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321 STUDIOS WILL APPEAL COURT RULING


ST. LOUIS - February 20, 2004

- 321 Studios (321) will appeal today's ruling of the Northern District Court of California's Judge Susan Illston, and will seek a stay during the appeal process.

"Despite today's ruling, 321 stands firm in our vow to fight the Hollywood Studios in their effort to take away our customers' digital rights," said Robert Moore, Founder and President of 321 Studios. "There is no difference between making a copy of a music CD for personal use and making a backup of a DVD movie for personal use. We are so firm in our belief in the principle of fair use that we will appeal this ruling immediately. And we will take our fight all the way to the Supreme Court, if that's what it takes to win."

Judge Illston found 321's software in violation of section 1201 of the Digital Millennium Copyright Act, and enjoined 321 from manufacturing, distributing, or otherwise trafficking in any type of DVD circumvention software as of seven days from today.

The current version of 321's DVDXCOPY series will be available for sale for the next seven days. If 321 has not succeeded in obtaining a stay by that time, 321 will comply with the court order and replace the current version with product that does not include a "ripper," the software code temporarily banned by today's ruling.
In addition, 321's newest titles - GAMESXCOPY, DVDXSHOW, DVDXMAKER, and DVDXPOINT - will still be for sale through the company's website (www.321studios.com), and at major retailers.

About 321 Studios 321 Studios provides software tools to help consumers protect their investment in digital media, and is the leading provider of DVD backup, recovery, and creation software. Founded in 2001, 321 Studios' premier DVD backup title, DVDXCOPY PLATINUM, is one of PC Magazine's 'Best Products of 2003'. The company is privately headquartered in St. Louis, Missouri, with distributors and sales offices throughout Asia-Pacific, Europe, and the United States.

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DvD X Copy Gold®,DvD X Copy® and DVD X Copy Xpress® are registered trademarks of 321 Studios. We are an Authorized Affiliate/reseller on 321 Studios; no other relationship exists.