Press Release

Macrovision Corporation Reports Second Quarter Financial Performance

Record Second Quarter Revenue

Santa Clara, CA - Aug 1, 2006 - Macrovision Corporation (NASDAQ: MVSN) announced today record second quarter revenues of $58.3 million compared to $44.4 million for the second quarter of 2005. US GAAP net income was $6.2 million compared to $6.1 million for the second quarter of 2005. Diluted GAAP earnings per share for the quarter were $0.12, the same as the comparable quarter in 2005.

Non-GAAP earnings were $14.2 million, compared to $8.0 million in the second quarter of 2005. Non-GAAP diluted earnings per share were $0.27, compared to $0.16 in the same quarter of 2005. Second quarter revenue, non-GAAP earnings and non-GAAP diluted earnings per share were all record numbers for a second quarter. Non-GAAP earnings exclude non-cash items such as amortization of intangibles from acquisitions, impairment on investments, and stock-based compensation charges, as applicable. A reconciliation between net income on a GAAP and non-GAAP basis is provided in tables below.

The Company generated $28 million of cash from operations and its liquid cash and investments at the end of the second quarter were $261 million. The cash from operations were a record for any quarter in the Company's history.

"We are pleased with our second quarter financial results. We successfully executed another quarter against our financial plan and we remain confident with our full year revenue estimates provided in our first quarter earnings call in May." said Fred Amoroso, President and CEO of Macrovision. "As we further expanded our security and licensing solutions into digital distribution, commerce and hardware, we gained notable traction with our existing customers and new prospects."

"We continue to believe that full year 2006 revenue will range between $239 million and $249 million and that non-GAAP operating margins will range between 28 and 30 percent. We are realizing even more profits than previously expected in low tax paying jurisdictions so we are lowering our full year and remainder of the year non-GAAP tax rate to 22%. As a result of the overachievement in non-GAAP operating profits in the second quarter and the lower tax rates in the second quarter through the balance of the year, we are raising our full year fully diluted non-GAAP earnings estimate and now expect a range between $1.10 and $1.14 per share. In the third quarter of 2006, we believe that our revenue will be within a range of $56 million and $58 million and that fully diluted non-GAAP earnings per share will range between $0.19 and $0.21." added James Budge, Chief Financial Officer. "The fully diluted non-GAAP earnings per share range estimate includes the costs incurred or currently anticipated to be incurred by us in connection with the SEC and US Attorney requests for information regarding our stock option practices that we received. At this point, we do not anticipate any delay in regulatory filings as a result of either of these matters."

GAAP to Non-GAAP Reconciliation
Macrovision provides non-GAAP financial information to assist investors in assessing its current and future operations in the way that Macrovision's management evaluates those operations. Non-GAAP earnings is a supplemental measure of Macrovision's performance that is not required by, and is not presented in accordance with, GAAP. The non-GAAP information does not substitute for any performance measure derived in accordance with GAAP. Macrovision believes that this non-GAAP information provides useful information to investors by excluding the effect of some non-cash expenses that are required to be recorded under GAAP but that Macrovision believes are not indicative of Macrovision's core operating results, or that are expected to be incurred over a limited period of time.

Macrovision's management evaluates and makes operating decisions about its business operations primarily based on revenue and the core costs of those business operations. Management believes that the amortization of intangibles from acquisitions, impairment on investments, and equity-based compensation charges are not core operating costs of its business operations. Therefore, management presents non-GAAP financial measures, along with GAAP measures, in this earnings release by excluding these items and other significant unusual items from the period expenses. The income statement line items involved in the adjustment from GAAP to non-GAAP presentation in this earnings release are amortization of intangibles; and the following items that include equity-based compensation charges: (1) cost of revenues; (2) operating expenses, research and development; (3) operating expenses, selling and marketing; and (4) operating expenses, general and administrative. These items in turn affect (1) total cost of revenues; (2) total costs and expenses; (3) operating income; (4) income before income taxes; (5) provision for income taxes; (6) net income; (7) diluted shares for EPS; (8) basic earnings per share and (9) diluted earnings per share. To determine its non-GAAP provision for income taxes, Macrovision recalculates tax based on non-GAAP income before income taxes and adjusts accordingly.

For each such non-GAAP financial measure, the adjustment provides management with information about Macrovision's underlying operating performance that enables a more meaningful comparison of its financial results in different reporting periods. For example, since Macrovision does not acquire businesses on a predictable cycle, management excludes amortization of intangibles from acquisitions in order to make more consistent and meaningful evaluations of Macrovision's operating expenses. Management also excludes the effect of impairments on investments for the same reason. Management excludes the impact of equity-based compensation to help it compare current period operating expenses against the operating expenses for prior periods and to eliminate the effects of this non-cash item, which, because it is based upon estimates on the grant dates may bear little resemblance to the actual values realized upon the future exercise, expiration, termination or forfeiture of the stock-based compensation, and which, as it relates to stock options and stock purchase plan shares, is required for GAAP purposes to be estimated under valuation models, including the Black-Scholes model used by Macrovision. Management uses these measures to help it make budgeting decisions between those expenses that affect operating expenses and operating margin (such as research and development, sales and marketing, and general and administrative expenses), and those expenses that affect cost of revenue and gross margin. Further, the availability of non-GAAP financial information helps management track actual performance relative to financial targets, including both internal targets and publicly announced targets. Making this non-GAAP financial information available to investors, in addition to the GAAP information, also helps investors compare Macrovision's performance with the performance of other companies in our industry, which use similar financial measures to supplement their GAAP financial information.

Management recognizes that the use of these non-GAAP measures has limitations, including the fact that management must exercise judgment in determining which types of charges should be excluded from the non-GAAP financial information. Because other companies, including companies similar to Macrovision, may calculate their non-GAAP earnings differently than Macrovision, non-GAAP measures may have limited usefulness in comparing companies. Management believes, however, that providing this non-GAAP financial information, in addition to the GAAP information, facilitates consistent comparison of Macrovision's financial performance over time. Macrovision has provided non-GAAP results to the investment community, not as an alternative but as an important supplement to GAAP information, to enable investors to evaluate Macrovision's core operating performance in the same way that management does. The tables below present the differences between non-GAAP earnings and GAAP net income on an absolute and per share basis.

Dial-in Information
Macrovision will hold an investor conference call on August 1, 2006, at 5:00 p.m. ET. Investors and analysts interested in participating in the conference are welcome to call 800-240-5318 (or international +1 303-205-0033) and reference the Macrovision call.

The conference call can also be accessed via live Webcast at http://www.macrovision.com/ or http://www.fulldisclosure.com/ (or http://www.streetevents.com/ for subscribers) on August 1, 2006 at 5:00 p.m. ET. The on-demand audio Webcast of Macrovision's earnings conference call can be accessed approximately 1-2 hours after the live Webcast ends.

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 11065813#. Access to the replay is available through August 2, 2006.

About Macrovision
Macrovision provides distribution, commerce and consumption solutions for software and entertainment content to the home video, PC games, music, cable/satellite, consumer software, and enterprise software industries, Macrovision holds a total of more than 235 issued or pending United States patents and more than 1,200 issued or pending international patents, and continues to increase its patent portfolio with new and innovative technologies in related fields. Macrovision is headquartered in Santa Clara, California, U.S.A. with other offices across the United States and around the world. More information about Macrovision can be found at http://www.macrovision.com/.

©Macrovision 2006. Macrovision is a registered trademark of Macrovision Corporation. All other brands and product names and trademarks are the registered property of their respective companies.

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