Boulder, Colo. - May 8, 2000 - Draco Systems Inc, distributor of Casablanca digital video editing systems in the Americas, will strengthen its ties to MacroSystem Digital Video AG by merging with the Germany-based manufacturing company.

The Casablanca emerged from the concept of a "nonlinear video editing system in a box" envisioned by Draco President Eric Kloor. Kloor presented his idea to MacroSystem President Joerg Sprave, who developed and manufactured the product. Draco Systems is the exclusive distributor in the Americas.

As a result of the merger, Draco Systems will remain an independent, United States-based corporation and will now become known as a MacroSystem company.

"Our ties to MacroSystem have always been very close," said Kloor. "With this merger, Draco will be even more involved in product development and the exploration of strategic growth opportunities for the two entities."

The Casablanca, first introduced in 1997, revolutionized video editing by removing technological, learning and price barriers with a self-contained system the size of a VCR for less than $4,000. Now, more than 40,000 Casablancas are in use by professional videographers, video production and post-production services, educators and video enthusiasts worldwide. The Casablanca has garnered praise for its rock-solid stability and professional quality. The product's success in the Americas has propelled Draco's five-year growth to more than 5,000 percent, placing Draco among the top three Colorado technology companies in the 1999 Deloitte & Touche Fast 50 ranking, and 53rd in the United States. Draco and MacroSystem recently introduced the new Casablanca Avio, a faster, more advanced nonlinear editor that starts at $1,495, once more breaking industry cost/performance barriers.

The Casablanca Avio provides complete video editing without connections to other computer systems or peripherals. The user records video footage onto the Avio's hard drive from a camcorder or videotape deck, viewing the process on any television monitor. The user then trims the video clips to size, applies image processing effects such as slow motion or color shifts, adds transitions between scenes, creates titles and edits sound tracks, all on the hard drive. Copies of the completed video are then made directly from the Avio to any video recording device.

MacroSystem Digital Video AG is headquartered in Wetter, Germany. Draco Systems Inc, a MacroSystem company, is the pioneer of self-contained digital video editing systems. Headquartered in Boulder, Colo., Draco distributes Casablanca systems in North, Central and South America. For more information about Draco's products, visit www.draco.com

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