Press Release

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Rae Morrow
Wall Street Communications
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E-mail: rae@wallstreetcom.tv

Anchor Bay Teams With ADI to Distribute DVDO® iScanT VP20 and VP50 Video Processing Systems

LOS GATOS, Calif. - July 10, 2007 - Anchor Bay today announced that ADI, a leading global wholesale distributor of security and low voltage products, will distribute Anchor Bay’s DVDO® iScan™ video processors to installers and contractors throughout North America.

ADI will distribute Anchor Bay’s VP20 and VP50 video processing systems, along with the VS4, an OEM product that provides a four-to-one HDMI switcher. Anchor Bay’s DVDO iScan high-definition video processors scale and deinterlace any standard-definition and high-definition video signal from sources, such as DVD players, to perfectly match the optimum formats (up to 1080p) of high-resolution displays.

About Anchor Bay Technologies, Inc.

Anchor Bay designs and manufactures advanced digital semiconductor and system-level solutions for next-generation digital television and high-definition digital video products. The company's proprietary Video Reference Series™ (VRS™) technologies allow Anchor Bay to offer a wide range of advanced video-processing solutions that greatly improve image quality on large-screen HDTV home theater systems and other video displays. The company's VRS Precision Video Scaling™, Precision Deinterlacing™, Progressive Re-Processing™ (PReP™), RightRate™, AutoCUE-C™, and Precision AV LipSync™ technologies are used in both Anchor Bay's semiconductor products and in its award-winning DVDO® iScan™ line of video-processing systems for end users.

"At ADI, we're taking advantage of the expanding home theater market and its inherent need for high-performance video processing equipment," said RJ Hirshkind, senior product manager for residential and commercial A/V at ADI. "Our relationship with Anchor Bay helps to ensure our dealers remain on the cutting edge of video processing technology, and raise the standard of excellence in home theater."

The VP20 features Anchor Bay's Video Reference SeriesT (VRST) 10-bit Precision Video Scaling IIT technology that independently scales an image horizontally and vertically to achieve outstanding picture quality for today's high-resolution video displays.

The VP50 features all the processing power of Anchor Bay's VRS technologies, including Precision DeinterlacingT, which provides five-field motion adaptive and edge adaptive processing for an artifact-free viewing experience; and Progressive Re-ProcessingT (PRePT) technology, a breakthrough processing method that reverts the progressive video signal output from source equipment to its original interlaced format, and then converts the interlaced signal to progressive format using Precision Deinterlacing.

"One of our primary goals as a company is to continue reaching out to more installers throughout the country, while also raising awareness of the video processing market," said Doug Fealtman, vice president general manager at Anchor Bay. "This relationship with ADI allows us to expand our distribution channel to reach more installers and contractors in North America, while providing customers with superb video-processing technologies."

For more information about Anchor Bay's VP20, VP50, and suite of VRS technologies, please visit http://www.anchorbaytech.com.

The company is dedicated to providing leading-edge video technologies that will enable current and next-generation ICs and systems to deliver reference-quality images across a wide range of displays and sources. Privately held, Anchor Bay maintains its headquarters in Campbell, Calif.