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Pinnacle Systems Licenses Leading DivX Technology for Video Software and Hardware Line

The patent-pending DivX video technology offers DVD-quality at 10
times greater compression than MPEG-2 files, enabling full length
films to easily fit on a CD or be delivered over broadband
connections. A recognized industry leader, the Company has received nine
prestigious Emmy Awards for its technical innovations and carries this
commitment throughout all of its product lines.

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Business Editors/High-Tech Writers

SAN DIEGO----

Pinnacle Studio Users Can Create High-Quality DivX
Videos for Playback on DVD Players and Portable Devices

DivXNetworks , Inc.