1. Macrovision Corp. November 18, 2004 David Mizell Mary Voss Wei Wang

2. Recommendation: Hold For the nine months ended 9/30/04 (third quarter of this year), revenues rose 38% to $122.5 million. Net income rose 10% to $20.9 million. Higher R&D is a signal for future revenue increase. Bought 200 shares at $75 on 3-Apr-2000 Current price $ 26.23, The total loss is -$ 9,754.00 which representing a -65.03 % total return and annual return of -20.31 %

3. Company Overview Delaware corporation founded in 1983 - Started in video copy protection - Still a leading revenue generator Develops copy protection technology, electronic licensing technology and rights management technology License driven business model - Generates recurring revenues by licensing the use of its patented technologies its patented technologies

4. Customers Customers include: - major Hollywood studios and independent video producers - hardware and software vendors - music labels - consumer electronic - PC and digital set-top box manufacturers - digital pay-per-view (“PPV”) and video-on-demand (“VOD”) network operators network operators Largest Customer: The Motion Picture Association of America (“MPAA”) studios - use the video copy protection technology to protect movie releases on videocassette or DVD - revenues from MPAA were 42.6 in 2003 and 43.2 million in 2002 Revenues from MPAA accounted for 36% of total revenues in 2003 and 42.2% of total revenues in 2002

5. Financial Performance Total revenues were: - $128,346,000 in 2003 - $102,262,000 in 2002 - $98,813,000 in 2001 - $98,813,000 in 2001 Basic net earnings per share: Basic net earnings per share: - $0.61 in 2003 - $0.24 in 2002 - $0.38 in 2001

6. Financial Performance Research and development expenses were $17.2 million, $11.9 million and $9.3 million in 2003, 2002 and 2001 respectively. Third Quarter of 2004 earnings were $.03, due to one- time and noncash charges For the nine months ended 9/30/04: For the nine months ended 9/30/04: - revenues rose 38% to $122.5 million - net income rose 10% to $20.9 million - earning were $.21, $.18, and $.03 - higher in-process R&D charges

7. Macrovision’s Numbers Market Cap is 1.30B P/E (ttm) is 41.63 EPS (ttm) is.63 Revenue (ttm) is 162.38M Operating Margin (ttm) is 29.55% Profit Margin (ttm) is 19.48% Beta is 3.35

8. Stock Price Over Time

9. Financial Analysis P/E Approach Returns a price of $31.09 Returns a price of $31.09DCF Returns a price of $22.04 Returns a price of $22.04 View Spreadsheet

10. Macrovision vs. NASDAQ

11. Competitors Digimarc Corp - communicating copyrights - enabling online licensing - audio digital watermarking in copy prevention to protect music and movies Microsoft - in 2003, Microsoft announced the release of its WMDST to compete in music technology - in 2003, Microsoft announced the release of its WMDST to compete in music technology - independent of Macrovision’s solutions

12. Macrovision vs. Competitors

13. Porter’s Five Forces Threat of New Entrants: High Threat of Substitutes: Low Bargaining Power of Buyer: Low Industry Rivalry: Low Bargaining Power of Suppliers: Moderate - Job market picking up

14. Macroeconomic Review Internet Piracy Issues RIAA Lawsuits RIAA Lawsuits Costs music industry over $300 million annually Since 1998, 5 lawsuits filed against largest individual file sharers, hundreds convicted New International Initiatives MPAA Anti-DVD Piracy Initiatives MPAA Anti-DVD Piracy Initiatives CSS Encryption, and the DeCSS Hack Digital Millennium Copyright Act Lawsuits against individual movie file sharers to start 11/16/04

15. Company and Business Basics Of the 2003 Revenue of $128 million: 54% from from DVD/VHS protection 54% from from DVD/VHS protection 29% from enterprise software 29% from enterprise software 9% from PPV protection technologies 9% from PPV protection technologies 4% from music protection 4% from music protection 4% from gaming protection software 4% from gaming protection software

16. Company and Business Basics Video Technology Solutions Analog Copy Protection (ACP) to prevent analog recording Analog Copy Protection (ACP) to prevent analog recording RipGuard to prevent DVD “Ripping” RipGuard to prevent DVD “Ripping” Hawkeye P2P Anti-Piracy Software Hawkeye P2P Anti-Piracy Software Used by MPAA to prevent illegal downloading Protected over 8 billion DVD’s and VHS cassettes Protected over 8 billion DVD’s and VHS cassettes Have technology imbedded in over 300 million DVD devices Have technology imbedded in over 300 million DVD devices

17. Company and Business Basics Music Technology Solutions CDS technology CDS technology Allows user to copy music for use on other devices but prevents copying files to hard drive CDS has been used on over 400 million music CD’s worldwide since 2002 Hawkeye P2P Anti-Piracy Service Hawkeye P2P Anti-Piracy Service Used by RIAA to prevent illegal downloading

18. Company and Business Basics PPV Technology Solutions Protects against descrambler and other electronic theft devices Protects against descrambler and other electronic theft devices 117 million digital boxes protected 9 international cable and satellite operators activated copyright protection in 2003 In 2004, VOD protection technology will be activated in U.S.

19. Company and Business Basics PC Games Technology Solutions SafeDisc Advanced Copy Protection and Hack Protection SafeDisc Advanced Copy Protection and Hack Protection Enables software publishers to protect, distribute and promote their products securely and effectively Helps to longer periods without hacks after retail debut SafeDisc utilized on 80% of the top 20 selling games in the U.S. over the past 4 years SafeDisc utilized on 80% of the top 20 selling games in the U.S. over the past 4 years 200 million total disks protected

20. Company and Business Basics Software Technology Solutions FLEXnet universal licensing platform FLEXnet universal licensing platform InstallShield installation program InstallShield installation program Update Service Update Service Installed on over 500 million desktops worldwide Installed on over 500 million desktops worldwide Used by 50,000 software publishers and hundreds of Fortune 1000 companies Used by 50,000 software publishers and hundreds of Fortune 1000 companies

21. Company Updates 82% of revenue comes from DVD/VHS protection technologies and enterprise software technology solutions Workforce grew 20% to 349 employees in 2003 Recently reorganized into two divisions Entertainment Technology Group Entertainment Technology Group Music, Video, PPV and PC gaming Software Technologies Group Software Technologies Group Consumer and enterprise software Internal and external expansion

22. Summary Recommendation: Hold 200 shares We believe Macrovision will be gaining new market share because their industry is growing. They are strategically placed to take advantage of this growth. Questions?