Nero and Polar Frog Digital Partner for On-Demand Video DVD Creation and Distribution

Relationship Makes DVD Kiosk Technology a Reality in the U.S.;
Revolutionizes Retailer and Consumer Access to Commercial DVD Content
GLENDALE, Calif. & SCOTTSDALE, Ariz.--(Business Wire)--
Nero, creators of liquid media technology, and Polar Frog Digital,
a provider of innovative on-demand video services for DVD and
downloadable solutions, today announced an exclusive U.S. agreement to
bring on-demand video DVD creation and distribution to retailers and
consumers. Together, Nero and Polar Frog Digital are extending digital
entertainment content beyond its traditional confines, enabling
on-demand DVD production for online and traditional retailers and
making the much-touted commercial DVD kiosk delivery model a reality.

"The Kiosk format and ability to manufacture commercial DVDs
on-demand brings countless benefits to retailers in terms of reduced
overhead and increased customer satisfaction," said Kurt Scherf, vice
president and principle analyst with Parks Associates. "Many have
argued that digital downloads would serve this need, but while
consumers have seen the benefits of downloads, there are still
limitations to how they can be used across devices. Today, the DVD
still offers the greatest flexibility in terms of the ability to play
it on multiple devices or share it with others. A secure on-demand
manufacturing solution, such as what Nero and Polar Frog Digital will
be offering, unlocks the potential of greater access to premium
content in a protected format."

While there has been significant industry discussion on the
importance of on-demand video DVD manufacturing, the use of
proprietary standards and file formats has inhibited the ability for
other organizations to bring a viable solution to market. Nero is able
to deliver on this new content frontier because of its commitment to
aligning and developing with industry open standards, such as those
put in place by the DVD Forum, and platform interoperability. Nero has
also led the market in the incorporation of cutting-edge features and
formats, made possible by the company's longstanding expertise in
engineering and deploying codecs, applications and services. As a
result, the partnership between Nero and Polar Frog Digital will meet
the needs of consumers by alleviating the limits and constraints of
expensive proprietary formats, special DVD players and non-standard
media.

Polar Frog Digital is the only on-demand company to offer the
ability to burn, buy, download and rent multiple medias. This is made
possible by their adoption of Nero's vision for liquid content
distribution and creation options for consumers. With the Polar Frog
solution consumers have the ability to choose where and when they want
to buy their media. Agnostic delivery options will serve to expand the
sales of media in traditional and nontraditional retail channels
alike.

"Over the last decade, Nero has enabled innovations delivered by
the world's largest consumer electronics brands," said Richard
Carriere, president, Nero Inc. "Together we are committed to liquid
content creation anytime, anywhere and on any device. The experience
of and ability to manufacture commercially released video DVDs
on-demand will revolutionize the retail industry and bring a truly
liquid media experience to consumers."

Each year thousands of movies, television programs, educational
and special-interest titles are created. However, due to shrinking
shelf space and cost of manufacturing, only a fraction will become
available on DVD, and fewer still will remain available six months
after release. By using kiosks, retailers can stock an entire physical
DVD inventory in as little as two square feet of store space. Gone are
the days of needing to anticipate how many copies of a new title
release to have on hand or worrying about DVD theft. With a kiosk
format, inventory "shrinkage" can be eliminated and retailers are able
to offer their consumers an unlimited quantity and assortment.
Retailers no longer have to fear that a consumer will leave without
purchasing a DVD because the title that they were looking for was out
of stock.

"On-demand manufacturing of commercially released DVD video
content will revolutionize both the retail marketplace and the way
that consumers experience and access video," said Todd Rosenbaum, CEO
of Polar Frog Digital. "The Polar Frog/Nero solution marks the
culmination of years of cooperation and provides not only retailers
but movie studios, consumer electronics manufacturers, and content
distributors a new means to capitalize on digitally distributed
commercial video content."

With the joint Nero/Polar Frog Digital solution, consumers will
have access to a full range of commercial video copy-protected content
with Content Scrambling System (CSS) encryption. Available in late
2008, the offering will be based on Polar Frog Digital's patented "DVD
On Demand" software and licensed library of digital movie and
television content. This library is the world's largest database of
on-demand content available at retail.

For more information about Nero and Nero products, visit
www.nero.com. For additional details on Polar Frog Digital, please
visit www.polarfrogdigital.com.

About Nero

Nero, the creator of liquid media technology, enables liquid
content creation and distribution anytime, anywhere, and on any
device. The company provides consumers with the freedom to enjoy their
audio and video content, regardless of hardware or file format, by
taking a unique platform neutral, standards-based approach to solution
development.

More than 300 million units of Nero's award-winning software
solutions are used in the home, on the go, and professionally. Nero
also provides strategic partners with applications, codecs, tools,
software development kits, and programming interfaces for use with a
variety of the latest platforms and devices. Products are available
globally through hardware manufacturers, international partners,
retailers, and directly through the Nero Online Shop at www.nero.com.
Headquartered in Karlsbad, Germany, Nero maintains regional offices
in: Karlsbad, Germany; Glendale, Calif., USA; Yokohama, Japan; and
Hangzhou, China.

About Polar Frog Digital

Polar Frog Digital (PFD), LLC is a privately held corporation
based in Scottsdale, Arizona. PFD's mission is to bring retailers the
ability to expand core inventories while keeping costs at a minimum
and raising profitability. Polar Frog Digital is a digital rack jobber
which has developed a solution to conveniently deliver commercially
released media on demand to consumers in any retail venue. The company
also provides all related services to support our turn key solution.
The solution is designed to appeal to a broad range of consumers and
their need for an agnostic On Demand video format selection anywhere,
anytime. To this end, PFD has licensed video in its original full
format. This enables the company to meet any consumer need, be it
burning, buying, renting or downloading. We accomplish this by
offering a wide variety of formats. For more information on Polar Frog
Digital, please call (888) 506-FROG or visit
http://www.polarfrogdigital.com.

McGrath/Power Public Relations
Timothy Polakowski, 408-727-0351
timp@mcgrathpower.com
or
Nero Inc.
Alex Sayyah, 818-956-5930 ext. 216
Director of Marketing--Americas
asayyah@nero.com

Copyright Business Wire 2008