Novato, CA, (April 18, 2000) - Daikin US Comtec Laboratories, the developer of the industry-leading DVD authoring system, Scenarist, and InterActual Technologies Inc., the leading solutions provider for Internet-enabled DVDs, announced today that Daikin’s Enhanced DVD Kit (EDK) will incorporate InterActual’s next generation technology for Internet-enabled DVDs, including support for both computers and Internet-connected set-top DVD players.

"One year ago, our collaboration with Daikin led to the co-development of the industry’s first complete tool solution for enhanced/hybrid DVD software production," said Todd R. Collart, President and CEO of InterActual Technologies. "Daikin’s EDK will now be expanded with InterActual’s next generation of software and DVD-ROM tools to offer an integrated turnkey web solution for Hollywood as well as the corporate and educational markets."

Daikin’s EDK merges the very successful DVD-Video format with web applications, creating new business opportunities for DVD and Web publishers alike. Users of Daikin's renowned series of DVD tools such as Scenarist, Informer, ROM Formatter and ReelDVD can utilize the EDK to associate URLs with menu buttons and other portions of the DVD-Video. InterActual’s technology is automatically combined with DVD Video during formatting, providing a consistent playback environment that offers the broadest level of compatibility between major industry DVD playback systems on both computers and Internet-connected set-top DVD players.

"The continuation of our partnership with InterActual adds a new and unique dimension to our proven EDK technology," said Dr. Panos Nasiopoulos, Director of Marketing Communications for Daikin. "Daikin will also integrate InterActual's next generation web-connected technology into its other DVD authoring solutions such as ReelDVD, creating professional-quality solutions that will enable corporate and industrial users to enter the exciting wed-integrated DVD market."

InterActual’s Internet-connected DVD technology has been used on hundreds of DVD titles released by major Hollywood Studios including "The Matrix" from Warner Home Video, "The Mummy" from Universal Home Video, and "Austin Powers: The Spy Who Shagged Me" from New Line Home Video.  InterActual’s technology enables DVD title developers to combine the best of DVD with the flexibility and timeliness of the Internet. The millions of users who have already installed InterActual’s PCFriendly application on their PCs can today expand their DVD experience with web-based games, cross-marketing promotions, e-commerce opportunities, chat rooms and more.

EDK supports a single easy API approach ensuring compatibility between all leading DVD playback systems including DirectShow. In addition, EDK's Macromedia Director-plugin interface enables Director and Shockwave developers to enter the world of enhanced DVD-ROM applications and create entertaining content including games, hybrid Web applications, presentations, and electronic merchandising applications.

About InterActual Technologies Inc.

InterActual Technologies, Inc. (http://www.interactual.com/) is the leading provider of solutions and services that promote home theater-quality video on personal computers. InterActual brings a TV-like experience to the computer while simultaneously leveraging the primary advantages computers offer over TV: interactivity and Internet-connectivity. InterActual provides comprehensive DVD technologies and services to both the entertainment industry and corporate market for integrating high-quality video with direct links to Internet web sites, E-commerce, interactive games, and online community building. InterActual is the developer of industry standard PCFriendly^TM software that combines the best features of DVD-Video with the best features of DVD-ROM to create a superior viewing and interactive experience.

About Daikin U.S. Comtec Laboratories