Media 100 to Dominate Streaming Media Market With Unique Suite of Streaming Media Applications

MARLBORO, Mass.--(May 9, 2000)--Media 100 Inc. announced it has completed the merger with Digital Origin, Inc., a developer of application software for acquiring and editing digital video (DV) on personal computers for streaming on the Internet.

By coupling Digital Origin's applications, such as EditDV and IntroDV, with its own industry-standard streaming media applications, such as Media Cleaner, Media 100 is delivering a unique, tightly-integrated streaming media application suite. This complete workflow serves individuals, Internet broadcasters and eTailers developing next-generation streaming media web sites and dynamic Internet experiences.

Media 100 is the only company delivering a streaming media application suite that addresses the entire streaming media production process -- from acquiring video from hot new DV camcorders, to editing, creating titles and effects, to compressing and streaming high-quality video on the Web. Media 100 is enabling anyone with a personal computer and an Internet connection to broadcast their video on the Internet.

The companies announced their intention to merge on December 28, 1999 and, with this announcement, confirm the successful completion of the merger with shareholder approval. Under the terms of the merger agreement, Media 100 issued 0.5347 shares of common stock for each share of Digital Origin common stock.

The merger was completed as a pooling of interests for accounting purposes, and is a tax-free transaction. Media 100 will operate Digital Origin as a wholly-owned subsidiary headquartered in Mountain View, California, and expects results of the acquisition to be accretive within the first year of combined operations. The combined company now has approximately 100 employees in its Silicon Valley hub, and an installed base in excess of 200,000 users.

"Bringing this merger to such a rapid and successful close was paramount to our streaming strategy for 2000 and beyond," John Molinari, chief executive officer of Media 100. "The integration of Digital Origin technology and core competencies into Media 100 creates a ripple-effect across all of our products, enabling us to immediately deliver streaming media solutions unrivalled in sophistication and innovation to an even broader customer base."

"Combining Digital Origin's DV expertise with Media 100's streaming media leadership firmly positions us as the world's first company to offer an integrated streaming media application suite to all segments of the market," added Mark Housley, president and chief operating officer of Media 100. "The combined company will target Internet desktops with low-cost applications that allow personal computer users to capture, edit, and stream video on the Internet using a single, integrated, and easy-to-use application."

About Digital Origin

Based in Mountain View, CA, Digital Origin was founded in 1986; its products include leading-edge digital video software solutions that are available through worldwide authorized resellers, system integrators, and distributors and directly via the Internet. For more information visit www.digitalorigin.com. "Digital Origin," "EditDV," "RotoDV," "MotoDV," "IntroDV," and "PhotoDV" are trademarks of Digital Origin, Inc.

About Media 100

Media 100 Inc., the pioneer of Streaming Media production tools for the Internet develops software and systems that simplify the creation and delivery of video on the Internet, DVD and CD-ROM. Media 100 provides the market's most comprehensive suite of streaming media solutions -- ranging from video/audio acquisition and editing to dynamic media compression, from MPEG-2 encoding to real-time transcoding - and is the only company in the world that supports all three major streaming media formats; Real Systems G2, Windows Media, and QuickTime 4.

With recent acquisitions of industry innovators Terran Interactive and Wired, the Media 100 Companies are well positioned to dominate the streaming media marketplace. Through Terran, Media 100 now offers powerful and easy-to-use solutions that optimize and compress dynamic media via the Web, broadband network, CD-ROM and DVD. Media Cleaner Pro, Terran's flagship product, is recognized as the industry standard for compressing digital media. Through Wired, Inc., Media 100 provides top-of-the-line MPEG encoding and decoding technology for Macintosh, Windows and Windows NT platforms. These solutions - combined with Media 100's own award-winning iFinish and Media 100 family of streaming media production tools - enable a new breed of content developers to produce and deliver high-quality audio and video over the Internet.

Based in Marlboro, MA, Media 100 currently boasts over 27,000 systems installed in more than 50 countries worldwide - and provides the streaming media solutions for such dot-com leaders as ABCNews.com, Warner Brothers Online, Universal Studios Online and Excite@Home. Media 100's digital video systems are used in a wide array of industries for the creation of programs for broadcast and cable television, education, corporate training, animation, CD-ROM, DVD-ROM and streaming media for the Internet. For more information, visit www.media100.com.

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