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Kaleidescape Offers the Best in Family Entertainment with the Release of Two New Family-Themed DVD Collections

Mountain View, CA — May 25, 2005 —- Kaleidescape, Inc., the award-winning leader in whole-house entertainment servers, has announced two new additions to its Kaleidescape Collections: the Preschool Collection and the Family Collection. These collections offer carefully-previewed, thoughtfully-selected movies that educate and entertain the youngest members of the family and provide hours of viewing enjoyment for family members to experience together.

The new Kaleidescape Collections include:

• Preschool Collection. The Preschool Collection currently features 90 titles that promote cognitive and social development in preschool-age children. These DVDs feature stories and segments that encourage children to sing, dance, and play along with the on-screen characters, explore colors and shapes, improve their language skills, and learn valuable lessons of friendship and other relationships.

• Family Collection. The Family Collection currently includes 105 funny, adventurous, and heart-warming titles that appeal to both the young and the young-at-heart. From the non-stop action of The Incredibles to the uplifting songs in The Sound of Music, every movie in this collection can be enjoyed by the entire family.

“Our customers told us that collecting an excellent set of family movies can be a little daunting,” said Michael Malcolm, Chairman and CEO of Kaleidescape, Inc. “There are literally thousands of movies from which to choose, and it is difficult to identify and select those that are truly educational and entertaining, or that appeal to everyone in the family. These new Kaleidescape Collections allow families to spend less time researching and purchasing the right movies, and more time enjoying high-quality family entertainment.”

As part of its on-going commitment to supporting the highest standards in family entertainment, the Kaleidescape System includes password-protected parental controls that are based on the Motion Picture Association of America (MPAA) ratings. The Kaleidescape System also offers a cover art browsing interface that allows users to display and select a movie by its DVD cover art. This interface is so easy to use that very young children that cannot read are able to find, select and play their favorite movies.

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The Kaleidescape Collections include:

• Academy Award Nominees — Best Picture. The ultimate compilation of cinematic masterpieces, this collection currently includes 333 of the Best Picture Oscar nominees from 1929 — 2004.
• Academy Award Winners — Best Picture. Currently includes 69 of the Best Picture Oscar Winners from 1929 — 2003.
• The Criterion Collection Catalog. Offered as a continuing series, The Criterion Collection currently includes 250 of the most important, classic, contemporary films.
• The Superbit Series. A collection that currently includes 51 movies with superlative video and audio quality.
• Kaleidescape’s Critics 150. The 150 undisputed “best movies of all time”, compiled by cross-referencing selections made by the industry’s most respected film critics.
• Preschool Collection. 90 of the most entertaining and educational movies available today for preschool-age children.
• Family Collection. With 105 titles from which to choose, this collection includes something for everyone in the family.

These Kaleidescape Collections are available now. They may be ordered through an authorized Kaleidescape dealer or by contacting Kaleidescape Sales at 650 625-6150. The Preschool Collection’s retail price is $1,280; the Family Collection’s retail price is $2,000. For a complete listing of the movie titles currently included in each DVD Collection, visit www.kaleidescape.com/collections.

Quickly distinguished as a pioneer in convergence technology, Kaleidescape, Inc. has developed a new category of consumer electronics products and services that are transforming the way people enjoy movies at home. Designed for the discriminating home video enthusiast, the Kaleidescape System sets the standard for an easy-to-use entertainment server that enables the customer to quickly access their entire movie collection from anywhere in their home. The Kaleidescape System combines a compelling industrial design, innovative product features, and an outstanding user interface to make watching movies at home easier and more enjoyable than ever.

Kaleidescape and the Kaleidescape logo are trademarks of Kaleidescape, Inc., and may be registered in some jurisdictions. Academy Award and Oscar are trademarks of the Academy of Motion Picture Arts and Sciences. Criterion Collection is a trademark of Criterion Collection. Superbit is a trademark of Columbia TriStar Home Entertainment, Inc. These third-party trademarks may be registered in some jurisdictions.

Due to the nature of DVD availability and distribution, the movies that are included within a given Kaleidescape Collection are subject to change without notice. If a title is unavailable or backordered, Kaleidescape may make an appropriate substitution and/or adjust the price, at Kaleidescape’s sole discretion. Kaleidescape Collections will be shipped in original, sealed DVD cases. The DVDs will not be delivered pre-loaded onto Kaleidescape servers or disk cartridges.

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For more information and digital artwork, please visit Kaleidescape’s website at http://www.kaleidescape.com/news/, or contact Anna Fijewski at Kaleidescape Inc. (anna.fijewski@kaleidescape.com), or Kimberly Lancaster (klancaster@castercomm.com) or Katie Short (kshort@castercomm.com) at Caster Communications, Inc.

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