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C-Cube Joins Planetweb® to Drive New iDVD(TM) Internet Appliance Category

At CES 2000, Planetweb and C-Cube Announce Shared Vision

Las Vegas, Nevada - January 7, 2000 - Planetweb, Inc., today announced that C-Cube Microsystems has joined Planetweb, Inc., a leader in the Internet appliance software market, as a partner to help drive the new iDVD Internet appliance category.

iDVD players will enable consumers to watch DVD movies, play audio CD's and utilize the Internet to enhance their entertainment experience, surf, e-mail and shop. Over time, iDVD players will be able to serve relevant and timely information to consumers based on their viewing and listening habits and allow them to customize personal web pages they can view right on their televisions.

"We are excited that C-Cube has joined us in our mission to use the Internet to bring enhanced features to the consumer electronics world. DVDs represent a category where the Internet can provide important features unavailable to consumers before," said Jan Gullett, CEO and President of Planetweb. "With our digital software technology which makes the Internet look great on TV, we can drive the adoption and convergence in the iDVD category."

"We see that providing a low-cost Internet capability with a small memory footprint on consumer appliances like iDVD players will become a standard function in consumer products over the next five years, especially in countries like China where there is a small installed base of personal computers," said Patrick Henry, C-Cube's Vice President of Marketing and System Solutions, Home Media Systems.

C-Cube recently announced plans to market Internet-ready digital video home entertainment products using Planetweb's internet software web engine in mid-2000. Using the C-Cube and Planetweb solution, manufacturers will be able to design iDVD players, DVD/Optical recorders, DVR's (Digital Video Recorders) and digital set-top boxes with Internet capabilities.

Additional iDVD Category Partners

Planetweb has also partnered with InterActual Technologies, the developer of PCFriendly(TM) software, which integrates DVD-Video and DVD-Audio with DVD-ROM capabilities. The partnership will enable DVDs enhanced with next-generation PCFriendly software to be viewed on Planetweb powered iDVD players. PCFriendly DVDs currently offer enhanced features to computer users with DVD-ROM drives, such as web-based events, E-commerce, interactive games, and other advanced, interactive features. There are already many DVDs on the market with PCFriendly(TM) content including several hit movies. In 2000, it is estimated that over 500 DVDs will include InterActual PCFriendly software.

iDVD category content partners include DVD Express, Netflix and Infospace.com who will all provide additional relevant content directly to consumers through Planetweb's iDVD portal services.

"The exciting new iDVD category will expand the interactive audience from the computer room or office into the family room." says Todd Collart, President and CEO of InterActual Technologies, Inc. "This will certainly increase the adoption rate of enhanced, web-based content on DVD Videos, as well as audio CDs in the near future."

About C-Cube

C-Cube Microsystems Inc. is the industry leader in the development and delivery of highly integrated digital video silicon and systems solutions. C-Cube's Semiconductor Division delivers digital video silicon and systems solutions for the communications and consumer electronics markets. C-Cube's DiviCom Division is a leader in the deployment of digital video networks. C-Cube is headquartered in Milpitas, California with offices in North America, Europe, and Asia. Its stock is traded on the Nasdaq under the symbol CUBE. C-Cube can be reached at +1.408.490.8000 or at http://www.c-cube.com/. C-Cube's DiviCom Division is based in Milipitas, Calif. And can be reached at +1.408.944.6700 or at http://www.divi.com/.

About Planetweb, Inc.

Planetweb is the industry volume leading producer of Internet software designed for consumer electronics devices. The company creates an enhanced Internet experience through consumer devices like game systems, iDVD players, set-top boxes and phones. Planetweb is recognized for its cost effective and efficiently designed Internet software solution, superior display technology, Java multimedia technology, consumer-intuitive interfaces and powerful portal infrastructure. Planetweb, a pre-IPO Internet software company, is headquartered in Mountain View, Calif., and has offices in Tokyo, Japan. Planetweb is available on the Internet at www.planetweb.com.

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The Planetweb Browser is a registered trademark of Planetweb, Inc.; patented Magnifier (U.S. Patent 5,754,348). All other trade names referenced are the service marks, trademarks or registered trademarks of their respective companies.