Net income for the second quarter of 2003 was $4.6 million or 30% lower than the $6.6 million recorded in the second quarter a year ago, due to impairment losses on our private company investments. Diluted earnings per share for the quarter were $0.09, or 31% lower than the comparable earnings per share of $0.13 in the second quarter a year ago.

Cash and cash equivalents, short-term investments and long-term marketable securities were $246.5 million as of June 30, 2003.

"We are pleased with our second quarter results," said Ian Halifax, CFO at Macrovision. "Our revenues benefited from another strong quarter for our DVD business, and continued momentum in our software segments. The second quarter was important to us for a number of reasons, notably the announcement of our strategic relationship with Microsoft for combining copy protection and digital rights management (DRM) solutions for music CDs, the completion of our purchase of TTR's copy protection and DRM assets, and further significant additions to the customer base in both our enterprise and consumer software businesses. We remain comfortable with the 2003 earnings guidance we gave during our January 21, 2003 conference call. Revenues for the third quarter of 2003 are estimated to be in the $27M-$29M range, with pro forma EPS of $0.15-$0.16; for the full year 2003, we anticipate revenues of $118M-$120M, with pro forma EPS of $0.74-$0.76, reflecting the impact of our strong first half performance. We estimate GAAP EPS (including amortization of intangibles from acquisitions, deferred stock-based compensation and gains and impairment losses on investments, but not including any future investment gains or impairment losses or effects of any future acquisitions) to be $0.12-$0.13 for the third quarter of 2003 and $0.57-$0.59 for the full year 2003."

The Company continues to use pro forma reconciliation of condensed consolidated statements of income in the presentation of financial results and earnings guidance. Management believes that this presentation may be more meaningful in analyzing the results of operations and income generation, as non-cash, non-operating or non-recurring items (such as amortization of intangibles from acquisitions, amortization of deferred stock-based compensation, gains and impairment losses on investments, in-process research and development write-off and restructuring charges) are excluded from the pro forma earnings calculation. This presentation may be considered more indicative of our ongoing operational performance. The tables below present the differences between pro forma earnings and net income on an absolute and per share basis.

Immediately following the Q2 earnings release, Macrovision will hold an investor conference call on July 28, from 2:00 p.m. to 3:00 p.m. PDT (5:00 p.m. to 6:00 p.m. EDT). Investors and analysts interested in participating in the conference are welcome to call 800-218-0204 (or international +1 303-262-2171) and reference the Macrovision call.

The conference call can also be accessed via live Webcast at www.macrovision.com or www.companyboardroom.com (orwww.streetevents.com for subscribers) on July 28, 2003 at 2:00 p.m. PDT (5:00 p.m. EDT). Approximately 1-2 hours after the live Webcast ends, the on-demand Webcast of Macrovision's guidance conference call can be accessed until August 4, 2003.

Investors and analysts interested in listening to a recorded replay of the conference are welcome to call 800-405-2236 (or international +1 303-590-3000) and enter passcode 545250#. Access to the replay is available through July 29, 2003. The conference call script will be posted on the Company's website approximately 48 hours following the call and will be posted for 30 days.

About Macrovision

Macrovision develops and markets digital rights management ("DRM"), copy protection, and electronic license management ("ELM") technologies for the consumer software, enterprise software, home video and music industries. Macrovision holds a total of 134 issued or pending United States patents and 915 issued or pending international patents, and continues to increase its patent portfolio with new and innovative technologies in related fields. Macrovision has its corporate headquarters in Santa Clara, California, with international offices in London, Frankfurt, Tel Aviv, Tokyo, Hong Kong, Taipei and Seoul.

All statements contained herein, including the quotations attributed to Mr. Halifax, as well as oral statements that may be made by the Company or by officers, directors or employees of the Company acting on the Company's behalf, that are not statements of historical fact, including statements that use the words "will," "believes," "anticipates," "estimates," "expects," "intends" or "looking to the future" or similar words that describe the Company's or its management's future plans, objectives, or goals, are "forward-looking statements" and are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the business strategies and product plans of the Company and the features and benefits of the products of the Company.

Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to be materially different from the historical results and/or from any future results or outcomes expressed or implied by such forward-looking statements. Among the important factors that could cause results to differ materially are the following: the failure of markets for home video, audio CDs, consumer software or enterprise software, or markets for the technological protection of copyrighted materials contained in such products, to develop or expand, or the failure of the Company's products to achieve or sustain market acceptance or to meet, or continue to meet, the changing demands of content or software providers. Other factors include those outlined in the Company's Annual Report on Form 10-K for 2002, its Quarterly Reports on Form 10-Q, and such other documents as are filed with the Securities and Exchange Commission from time to time. These factors may not constitute all factors that could cause actual results to differ materially from those discussed in any forward-looking statement. The Company operates in a continually changing business environment and new factors emerge from time to time. The Company cannot predict such factors, nor can it assess the impact, if any, of such factors on the Company or its results. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

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