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MOUNTAIN VIEW, CA - March 29, 2007 - Kaleidescape Inc. is pleased to announce that today, after a seven-day trial, Judge Leslie C. Nichols of the Santa Clara Superior Court ruled that Kaleidescape is in full compliance with the DVD Copy Control Association's license to the Content Scramble System, the method used to encrypt video and audio data on DVDs. As part of his statement of decision, Judge Nichols noted Kaleidescape's good faith in its efforts to ensure that its products were fully compliant.

"Kaleidescape has been operating in the shadow of the DVD CCA's allegations for over three years. We are gratified that after hearing all of the evidence, the Judge has completely vindicated our position," said Michael Malcolm, founder, chairman and CEO of Kaleidescape.

See also: Legal Update