Xara Acquired by MAGIX

Xara, the little company that took on Microsoft with its Xara Xtreme software a year ago sells to the German company MAGIX. What does that mean for users?

PRESS RELEASE

January 30, 2007 —Xara announced today that it has been acquired by German company, MAGIX AG who hold the leading market position for the distribution of photo, music and video software in Germany and various other European countries, as well as being one of the three leading market players in the USA.

The acquisition is good news for Xara and its customers. The new financial resources that MAGIX provide together with the greatly increased distribution network for Xara products and technology will accelerate the development and market capture of the Xara products.

Xara will trade as a subsidiary of MAGIX under the existing management. It will continue to develop the Xara products such as the highly successful Xara Xtreme, to be marketed under both Xara and MAGIX brands.

About Xara Group Ltd

Xara has been developing cutting edge software in the UK since 1981. Xara has developed a wide range of products covering the whole realm of publishing and graphics software. Xara Xtreme is the world’s fastest, and many believe the world’s best drawing and illustration software.

Xara has a particularly strong technology and innovation history. It pioneered many of the graphics technologies and techniques used by the industry today. Many of its User Interface techniques have been adopted by the industry. From the very beginning Xara has been involved in the online world. Doing most of its business via the Internet, Xara has gained millions of customers worldwide. Xara Online provides leading edge online Web Service based solutions.

About MAGIX AG

MAGIX is an internationally operating provider of software, online services and digital content for using multimedia products and services in personal communication. MAGIX offers private and professional users technologically advanced and user-friendly software, online services and digital content for designing, editing, sharing and archiving digital photos, videos and music. In 2005, based on sales of products through retail distribution of photo, music and video software, MAGIX held a leading market position in Germany and various other European countries, and was one of the three leading market players in the USA.