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VIDEOLOGIC EXPANDS ON ITS TECHNOLOGY LICENSING
Engages QED Intellectual Property Ltd to Exploit Patents
QED Signs First Licensee For VideoLogic's TV-Tuner Patents

(18 AUG 1999) VideoLogic - the international company that develops, designs and supplies market-leading 2D/3D graphics, video and audio technologies and products - has today announced the next step in the company's strategy to license its technology.

During the creation of VideoLogic's technology a substantial number of patents have been filed and granted. The company is now beginning to exploit these potentially valuable assets by appointing QED Intellectual Property Ltd - a specialist in patent licensing - initially to exploit VideoLogic's PC/TV tuner patents. It is expected that the agreement between VideoLogic and QED will be extended to other VideoLogic patents in due course

The first patents deal with the integration of a TV tuner card inside a PC, receiving and demodulating broadcast TV signals, extracting data from the signals and storing the extracted data on the PC for further processing. These patents are now available for licensing worldwide, solely from QED and are of specific relevance to manufacturers of PC/TV tuner cards and PC systems incorporating TV connection and tuning capability.

Says, Stephen Potter, commercial director, QED: "We believe that the patent portfolio is fundamental in this area and that it is already widely used in the TV tuner card market. We also believe that in the future this patent may have significant implications as the TV and PC industries converge."

QED has also announced today that TEMIC Telefunken Hochfrequenztechnik GmbH will be the first licensee for this particular patent and has signed an agreement with QED to license the patents for TV-Tuner technology developed by VideoLogic.

TEMIC is a world leader in the supply of tuners for PC/TV tuner cards. Through this license agreement TEMIC's customers will have the use of the patented technology for their PC/TV applications.

Says Hossein Yassaie, president and chief executive officer, VideoLogic: "QED's progress with the licensing of our PC/TV tuner patents shows the real strength of these patents. As a leader in multimedia innovation VideoLogic has a rich patent portfolio. It is a part of our strategy to exploit, wherever possible and at the appropriate time, our relevant patents as a further revenue source for the company."

TV tuner cards are commonly available from retail computer stores and, once installed, allow the user to watch TV on their PC whilst simultaneously using other PC applications. These 'add-on' cards retail at between $100-$200 (US). The market in the United States alone is currently worth in excess of $200m. PCs are increasingly being sold with TV tuner cards pre-installed. In addition to licensing these patents to companies who are already using the technology, QED will also be granting licenses for VideoLogic's patents to companies who wish to incorporate them in their new developments.

About QED Intellectual Property
Based in Hayes, England, QED licenses Intellectual Property to industry worldwide. Combining commercial, legal and technical expertise, it operates principally in the fast growing global markets of Multimedia and Communications. Drawing on world class expertise in electronics, optics, magnetics and microengineering, QED manages a growing portfolio of its own and clients' patents and related IPR. QED is the intellectual property management arm of Scipher plc.

About VideoLogic
VideoLogic Group plc is an international company that develops, designs and supplies market-leading 2D/3D graphics accelerator and audio products for PCs, games consoles and arcade entertainment machines. Since it was founded in 1985, the company has introduced, directly or via licensing arrangements, a succession of innovative silicon chips and add-in boards, which have played a major role in the development of multimedia and computer-based entertainment systems.

VideoLogic has its corporate headquarters in the United Kingdom and is publicly traded on the London Stock Exchange (FTSE:VDO). Product details, news, technical support and the latest software are all available on the VideoLogic web site at www.videologic.com.

Further details

For VideoLogic:
David Harold/Rebecca Miles
VideoLogic Ltd
Home Park Estate
Kings Langley
Herts WD4 8LZ
tel +44 (0)1923 260 511
fax +44 (0)1923 270 188
email dharold@videologic.com

For QED Intellectual Property:
Daniel Brod
QED Intellectual Property Ltd
Dawley Road
Hayes
Middlesex UB3 1HH
tel +44 (0)181 848 6560
fax +44 (0)181 848 6469
email dbrod@qed-ip.com

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