A multimedia coding standard, MPEG4 has frozen its Committee Draft (CD) as the MPEG4 version 1 CD, last October. It defines Audio-Visual (AV) coding Algorithms and their System Multiplex/Composition formats. Founding on Object-base concept, Video part adopts Shape Coding technology in addition to conventional Texture Coding skills. Audio part consists of voice coding tools (HVXC and CELP core) and audio coding tools (HILN and MPEG2 AAC or Twin VQ). Error resilience technologies and Synthetic and Natural Hybrid Coding (SNHC) technologies are the MPEG4 specific features. System part defines flexible Multiplexing of audio-visual bitstreams and Scene Composition for user-interactive re-construction of the scenes at decoder side. The version 1 standardization will be finalized in 1998, with some possible minute changes. The expected application areas are real-time communication, mobile multimedia, internet/intranet accessing, broadcasting, storage media, surveillance, and so on.