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Kaleidescape Commemorates Fifth CEDIA Anniversary, Highlights Five Years of Industry, Company and Product-Related Milestones

Accomplishments Include Broader Market Reach, Increased Sales without a Single Product Return, 1,000 New Dealers, and Significant New Product Introductions

DENVER, Colorado; CEDIA Expo – September 6, 2007 – Kaleidescape, Inc., the market leader in entertainment servers, today marks its fifth year at CEDIA EXPO, the number-one event in the residential electronic systems contractor industry, by celebrating a number of significant company, product and industry-related achievements. Kaleidescape milestones include: nearly 4,000 Kaleidescape Systems comprising nearly 20,000 Kaleidescape products installed in 60 countries with zero customer returns, an average company revenue growth of 204% year-over-year, the addition of 1,000 new dealers worldwide – the top 20 of which sold $20 million of Kaleidescape products in the past 12 months and the introduction of more than 20 new products and services. These milestones were achieved while Kaleidescape waged a battle for over three years and finally prevailed in the well-publicized lawsuit brought by the DVD CCA.

In addition to celebrating its five-year milestones, Kaleidescape also announced today impressive new DVD Collections and an improved Dealer Extranet, all designed to provide Kaleidescape customers with the ultimate entertainment experience (see related releases dated today).

During the past year alone, Kaleidescape has made a number of significant product introductions, including an entry-level Kaleidescape System that has significantly expanded the company’s market reach and, for the first-time, a music-only configuration. Kaleidescape also released the 3U Server that features the most capacity ever offered by a Kaleidescape Server, a Hot Spare Disk Cartridge for unattended recovery from hard drive failure, and the new Speed Reader for rapid unattended bulk importing of DVDs and CDs.

Kaleidescape is constantly adding important new system features for its customers. With the introduction of KEAOS 3.4, all Kaleidescape owners have been provided with new music and movie features including the ability to display all music in their collections by genre, browse through classical music selections with ease, and easily add or modify album metadata through the Kaleidescape web utility. In addition, multiple artist portraits are now displayed during music playback, including featured supporting artists. Kaleidescape also now offers greater support for International films. KEAOS 3.4 was distributed via the Internet and automatically installed on existing Kaleidescape Systems.

“The last five years have been exciting for Kaleidescape, as we have focused on steadily building a reputation for providing the most engaging and exciting entertainment experience for the home,” said Michael Malcolm, founder, chairman and CEO of Kaleidescape. “Our impressive list of customers and their positive feedback tell us that we are achieving our goal of redefining consumer expectations for home entertainment.”

About Kaleidescape
The Kaleidescape System redefines home entertainment by transforming the way movies and music are collected, managed and enjoyed throughout the home. The System combines a compelling interface, outstanding industrial design, and services that set new standards in the consumer electronics industry. Kaleidescape was founded in 2001 and is privately held. The company is headquartered in Sunnyvale, California with research and development conducted by Kaleidescape Canada, Inc., based in Waterloo, Ontario. Kaleidescape products are available through a worldwide network of custom-installation dealers and distributors. For more information, contact Kaleidescape at (888) 352-5343 or (650) 625-6150, email us at sales@kaleidescape.com, or visit www.kaleidescape.com.

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