ArcSoft and HD DVD Promotion Group Demonstrate Playback Technology

ArcSoft, Inc. is demonstrating ArcSoft Digital Theatre(TM) 2 this
week at IFA 2007 in conjunction with the HD DVD Promotion Group.
Digital Theatre is a high definition video player that supports
playback of HD DVDs, commercial and homemade DVDs, and a variety of
high definition multimedia files. The HD DVD Promotion Group is
showcasing Digital Theatre as part of its advancement of
standards-based implementations of HD DVD playback.

"We are excited to be presenting our high definition solutions at
IFA," said Michael Downs, ArcSoft Vice President of Marketing and
Business Development. "We have been working closely with the HD DVD
Promotion Group, leading graphics chipset companies, and the major
Hollywood studios to ensure that we can provide complete, high
performance, high quality HD DVD functionality."

Digital Theatre's HD DVD playback functionality includes complete
support for high definition interactive content such as U-Control.
Additionally, Digital Theatre supports next generation audio formats
such as Dolby Digital and DTS, as well as a variety of advanced trick
play features such as Smart Stretch and Time Stretch. Available for
Windows XP and Windows Vista, the program also includes a Windows
Media Center Edition plug-in that provides a 10-foot user experience.

Digital Theatre is available as a standalone application or as
part of ArcSoft TotalMedia(TM) Extreme, a software suite that provides
solutions for playback, capture, editing, and authoring of standard
and high definition content. For more details, please visit
www.arcsoft.com/products/digitaltheatre.

About ArcSoft

ArcSoft, Inc. is an industry leading software developer of
multimedia technologies and applications across desktop and embedded
platforms. Working closely with major OEM manufacturers, ArcSoft
offers a full line of imaging and video solutions that enhance the
features, performance, and user experience of mobile phones, digital
cameras, optical drives, personal computers, and consumer electronics
devices. For further details, visit www.arcsoft.com.

About HD DVD Promotion Group

Established in December 2004, the HD DVD Promotion Group is a
voluntary organization dedicated to promoting development and assuring
the early impact and long-term success of products and contents based
on the new HD DVD formats. Membership in the Group is open to any
company or organization that is engaged, or will engage, in the
development and/or manufacture of any HD DVD content or hardware
products. The group has more than 140 member companies. For more
information, please visit www.hddvdprg.com.

Copyright (C) 2007. All rights reserved. ArcSoft and the ArcSoft
logo are registered trademarks of ArcSoft, Inc. ArcSoft Digital
Theatre and ArcSoft TotalMedia are trademarks of ArcSoft, Inc. All
other products and companies named herein may be trademarks of their
respective owners.