CAMBRIDGE, MA Jan. 4, 2006 - IntelliVid Corporation, the leader in intelligent video analysis software for retail loss prevention, today announced that Babies "R" Us has installed its Intelligent Video Analysis Solution, Video Investigator in a selected location -- including the wireless Video Article SurveillanceTM feature -- to reduce shrink while improving customer service.

Babies "R" Us selected Video Investigator to enhance the value of its existing in-store video systems and take an active role in loss prevention. Babies "R" Us has been using Video Investigator for three months, and has seen significant results in its loss prevention efforts in the locations where it was installed. Building on that success, Babies "R" Us recently became the first retailer to use the wireless Video Article Surveillance (VAS) feature, enabling store employees to move out of the surveillance room and onto the selling floor where they can better assist customers.

With this wireless capability, store employees now receive automated alerts to mobile handheld devices when selected merchandise is removed. According to Bob Serenson, Babies "R" Us' Director of Loss Prevention, "IntelliVid's wireless VAS feature enhances our loss prevention efforts while at the same time supporting our corporate mission of providing exceptional guest satisfaction because it puts more of our people out on the floor where they can be available for our customers. It's really a new way of thinking about loss prevention, and we're excited to be taking a leading role in making it happen."

"Babies "R" Us is truly an innovative retailer," said Patrick Sobalvarro, president and CEO of IntelliVid. "You can see it in the stores, in the way that they respond to customer needs, and in the way that they approach deploying new solutions to achieve key corporate goals. We are excited to be a partner with Babies "R" Us in helping to enhance customer service and also improve its loss prevention efforts."

About Babies "R" Us
Babies "R" Us is the nation's premier baby products retailer and specialty store chain and a leader in the juvenile industry. Since opening its first store in Westbury, NY in early 1996, the company has grown to more than 220 locations nationwide. Babies "R" Us features a wide selection of products for newborns and infants, including: cribs and furniture, car seats, strollers, formula, diapers, health and beauty aids, bedding, clothing for preemies through size 48 months, toys, and plenty of gift ideas in store and online at www.babiesrus.com.

About IntelliVid
IntelliVid provides intelligent video analysis solutions for the retail industry. Its Video Investigator software unleashes the full potential of existing surveillance systems, transforming them from passive recording devices into proactive theft prevention and store intelligence solutions. Video Investigator delivers bottom-line benefits to forward-thinking retailers. It automatically monitors store activities, and reveals important events to personnel, eliminating the time-consuming tasks of manually monitoring and searching surveillance video. It will also serve as a platform providing unprecedented insights into customer traffic, stock-outs, merchandising effectiveness and more.

Headquartered in Cambridge, Massachusetts, IntelliVid is backed by Intel Capital, Flagship Ventures, Egan-Managed Capital, and DFJ New England. Its customers include leaders in the department store, mass merchandise, and chain drug store segments.

All companies and products listed herein are trademarks or registered trademarks of their respective holders.

CONTACT:
George Cohen
George Cohen Communications
(617) 325-0011
george@gccpr.com

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