Nero’s Major Update to Nero 7 Software Suite Supports the Complete Digital Lifestyle

Free online update transforms mobile phones into media centers
and provides cutting-edge A/V features

Karlsbad, Germany (September 1, 2006) – Nero,
leaders in digital media technology, unveiled details today of a major worldwide
update to its premier Nero 7 digital media software suite. This latest version
includes more than 21 applications, with features that enable the efficient
transfer of audio and video files to mobile phones and the streaming of live TV
and other content to a Windows® Media Center Edition PC or Xbox 360™. The update
will be available at retail stores and online (www.nero.com) in September 2006.
Current Nero 7 customers will be able to download the update from the website
free of charge at that time.

Nero 7 is the industry-leading all-in-one solution for the management of
data, audio, video, photo, and TV content. In addition to easily managing their
digital files from the comfort of their living rooms, users can now create
compelling entertainment experiences that can be enjoyed outside of the
house.

‘Nero leads consumers in the transition from the digital home to the total
digital lifestyle,” said Jim Corbett, Executive Director, Nero AG. ‘Adding the
elements of mobile entertainment compatibility and management, as well as
Windows MCE plug-ins for media streaming and audio, video, and data burning
underlines Nero’s unique position in being able to drive convergence. With each
offering, we provide consumers unprecedented levels of sophistication and
control over their entertainment experiences.”

An integrated TV server within the Nero MediaHome application allows users to
stream live TV to an Xbox 360™ gaming system for playback via a Windows® Media
Center Edition PC. Other intriguing video features include the ability to record
TV programs, encode non-copy protected video files to the popular iPod® and
PlayStation® Portable devices, record video directly onto a hard drive, and
playback commercial DVDs on a PC or TV.

New audio capabilities include
full MP3/mp3PRO encoding support, the ability to mix and edit music from
multiple audio tracks, and sophisticated editing and mixing functionalities for
HQ mastering.

Consumers can now take advantage of the unprecedented capacity of Blu-ray and
HD DVD Discs for data recording. Both formats can also be integrated for data
backup, packet writing, and toolkit applications.

Ensuring audiophile quality, Nero 7 enables the recording and playback of
surround sound audio files. Users can also capture video files from many
sources, including certified TV cards, graphics cards, camcorders, VCRs, and
webcams (composite/S-video).

DVD presentations come to life with Nero 7’s customizable 3D menus.
Compelling introductory video and transitions between menus and video clips are
easily produced with two easy-to-use templates.

About Nero

Nero (www.nero.com) develops and distributes the world’s leading
digital media solutions for consumers and professionals. Today more than 200
million users worldwide rely on Nero’s award-winning and trusted, industry
approved applications to manage the needs of the connected digital home and
forward-thinking corporations.

Nero’s rapidly-growing portfolio of products defines new levels
of innovation in the company’s three key areas of focus: Digital Media
Solutions – delivering multimedia applications for audio, video, photo
and TV capturing, editing, burning, managing and sharing; Audio and
Video Compression Technologies – providing world-class interoperable
standards-based solutions for encoding and decoding digital content with support
for Next Generation HD and popular handheld formats; and VoIP
Solutions – providing cost-effective voice, text and video
communication over the Internet for home and business.

Nero products are globally distributed by leading hardware
manufacturers, international distribution partners and online portals, and can
be purchased directly at www.nero.com.

Nero provides worldwide coverage through Nero AG Headquarters
based in Karlsbad, Germany and three Sales Offices worldwide: EMEA in Karlsbad,
Germany, Americas in Glendale, California, USA, and APAC in Yokohama,
Japan.