Avid Acquires NXN

Avid Technology, Inc. (NASDAQ: AVID) today announced that it hasacquired Munich-based NXN Software AG—a leading provider of assetand production management systems specifically targeted for theentertainment and computer graphics industries—in a cashtransaction valued at approximately EUR35 million.

The acquisition expands Avid's leadership in digital assetmanagement by enabling the company's film and video postproduction,broadcast, and 3D animation customers to leverage the revolutionaryworkflow capabilities of the acclaimed NXN alienbrain product line.

"Professional content creators continue to look for ways to simplifythe extremely complex process of managing large volumes of digitalassets, and NXN's ground-breaking software has rapidly become the mediamanagement tool of choice for leading content creation companies,including Sony Pictures Imageworks, China Central Television, andElectronic Arts," said David Krall, Avid's president and chiefexecutive officer. "Alienbrain systems will enhance the asset andproduction management features of Avid's industry-leading contentcreation tools, making it easy for customers to track, store, andcontrol virtually every version and type of file in a digital project.As we integrate this powerful technology, we look forward to extendingour reach in the increasingly important digital asset managementmarket, while continuing to serve the thousands of NXN customerscurrently using alienbrain systems."

Gregor vom Scheidt, founder and CEO of NXN, who will be staying onas a managing director for Avid, commented, "There is tremendoussynergy between Avid's 'make, manage, and move media' strategy andNXN's core philosophy of enabling customers to manage and track all ofthe media assets they create. We're extremely pleased to join aworld-class company like Avid, which will now be able to deliver themost comprehensive digital asset management systems on the market.Whether working on film, video, broadcast news, or 3D animationprojects, customers using alienbrain software will always know thatthey are working with the most current files, and can forget aboutaccidentally overwriting or losing valuable project data."

NXN's market-leading products—NXN alienbrain VFX, NXNalienbrain Studio, and NXN alienbrain Engineer—extend Avid'scurrent media asset management offerings with revolutionarycapabilities that include infrastructure, configuration, project, andworkflow management, as well as complete version control. Designed towork with any file format associated with 3D models, textures, video,audio, source code and office documents, NXN systems enable users tomanage assets easily throughout all phases of a digital project. A widerange of 3D, graphics, source code, and administrative applicationssupport the alienbrain product family directly in the application menu,including Softimage|XSI, Alias Maya, Alias StudioTools, Discreet 3dsMax, Adobe Photoshop, and Metrowerks CodeWarrior, as well as MicrosoftPowerPoint, Excel, Word, Windows Explorer, and Visual Studio.

For more information, please visit the Investors page under theCompany menu at www.avid.com.

About Avid Technology, Inc.
Avid Technology, Inc. is the world leader in digital nonlinear mediacreation, management, and distribution solutions, enabling film, video,audio, animation, games, and broadcast news professionals to work moreefficiently, productively, and creatively. For more information aboutthe company's Oscar, Grammy, and Emmy award-winning products andservices, please visit www.avid.com.

About NXN Software AG
NXN Software AG (www.nxn-software.com) is aleading supplier of asset management systems for the digitalentertainment and computer graphics industries. NXN products providedesigners, programmers, and project managers with a powerful frameworkto manage all assets throughout the development process. Companiesusing NXN software include many of the world's most renownedentertainment studios, such as Sony, Electronic Arts, LucasArts, andAtari. NXN has offices in Los Angeles, Paris, London, Munich, andTokyo.