MGI Software Press Release

Tuesday September 29, 9:47 am Eastern Time

Company Press Release

Fans Get on Stage with Metallica, Rock Band Selects MGI Software for New Fan Club CD-ROM

TORONTO--(ENTERTAINMENT WIRE)--Sept. 29, 1998--MGI Software Corp.(TSE:MGI. - news) MGI Software, the company that pioneered the way consumers experience their digital photos and videos, is now changing the way music listeners interact with their favorite bands. In another first, MGI today announced that the rock band Metallica's Official Fan Club-The Metallica Club, has licensed a special version of MGI PhotoSuite for its new Fan Club CD-ROM containing music clips, photos, video clips and "other goodies". Using MGI's award-winning photography technology, fans can manipulate Metallica's photos and videos and "picture" themselves in the band's memorabilia. Imagine sending a friend a photo message with yourself pictured on tour with Metallica.

"The Metallica Club exists so that the band can keep a two-way line of communication open to the fans who have supported them over the years," said Tony Smith, Metallica's road manager and president of The Metallica Club.

"Our new Fan Club CD-ROM has been made unique by the inclusion of MGI's PhotoSuite SE and its strong and easy-to-understand image editing capabilities. It's an entertaining way for fans to reach out and touch the band as well as each other."

With more than 30,000 members and growing, The Metallica Club was established in 1993 by members of the band for the benefit of their friends and fans. The CD-ROM, "Byte The Lightning" can be purchased for US $18.50 at the Metallica Web site (www.metclub.com), and is available to members and non-members of the Metallica Club.

MGI PhotoSuite SE offers users a simple and effective method of taking still photos from videos and enables them to retouch, sharpen or soften photos, add special effects, picture frames and use the included photo art to create greeting cards, calendars, and other projects. The built-in catalog feature helps users manage all captured images, including video clips, and sound files. Photos can be e-mailed as attachments, posted on a Web page for the Internet, or printed as hard copy.

"We are excited to be working with Metallica on this promotion," said Ihor Petelycky, director product management at MGI Software. "PC photography is more than manipulating and archiving pictures. It's also about communicating with pictures. With MGI PhotoSuite SE, Metallica fans can do this and a lot more." About MGI Software

MGI Software is changing the way home and business computer owners experience photography and video. The company has quickly become a market and technology leader with its award-winning products and its relationships with leading manufacturers driving the union of computing with photography, video, and television. MGI's partners include leading firms in the photo industry, online service suppliers, and manufacturers of digital cameras, computer hardware, software, and consumer electronics. With more than 12 million copies shipped in two years, MGI's PhotoSuite and VideoWave are the leading brands in retail and OEM distribution spanning 25 countries. In 1997, Intel Corporation invested in MGI and entered into related product development and marketing agreements. MGI Software shares trade on The Toronto Stock Exchange (Symbol - MGI). For more information visit http://www.mgisoft.com.

Copyright(c) MGI Software Corp.,1998. MGI, MGI PhotoSuite, MGI VideoWave are trademarks or registered trademarks of MGI Software Corp. All other company and/or product names are trademarks and/or registered trademarks of their respective manufacturers.