Pinnacle Systems Gains Industry Recognition and Strengthens its Presence in Mainstream Consumer Market Segments

Cited by Microsoft for Delivering Exemplary Solutions to Consumers

MOUNTAIN VIEW, Calif., July 2008—Pinnacle Systems, Inc., the consumer division of Avid Technology, Inc. (Nasdaq: AVID), today announced that as a result of its ongoing strategy to make video editing and sharing easy for casual users, its customer base is moving beyond the enthusiast marketplace and gaining more users who are new to video but want to take full advantage of the opportunities offered by simple yet powerful tools that enhance their digital lifestyle.

Known for delivering the industry’s most innovative, yet easy-to-use solutions, Pinnacle Systems products include Pinnacle Studio™, which is #1 in the consumer video editing market in the U.S. and in major European countries1and Pinnacle PCTV™, the #1 selling brand in TV viewing for the PC in the same regions1. Pinnacle Systems’ innovative edge has also been recognized by industry leaders such as Microsoft, which recently named Pinnacle a top finalist for the Microsoft Partner of the Year Global ISV Consumer Special Recognition Award.

“Most consumers just want fast, easy solutions that take the complexity and frustration out of video editing and sharing,” explained Tanguy Leborgne, Pinnacle Systems vice president of worldwide marketing. “In fact, our latest survey2 of Pinnacle Studio version 11 users shows that we are attracting significantly more ‘casual users’ who are either students, young adults or the “memory keeper” of their family. Their goals are more about sharing and preserving than solely editing. In responding to the survey, these users said they were more focused on turning still pictures into movies and wanted more guidance while doing this. They’re turning out to be more often female and younger than our typical video enthusiast who in the past was as much as 95 percent male and an older demographic.”

The innovative new Pinnacle Studio Version 12 builds on this trend. With the new Pinnacle Montage feature, high-end effects and animation capabilities previously available only to professionals are available in automated templates that are easy to learn and use. In addition, Pinnacle Systems’ groundbreaking – and free – VideoSpin™ software is enabling the “YouTube™ Generation” to take advantage of fast and easy video editing with single-click sharing to social networking sites.

These new tools are making it easier for consumers of all ages and interests to take advantage of the digital media capabilities of their PC – a fact recognized by Microsoft in naming Pinnacle Systems a finalist for Partner of the Year. In addition to working closely with Microsoft to ensure the certification of its products on Windows XP and then Windows Vista, Pinnacle Systems was also an early partner on key initiatives like Microsoft Crossfader and the www.ultimatePC.com launched earlier this year by Microsoft for Windows Vista Ultimate users.

The Global ISV Consumer Special Recognition Award honors Microsoft Certified global partners that delivered exemplary solutions for their customers during the past year. “Partners are critical to delivering rich business solutions and innovative excellence to customers,” said Allison Watson, Corporate Vice President, Worldwide Partner Group, Microsoft Corp. “Congratulations to the 2008 Partner Award winners who have each demonstrated innovation beyond measure and an unswerving commitment to delivering the highest levels of customer satisfaction. We look forward to these partners continuing to raise the bar in the design and deployment of customer solutions built on Microsoft technologies.”

By making digital media more accessible to a greater number of users, Pinnacle Systems is helping to deliver on the promise of a connected, digital world across a broader spectrum of users than ever before.
© 2008 Avid Technology, Inc. All rights reserved. Product features, specifications, system requirements, and availability are subject to change without notice. Avid, Digidesign, Film Composer, M-Audio, Pinnacle Systems, Sibelius, Softimage, Sundance Digital, the Pinnacle Pinwheel logo, Pinnacle PCTV, Dazzle, Pinnacle ShowCenter, Pinnacle MobileMedia, and Pinnacle Studio are trademarks or registered trademarks of Avid Technology, Inc. or its affiliates in the United States and/or other countries. Oscar is a trademark and service mark of the Academy of Motion Picture Arts and Sciences. Emmy is a registered trademark of ATAS/NATAS. Grammy is a trademark of the National Academy of Recording Arts and Sciences, Inc. All other product or service names mentioned herein may be the trademarks of their respective owners.

Sources
¹The NPD Group/Retail Tracking/Consumer Video Editing (Annual 2007) - US
Based on consumer sales for 4 European countries (DE, FR, IT and GB cumulated) annual 2007 in the GFK Retail-Market
²Pinnacle Survey – November 2007, 10,286 responses (US, UK, FR, DE)