Macrovision Corporation announced that the Company has been informed that no agreement was reached by August 1st, as previously anticipated, by the interim Board of Directors of the DVD Copy Control Association (DVD CCA) on a watermarking technology selection. It is Macrovision’s understanding that the DVD CCA Board of Directors has now expanded from the interim six members to its permanent eleven members. Macrovision is one of the seven companies, including Digimarc, Hitachi, Macrovision, NEC, Philips, Pioneer, and Sony, making up the VWM Companies and serves as the VWM Companies’ licensing agent for the entirety of the VWM watermarking solution. The VWM Companies submitted a bid in response to the DVD CCA’s RFP for Watermarking Technology in November 2001. Macrovision was informed by the DVD CCA that it still considers the VWM Companies’ proposal to be valid for one year from the date of submission and is still eligible for consideration by the DVD Copy Control Association.

Bill Krepick, Macrovision president and CEO, expressed disappointment with the failure of the interim Board to make a decision. Mr. Krepick said, “the VWM companies worked very hard over the past nine months to respond to the DVD CCA request for proposal and to support them in their extensive evaluation and analysis. I thought that we had addressed all the questions that the interim DVD CCA Board had with the VWM Companies’ original bid to the satisfaction of most of the interim DVD CCA’s Board members. I believe that the VWM Companies’ proposal fully met the requirements for a watermarking technology as expressed in the DVD Copy Control Association’s Instructions to Bidders. In spite of this further delay, the VWM Companies are committed to provide additional assistance to the expanded Board to help them understand the advantages of the VWM solution as they complete the task of selecting a watermarking technology.”