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Nero Integrates Video Content Protection System from Philips and HP for Nero Digital recordings

Nero-based Digital Video Solutions Incorporate Innovative Video Content Protection System (VCPS) for Safe Recording

LAS VEGAS (January 5th, 2005) — Nero, leaders in digital media technology, has announced that VCPS from Royal Philips Electronics and HP will become fully integrated in Nero Digital’s offering to allow for the protection of content.

Jointly developed by Philips and HP, VCPS is an innovative technology for encrypting video recordings on DVD+R/+RW discs. Designed to make protected recordings on DVD+R/+RW discs of digital broadcast according to the Broadcast Flag rules adopted by the United States Federal Communications Commission (FCC), VCPS also enables direct digital recording of ‘copy-once’ content from satellite and cable sources.

Nero Digital is the world’s leading MPEG-4 solution. With outstanding video and audio quality, Nero Digital is at the centre of Nero’s strategy for content creation, delivery, and protection. Now featuring cutting edge AVC/H.264 video encoding, and HE-AAC audio, future Nero applications will be able to record High Definition video content with surround sound on DVD. The addition of VCPS to Nero Digital provides the required level of security against unauthorized re-distribution.

Nero Digital is already today finding strong acceptance in the hardware sector with several vendors supporting the format and many more player/recorder announcements coming up at CES 2005. Nero Digital with VCPS is expected to be introduced in devices from Q3/2005 onwards.

Nero has sold over 160 million copies worldwide and has established itself as a leading worldwide supplier in PC-Software for recording, audio and video. Now Nero Digital will pave the way to a fully integrated solution for CE and PC.

“Content protection is essential in any electronic content distribution system to safeguard a healthy business model”, says Richard Lesser, CEO of Nero AG. “With VCPS, Nero Digital becomes suitable for digital content delivery”.

“Adding VCPS to the Nero Digital offering unlocks interesting new applications with DVD+R/+RW”, says Menno Treffers, Project Manager VCPS, Philips. “With new video coding technologies like AVC/H.264, High Definition quality on DVD+R/+RW becomes reality. VCPS provides for the right level of security to enable commercial High Definition video applications”.

“VCPS provides a great entertainment experience that automatically adheres to new recording rules for the consumer, but remains completely transparent to the viewer,” said Adam Petruszka, director of strategic initiatives, HP. “We are happy to see that the solution we jointly developed with Philips will be available soon to the many users of Nero Digital media offerings.”

About Nero
On the global digital media market Nero offers the most reliable CD/DVD-software applications in the entire industrial segment. Since the company was founded in 1995 its leading product, Nero, has established a loyal clientele of more than 160 million users throughout the world.

Nero’s award-winning flagship product, Nero 6, provides an all-in-one comprehensive digital media solution. Nero’s product line also includes Nero Digital — audio/video technology, the new Nero PhotoShow Elite — the easy and complete photo solution, SIPPS — VoIP, and across — professional computer aided translation software. Nero distributes its products globally through the world’s leading drive manufacturers and PC manufacturers, as well as leading worldwide retailers, online partners, and also directly to consumers at www.nero.com. Nero AG is headquartered in Karlsbad, Germany, with its subsidiaries Nero Inc. located in Glendale, California, USA and Nero K.K. located in Yokohama, Japan.

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Nero is a registered trademark, InCD is a trademark of Nero AG. Any other product names are trademarks or registered trademarks of their respective owners. © 2004 Nero. All rights reserved

Press contact:
Nero AG
Jenny Menhart
Marketing Manager
Tel.: +49 (0) 7248 911-802
Fax: +49 (0) 7248 911-889
E-mail: jmenhart@nero.com

US Press Contact:
Steve Massinello
Giles Communications LLC
914-798-7127
smassinello@giles.com

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