Cambridge, MA February 26, 2007 - IntelliVid Corporation today announced its Proof-of-Value Program, created to benchmark the effectiveness of video analytics systems in the retail industry.

As the leader in intelligent video analysis software for retail loss prevention and store intelligence, IntelliVid is committed to helping the retail community learn the impact that its video analytics-enabled workflow has on a retailer's bottom line. Based on IntelliVid's experience with retailers, program participants will see a decrease in shrink on the average of 25 percent, resulting in an increase in operating income of approximately nine percent.

Shrink is estimated at 1.59 percent of retail sales, according to the University of Florida's 2005 National Retail Security Survey. This percentage translates to an astounding $37.4 billion in annual losses to retailers. For an average department store chain with $14 billion in annual sales, shrink erodes $222.6 million off of the bottom line.

Shrink is a significant drain on a retailers' performance, creating a "domino effect" of mitigation costs and multiple losses. For example, when merchandise is stolen, it is no longer available for customers to purchase. These so-called "silent out-of-stocks" mean ongoing lost sales opportunities. In addition, dishonest employees harm the store's image, environment, and perception of quality, and present a liability risk to the company. Finally, given the high cost of theft, retailers are forced to charge higher prices or accept lower margins, further impacting the bottom line. Thus, the real cost of total losses is actually significantly higher than $37.4 billion

Proof-of-Value Program
IntelliVid is offering retailers the opportunity to participate in a controlled test program which demonstrates the value of its shrink-reducing solution. This is a unique opportunity for a select group of retailers to work with a company that is focused on quantifying the return on a loss prevention investment.

"Research shows that 90% of retailers are planning to invest in video analytics over the next 12 months," said Alan Sherman, IntelliVid's director of marketing. "By participating in our Proof-of-Value Program and using our video-based analytics and workflow, retailers will be able to make their purchase decisions armed with proven results."

Fred Edling, IntelliVid's chief financial officer added, "This is a compelling opportunity for leading retailers to experience how significant an impact intelligent video analytics can have on their operating margins. As a CFO, I appreciate the financial pressures retailers face, and I'm pleased to offer them our Proof-of-Value Program, so they can see first-hand how strategic an imperative video analytics truly is."

Proof of Value Elements
For each Proof-of-Value program participant, IntelliVid will:

* Provide video analytic test systems for a defined time period (estimated at 3-6 months)
* Work with CFO to set business objectives, including ROI
* Train loss prevention personnel on best practices for video analytics
* Provide customer and technical support to ensure all aspects of the test are carried out successfully
* Work with retailer to optimize and monitor test environment and interpret results
* Provide a detailed report summarizing the results of the test including:
- pre-and post-test shrink measurements
- ROI calculations
- workflow analysis
- best practices

For additional information regarding IntelliVid's Proof-of -Value Program, retailers are invited to contact Fred Edling at 617-497-8400.

About IntelliVid
IntelliVid is the leading video intelligence application provider. IntelliVid’s Video Investigator™ software unleashes the full profit potential of video surveillance systems, transforming them into proactive asset protection, risk prevention and customer intelligence solutions. Its patented technology platform empowers the rapid and accurate tracking of people and assets across time and space, delivering first of its kind rapid video analysis and chain of custody evidence. Video Investigator™ can also provide unprecedented merchandising and operational insight into customer shopping behavior by rapidly analyzing and understanding traffic patterns, people counting, linger times and conversion rates.

Headquartered in Cambridge, Massachusetts, IntelliVid is backed by leading venture investors DFJ New England, Egan-Managed Capital, Flagship Ventures and Intel Capital. IntelliVid’s Video InvestigatorTM is the first video intelligence application to gain real traction in the retail market with installs at many of the leading Fortune 500 retail companies.

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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