In this paper, we propose the method of extracting the caption regions from news video and the method of recognizing the captions that can be used mainly for content-based indexing and retrieving the MPEG-2 compressed news for NOD(News On Demand). The proposed method can reduce the searching time on detecting caption frames with minimum MPEG-2 decoding, and effectively eliminate the noise in caption regions by deliberately devised preprocessing. Because the kind of fonts that are used for captions is not various in the news video, an enhanced template matching method is used for recognizing characters. We could obtain good recognition result in the experiment of sports news video by the proposed methods.