C-3D Digital, Inc. has increased its content capabilities for its 24 hour
3D channel by executing a definitive agreement for the acquisition of
security interests in the technology and principle assets of Strata Inc., a
premier name in 3D computer graphics. "The acquisition of Strata assets and
technology has been selected for its strategic fit into the C-3D Digital
Inc.'s network of companies for the ability to add eye-popping 3D effects,
that Strata is famous for, to our growing content currently shown on the 3D
channel. In addition, by adding the Strata product line, C-3D Digital will
gain one of the best 3D technologies in the industry and tens of thousands
of creative production artists worldwide who rely on their software," said
Doug Stanley, Network General Manager.


As part of the acquisition, Evans and Sutherland exchanged their security
interest in Strata Corp. for an equity position in C-3D Digital Inc. The
terms of the acquisition were not disclosed. The transaction is subject to
the enforcement of C-3D Digital Inc.'s security interest in the technology.


The Strata 3D tool line has been used for such well known films as
"Contact," "The Fifth Element," and "Batman Forever," the 1998 hit computer
game MYST, and television shows like the "1998 MTV Movie Awards,"
"Hercules," "Xena," and websites of Warner Brothers, Blockbuster Video, and
NBC. A leader in computer graphics since 1968, E&S develops and
manufactures hardware and software to produce vivid and highly realistic 3D
graphics and synthetic environments. The company's product offerings
include a full range of high-performance visual systems for simulation,
training, and virtual reality applications, as well as professional
graphics accelerator products for MCAD, animation, visualization, and
content creation on NT workstations. Its workstation and software partners
include: Intel, Dell, HP, Gateway 2000, Strata, and Computer Associates.


C-3D Digital, Inc. is an advanced technology-oriented company in the
communication and entertainment industries. As innovators of 3D
entertainment technology, C-3D Digital is the first television network to
offer exclusive 3D programming to satellite and cable TV subscribers, and
gives its customers the ability to convert current 2D content to 3D in realtime.