InterVideo and WinBook settle patent dispute with agreement WinBook Computers will include InterVideo “InstantON” and WinDVD software 

Settlement Enables WinBook to Sell Computers that Integrate Personal Computer and Consumer Electronic Functions into Convergent Devices Based on InterVideo Technology

FREMONT, CALIF.  -- February 3, 2006 -- InterVideo, Inc. (NASDAQ: IVII), a leading provider of software solutions to tier-one consumer electronics and PC manufacturers, announced that WinBook Computer Corporation (http://www.winbook.com) has entered into a settlement agreement intended to end their litigation in the United States International Trade Commission (“ITC”).

WinBook has agreed to make available InterVideo’s InstantON technology and its universal DVD player, WinDVD, for use in all WinBook computers that integrate personal computer and consumer electronic functions into a single convergence device. WinBook will also sell the full range of InterVideo products through its internet distribution channels. Intervideo and WinBook will collaborate in introducing the full range of InterVideo products with WinBook computers. 

Known as PC/CE Convergent Devices, these products are at issue in an ITC investigation under Section 337 of the Tariff Act of 1930 for infringement of U.S. Patent No. 6,765,788 entitled “Method and Apparatus for Integrating Personal Computer and Electronic Device Functions.” InterVideo Digital Technology Corporation is requesting the ITC to enter permanent exclusion orders and permanent cease and desist orders against unlicensed products at the conclusion of the investigation.

The ITC investigation is continuing against PC/CE notebook computers sold by Dell, Inc. under the “Inspiron” label and technology supplied by Cyberlink Corporation of Taiwan and Cyberlink.com of Fremont, California. 

“We are pleased to reach an agreement with InterVideo as this marks a significant step forward between both companies,” said Richard M. Mershad, president and CEO of Micro Electronics, Inc, and WinBook Computer Corporation. “By resolving these legal issues, WinBook and InterVideo can now focus on delivering to consumers advanced technology and superior playback from WinDVD, integrated with WinBook’s consumer product line.”

“InterVideo and WinBook amicably resolved their dispute at the ITC and are now moving into a mutually beneficial relationship,” announced Steve Ro, president and CEO of InterVideo. “We look forward to WinBooks’ continued success and will work with WinBook and its suppliers to provide consumers with the best available PC/CE convergent solutions.”

InterVideo is a recognized leader in enabling personal computers with consumer electronics device functionality and believes in promoting ingenuity through the protection of intellectual property.

About WinBook
WinBook is the leading American direct computer systems company to focus exclusively on portable computing products accessories and LCD televisions. WinBook products have been recognized by the press with over 600 awards, including awards from BusinessWeek.com, CNET, Computer Shopper, Geek.com, LAPTOP, PC Magazine, PC World, The Robb Report, Smart Computing and ZDNet. 

WinBook notebook computers are sold directly at http://www.winbook.com. In addition, customers who want to try out a WinBook product before purchasing can sample many new WinBook products at Micro Electronics’ nineteen Micro Center stores nationwide, where they can purchase on the spot.

About InterVideo, Inc.
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 leading PC OEMs. The company is headquartered in Fremont, CA with regional offices in Europe, Taiwan, China and Japan. For more information, contact InterVideo at 510/651-0888 or visit the company's Web site at http://www.intervideo.com.

Safe Harbor Statement
Except for the historical statements contained herein, the foregoing release contains forward-looking statements, including statements regarding the timing and possible outcomes of the ITC investigation, and the protection of our intellectual property. These forward-looking statements are subject to risks and uncertainties, and actual results could differ materially due to several factors, including but not limited to the inherent uncertainty in litigation and the risks of not successfully proofing validity or infringement of our ‘788 patent; legal expenses may adversely impact our operating results; time and resources from management may distract their attention from the core business; adverse effects on existing business relationships with suppliers and customers; unsuccessful efforts or delays in new products development; customers’ acceptance of InstantON technology; increased competition and pricing pressure; other litigation or claims regarding alleged infringement of third parties’ intellectual property rights; 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 quarterly report on Form 10-Q for other risk factors potentially affecting the Company. 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 registered trademark of InterVideo, Inc. All other trademarks are the property of their respective holders.