EXHIBIT 99.1

NEWS RELEASE

SEACHANGE INTERNATIONAL ANNOUNCES

SECOND QUARTER FISCAL 2006 PRELIMINARY RESULTS

MAYNARD, Mass. (August 23, 2005) – SeaChange International, Inc. (Nasdaq: SEAC) today announced preliminary financial results for its second quarter of fiscal 2006 ended July 31, 2005. Revenues for the quarter were $26.2 million compared to revenues of $43.0 million in the second quarter of fiscal 2005, a 39% decrease. The Company recorded a net loss of $6.6 million, or $0.23 per diluted share, for the second quarter of fiscal 2006 versus net income of $3.3 million, or $0.12 per diluted share, for the second quarter of fiscal 2005.

During the quarter, the Company invested $8.3 million in Casa Systems, Inc. representing a 19.8% ownership interest and consisting of convertible preferred shares. The Company is currently completing its analysis of the proper accounting treatment with respect to this preferred equity investment. If it is determined that the Company must utilize the equity method to account for its investment, the Company may be required to record a charge to operations to write-off in process research and development, if any, and amortize other intangibles during the quarter. As soon as this determination is made the Company will announce its final results.

In the second quarter of fiscal 2006, Video-on-Demand (VOD) systems revenues were $12.0 million. Total systems revenues for the quarter were $14.4 million, which, in addition to VOD, included revenues of $1.7 million from advertising systems and $700,000 from broadcast systems. Service revenues for the quarter were $11.8 million.

“In spite of the timing challenges in predicting business in the potentially large, emerging on-demand television market, SeaChange is one of the top choices for broadband television operators, cable and telco alike. We have more broadband deployments streaming more video than any other supplier,” said Bill Styslinger, president and CEO, SeaChange International. “Although telco initiatives are moving forward around the world, their VOD deployments are later than we anticipated. SeaChange’s telco customers include Japan’s NTT, Canada’s Telus and Manitoba Telecom, Verizon, and others to be announced.

“In the U.S., cable operators’ VOD system spending has slowed, however we do expect that demand will increase as they extend their digital simulcast installations,” said Styslinger. “SeaChange serves such major cable operators as Comcast and Time Warner in the U.S., NTL and Telewest internationally, and others worldwide.”

Styslinger said, “SeaChange’s breadth of expertise in the business of television and IP technology will help all of our television customers continue to deliver new services and take advantage of emerging opportunities.

“We are aggressively expanding our product and service offerings to take even greater advantage of the opportunities in the transition to on-demand television,” said Styslinger. “Our Axiom command and control software handles critical operations and is proven in the world’s largest metropolitan VOD deployments. Our Multiverse middleware will combine the advantages of Liberate, Minerva and VODlink and enable the creation of compelling on-demand and IP television applications. Our Casa Systems investment provides us with access to the transport, modulation and splicing businesses for both cable and telcos. And for broadcasters, networks and studios, we believe that our MediaClient architecture will provide significant advantages in the way that content is stored, distributed and leveraged across a variety of platforms.

“Given the temporary slowdown in the on-demand market, we believe our revenues for the year will be less than our previously issued guidance of $160 million,” said Styslinger. “That said, it is clear that cable operators, telcos, networks, advertisers and other content providers see that on-demand television is inevitable. We continue to believe that the second half of our fiscal year will be better than the first, and the first half of next year will be even better.”

Potential subscribers in systems planned for SeaChange VOD (estimates)

The Company will discuss its financial results and business outlook in more detail today during its webcast conference call at 5:00 p.m. EDT, which will be available live and archived at www.schange.com.

Safe Harbor Provision

Any statements contained in this press release that do not describe historical facts, including without limitation statements concerning expected future performance, product introductions and general market conditions, may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties that may cause actual results to differ materially from expectations. The factors that could cause actual future results to differ materially from current expectations include the following: the continued growth, development and acceptance of the video-on-demand market; the loss of one of the Company’s large customers; the cancellation or deferral of purchases of the Company’s products; a decline in demand or average selling price for the Company’s broadband products; the Company’s ability to manage its growth; the Company’s ability to protect its intellectual property rights and the expenses that may be incurred by the Company to protect its intellectual property rights; an unfavorable result of current or future litigation, including the Company’s current patent litigation with C-COR (as successor to nCube Corp.); content providers limiting the scope of content licensed for use in the video-on-demand market; the Company’s ability to introduce new products or enhancements to existing products; the Company’s dependence on certain sole source suppliers and third-party manufacturers; the Company’s ability to compete in its marketplace; the Company’s ability to respond to changing technologies; the risks associated with international sales; changes in the regulatory environment; the performance of companies in which the Company has made equity investments, including the ON Demand Group Limited; the Company’s ability to hire and retain highly skilled employees; and increasing social and political turmoil.

Further information on factors that could cause actual results to differ from those anticipated is detailed in various publicly available documents made by the Company from time to time with the Securities and Exchange Commission, including but not limited to, those appearing under the caption “Certain Risk Factors That May Affect our Business” in the Company’s Annual Report on Form 10-K filed with the Commission on April 15, 2005. Any forward-looking statements should be considered in light of those factors. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak as of the date they are made. The Company disclaims any obligation to publicly update or revise any such statements to reflect any change in Company expectations or events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results may differ from those set forth in the forward-looking statements.

About SeaChange International, Inc.

SeaChange International, Inc. is a world leader in digital video systems, spanning broadcast and broadband. The Company creates powerful server and software systems that manage, store and distribute professional quality digital video. SeaChange’s innovative products are based on a scalable, distributed software architecture and standard technology components to continually deliver exponential improvements in digital video cost-performance. As a result, SeaChange enables broadband, broadcast, satellite and new media companies to streamline operations and reduce costs, allowing for expanded services, new applications and increased revenues. SeaChange is headquartered in Maynard, Massachusetts and has product development, support and sales offices throughout the world. Visit www.schange.com.

MediaCluster and SeaChange are registered trademarks of SeaChange International, Inc.

SeaChange International, Inc.

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SeaChange International, Inc.

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