KALEIDESCAPE EXPANDS PRESENCE IN EUROPE

January 12, 2006

Leading Provider of Entertainment Servers Establishes European Subsidiary; Adds Distribution on the Continent

**** ISE, BRUSSELS, BOOTH C21 ****


Mountain View, CA USA and London, UK (January 12, 2006) – Following a year of tremendous growth, Kaleidescape, Inc., the leading provider of entertainment servers, today announced the further expansion of its European presence with the formation of Kaleidescape Europe Limited – a wholly-owned subsidiary company – and new relationships with key distributors in the region.

According to the European Information Technology Observatory, the European consumer electronics market is growing dramatically, topping 54.2 billion euros in 2005 alone. To capitalize on this strong growth, Kaleidescape created a dedicated subsidiary headquartered in London. The subsidiary will act as the European headquarters for the company, providing sales and support resources for the region.

Additionally, Kaleidescape has added new distributors on the continent including Audio Video Generation in France, Image Vertriebs GmbH in Germany and Tower Systems in Italy. These companies join Kaleidescape’s current distributor in Switzerland, Genesis Technologies, and further strengthen the company’s European operations.

“The Kaleidescape System is the most exciting and significant development in the custom installation market,” explains Michael Malcolm, Kaleidescape’s founder, chairman and CEO. “Our business has grown dramatically in Europe over the past year. We’ve built an excellent European distribution network and have seen an increasing number of installations in both the residential and marine markets. By increasing our presence in the region, we expect to further accelerate our growth.”

Kaleidescape at ISE Brussels

Kaleidescape will demonstrate its latest products at the ISE Brussels exhibition (booth number C21), February 1 – 3, 2006. These products enrich the lifestyles of its owners in a way quite unlike any other single product in the marketplace. Visitors to the Kaleidescape booth can see how the system allows home and yacht owners to collect, manage and enjoy entire DVD movie collections with breathtaking ease and speed for maximum viewing enjoyment. A single Kaleidescape System is capable of storing thousands of DVD movies and providing simultaneous playback in up to 25 zones or more, depending on the system’s configuration and the movies being viewed.

About Kaleidescape, Inc.

Kaleidescape’s award-winning entertainment server delivers a completely new movie-viewing experience that’s more exciting and compelling than ever before. Based on elegant yet simple designs, Kaleidescape’s products provide the entertainment cornerstone for the home, delivering unique methods for collecting, managing and enjoying movies. Kaleidescape’s extraordinary user interface provides the easiest and most dynamic way for customers to reconnect with their treasured movie collections. And the Kaleidescape entertainment experience can be personalized for multiple audiences throughout the home.

Kaleidescape was founded in 2001 and is privately held. The company is headquartered in Mountain View, California and its products are available through an elite network of dealers and distributors throughout the world. For more information, contact Kaleidescape at 888-352-5343 or 650-625-6150, email us at sales@kaleidescape.com, or visit Kaleidescape online at www.kaleidescape.com.

-###-

Editor’s note: For more information on the Kaleidescape System, visit Kaleidescape at the ISE Brussels exhibition (booth number C21) or go to www.kaleidescape.com. To view the company’s photo library and download images of the Kaleidescape System, please visit: www.kaleidescape.com/news/press-kit/

Kaleidescape and the Kaleidescape logo are trademarks of Kaleidescape, Inc., and may be registered trademarks in some jurisdictions

Posted In: Press Releases