STEREOGRAPHICS ANNOUNCES NEW 3D CRYSTALEYES PRODUCTS FOR MOVIE THEATERS

CrystalEyes to Enable Domed Theaters to be Equipped for Stereo Big Screen
Movies

San Rafael, CA -- February 6, 1995-- StereoGraphics Corporation, the
world's leading supplier of stereo three-dimensional electronic display
equipment, announced today new theater products and services to the movie
industry.

A new model of the company's flagship untethered 3D CrystalEyes eyewear
will enable filmgoers to enjoy 3D in domed and curved-screen theaters.
CrystalEyes, along with associated products and consulting, will be
available to the film industry -- from studios and producers, to theater
owners, and distributors -- enabling affordable, three-dimensional visual
effects to filmgoers in large equipped theaters for the first time.

In addition to theater-compatible3D eyewear, projection systems and
wireless control electronics, StereoGraphics is available for consultation
based on the expertise that is necessary to implement its products and
technology in a wide variety of theater situations .

"3D CrystalEyes is the key enabler to a whole new movie experience which
will create an entire new industry," said Lenny Lipton, founder,
CrystalEyes inventor and StereoGraphics' vice president of R&D. "This is
the first time that the new theater multiplexes can offer a revolutionary
movie experience to filmgoers in addition to the traditional
flat-appearing screens. New attractions heretofore found only in theme
parks -- with movement, virtual reality, and interactivity -- can now be
added to traditional movies. We have packaged 3D technology into a dynamic
and profitable form of entertainment that is well-suited to mass
audiences.'

The heart of StereoGraphics' theater products is the 3D CrystalEyes
eyewear, which enables a new, low-cost, high-impact large-audience venue
with modular easy-to-install, easy-to-use stereo products. Filmgoers will
wear lightweight 3D CrystalEyes eyewear for physical comfort. The glasses'
high resolution provides ghost-free, flicker-free viewing of the most
realistic true-to-life images for high-intensity viewing and comfort.
Because the untethered high-speed liquid-crystal shuttering lenses of the
glasses are synchronized with the on-screen 3D stereo image by infrared
sensors located on the back of theater seats or at the movie screen, any
number of users can simultaneously view the display with complete freedom
of movement. Master control of the interlocked glasses and sensors is
through centrally-located electronics.

StereoGraphics' 3D CrystalEyes weigh one-fifth that of the competition (3
oz. versus 14 oz.), with five times the dynamic visual range (100.0:1
versus 200:1). This results in a normal wearing experience for the user,
along with much higher resolution and no ghosting, versus unwieldy goggles
with a tight head band.

RECENT ENTERTAINMENT USES OF CRYSTALEYES

StereoGraphics and Futurescope, a virtual reality production company based
in Santa Monica, CA, have announced that Futurescope's new 3D Rave
Experience is now packaged as an easy-to-use system available to Rave
video jockeys and promoters for worldwide distribution. The 3D Rave
Experience is based on Futurescope's highly successful underground dance
party, commonly called a Rave, held at the NEXSUS Project in Montreal,
Quebec,. Canada, late last year. At that event, close to 3,000 people wore
StereoGraphics' CrystalEyes 3D passive polarizing glasses to view
integrated two- and three-dimensional images projected by an Electrohome
Large Screen Projector System onto a 20-foot screen. Futurescope produces
3D visuals for film, broadcast video and high-definition video (HDTV)
projects for marketing, corporate promotion, professional sports,
broadcast television, travel and tourism industries.

CrystalEyes VR 3D virtual reality eyewear are featured in "Big Future," the
first-ever interactive theme house/family entertainment destination which
recently opened in St. Louis, Missouri. Multiple users can simultaneously
enter virtual worlds wearing StereoGraphics patented interactive
CrystalEyes VR shuttering liquid crystal eyewear. Also used for viewing by
large groups are the firm's low-cost, passive polarizing glasses designed
to utilize the Projection ZScreen, which is attached to a large screen
data projector.

The 13,000-square-foot center is designed to stimulate the imagination of
kids of all ages and their parents with more than 80 different positive
experiences, such as diving into virtual adventures, embarking on
surrogate travel expeditions, jumping into interactive movies and
conversing with large-screen, multimedia computers.

Exhibits include the "Temple of Horus," a meticulous recreation of an
authentic long-gone Egyptian Temple projected on a four-foot-by-five-foot
screen. Wearing CrystalEyes passive polarizing glasses, guests can explore
this archeological landmark as if they were actually there. Visitors use
either a trackball or joystick as the navigational device to explore the
temple. The projected scene responds to their movements as they turn
corners to discover crypts, walk through chambers containing relics and
interact with ancient hieroglyphics.

CRYSTALEYES TECHNOLOGY

CrystalEyes incorporates liquid crystal (LC) shutters that alternate
between transparent and opaque at 120 frames per second and are
synchronized with a stereo-ready projector or monitor (at 120Hz) using
wireless, infrared signals. For example, when the left image is on the
video screen, the left lens of the eyewear opens while the right lens
closes -- thereby channeling the appropriate image to the appropriate eye.
The result is a non-flickering true stereo 3D image. When 'closed,'
CrystalEyes' liquid-crystal shutters are opaque enough to ensure that the
unwanted half of the stereo pair doesn't leak through, and when open, the
shutters are transparent enough to ensure that the overall image is
realistically bright. This high dynamic range results in virtually
'ghostless' 3D images.

StereoGraphics' patented CrystalEyes depth perception products utilize true
3D stereo to improve and dramatize viewing for a broad and diverse user
universe. CrystalEyes products provide high-resolution, realistic and
flicker-free stereo viewing for scientific visualization, animation,
medical imaging, surgical endoscopy, molecular modeling, computer games,
photogrammetry, location-based entertainment, motion simulation,
inspection systems, remote vehicle control, flight simulation, corporate
presentations and all types of education and training.

As part of its efforts to bring stereo viewing (and virtual reality)
products into mainstream computing and video, StereoGraphics' CrystalEyes
VR, a high-resolution, full-color, affordable interactive stereo virtual
reality viewing system, offers head tracking with six degrees of freedom.
The firm's Projection ZScreen and low-cost passive CrystalEyes glasses
configuration enables large groups of 100 or more to simultaneously view
3D objects, while reducing the cost of eyewear.

As part of its efforts to bring stereo viewing (and virtual reality)
products into mainstream computing and video, StereoGraphics has made
three dimensional stereo viewing possible on non-stereo ready computers
(using stereo-ready monitors) with CrystalEyes PC. The product works with
most popular desktop system platforms, including IBM PCs and compatibles,
Apple Macintosh, Power Mac and Power PC, as well as Amiga computers. It
includes the CrystalEyes lightweight, untethered eyewear and combines
stereo electronics and an infrared emitter into a single small package
which sits on top of the monitor.

StereoGraphics Corp., founded in 1980, invented and developed the market
for modern stereo imaging hardware. Due to its capability, reasonable
price and state-of-the-art technology backed by 15 patents, CrystalEyes
systems are accepted as the industry standard for stereo viewing.
StereoGraphics is located at 2171 East Francisco Boulevard, San Rafael,
California 94901, phone 415/459-4500, fax 415/459-3020, email
stereo@well.com.
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Questions Regarding StereoGraphics' New Theater Products
Answered by Lenny Lipton
-----------------------------------------------------------------
Lenny Lipton is the vice president of research and development and the
chairman of the board of StereoGraphics Corp. Mr. Lipton founded
StereoGraphics in 1980, after seven years of independent research in the
field of electronic stereoscopic displays.

Mr. Lipton is the inventor of the modern electro-stereoscopic display. His
inventions include the multiplexing technique used for workstations to
produce flicker-free stereoscopic computer graphics, and the multiplexing
technique which is the basis for StereoGraphics' video products used for
applications such as medical imaging and corporate communications. He led
the design team that created the CrystalEyes(g) 3D eyewear, and made a
significant contribution to electro-optics with his invention of the
achromatic surface mode device, the shutter which enabled the development
of CrystalEyes eyewear. He has been awarded fourteen patents.

Prior to his work in stereoscopy Mr. Lipton made contributions in several
fields. He is the author of the standard textbook on filming, "Independent
Filmmaking," and he independently produced a number of documentaries which
have been screened on television and in theaters. He received grants from
the National Foundation for the Arts and the American Film Institute for
his film work. He also wrote the words of the classic song, "Puff the
Magic Dragon," for the singing trio, Peter, Paul & Mary.

Mr. Lipton attended Cornell University where he received an A.B. degree,
having majored in physics. He has worked as a journalist for Time Inc.,
Ziff-Davis, and other publications. On several occasions has been a
columnist for national magazines.
-----------------------------------------------------------------
Q: What does StereoGraphics do?

StereoGraphics is the most experienced 3D company and the industry's
dominant player, the holder of 15 patents in 3D visualization technology.
We've shipped more advanced stereo systems than anyone in history.

Q: What does StereoGraphics make?

A full line of stereo products, centered around CrystalEyes technology, for
over thirty imaging market applications, including film, video, large and
small projection systems, personal computers, computer-aided design, and
virtual reality.

Q: What is significant about 3D CrystalEyes?

CrystalEyes is far removed from the 3D eyewear used in theaters in the
past. It features superb optical qualities including a neutral
transmission of colors -- no unwanted coloration -- and a high dynamic
range, preventing unwanted light during the lens occlusion phase.
CrystalEyes eyewear is as comfortable and convenient as a pair of glasses
due to its light weight. CrystalEyes produces a true 3D image used with
projection screens and computer monitors. CrystalEyes are the only
economical eyewear to produce true, flicker-free, full color depth
perception demanded by the precise tasks performed on today's modern
electro-stereoscopic displays.

Q: How does stereo vision work in people? How do 3D CrystalEyes work?

The effect of three dimensionality is a combination of what the human eye
sees and the brain processes. Human eyes are positioned a few inches
apart, thus each sees an image from a slightly different perspective. The
brain then fuses the two images into a single image that has depth --- an
effect known as "stereopsis." Three-dimensional images projected on a
theater or video screen, or computer monitor actually contain two images,
called a stereo pair, which are delivered separately to the left and right
eye. StereoGraphics' CrystalEyes eyewear produces stereopsis by
electronically replicating the way people view their surroundings in the
real world.

Q: What makes 3D CrystalEyes significant for the film industry?

CrystalEyes technology allows 3D movies to be projected on large curved
screens with excellent image quality. The drawback to previous processes
is ghosting or cross-talk in which one eye sees the other eye's image. 3D
CrystalEyes has vastly lower cross-talk so that 3D image appears clearer,
sharper. Also, this is the only way to project color movies on curved
screen for a good result. The polarized method, more or less standard,
doesn't work well on deeply curved screens.

Q: What is a domed (Solido-type) theater, and what makes it different
   from conventional and other 3D theaters?

The Imax Solido theater projects images on a dome, like a planetarium. The
film is huge, each frame the size of a postcard. the sheer size of the
film and its expense make it an unlikely candidate to replace the present
cinema. However, you don't have to use the giant Imax format to make
CrystalEyes work. Ordinary 35- or 70mm formats will do as well for almost
every application. The photography is done with two interlocked cameras
and the projection is done with two interlocked projectors. The shutters
of the projectors are synchronized with the shutters in the 3D CrystalEyes
eyewear.

Q: What does the technology involve for film producers and theater
   owners?

It costs more to project stereo movies. How much more depends on the
installation.

Q: What are the elements involved in 3D movies? Which are technically
   feasible for mass market movies, which are not, and why?

All technical issues have been resolved. The 3D CrystalEyes eyewear is the
farthest along due to size, ease of wearing, resolution, etc. At this
time, the market is expanding rapidly, which will lead to eyewear that is
inexpensive enough for the neighborhood theater. As for cameras and
projectors, StereoGraphics has pioneered a 3D video camera and recording
system, which has solved the technical hurdles for a 35- or 70mm film
camera. For 3D projectors, most issues have been resolved by the advances
made in 3D camera technology.

Q: What changes in film production and theater equipment are required
   for 3D CrystalEyes technology?

For production, it takes a little more time and effort -- maybe 10 percent
-- than a conventional film. Film and processing are doubled.

Theater equipment involves the use of dual projectors and making the
infrared link work in synchrony with these projectors. The house will be
equipped with infrared emitters driven by a centrally-located electronics
package. Alternatively, long range infrared sensors can be mounted on the
theater screen. The emitters are the link to the eyewear, ensuring that
the shuttering of the eyewear corresponds to that of the screen image as
projected.

Non-theme park or special venues will need a projectionist in attendance.

Q: How does the industry get started with StereoGraphics?

StereoGraphics offer the movie industry a proven technology. This can be
easily demonstrated by the products and applications in which the company
has broad and deep experience. StereoGraphics can assist with the
technology for cameras and projectors required to compete with Imax. Imax
is limited by its peculiar, expensive technology. The industry, with
StereoGraphics' help, can bypass the Imax bottleneck, and satisfy the
demand for inexpensive 3D movies.

Q: What does the filmgoer get from this?

Filmgoers get a vivid virtual reality-like experience with the kind of 3D
that only science fiction writers talk about. Images of amazing beauty and
clarity, with depth, will involve, engage and stimulate the viewer.

Q: What are the cost implications for the industry?

It will cost more to produce and exhibit than standard 2D, but the
StereoGraphics 3D CrystalEyes approach costs less than the expensive Imax
approach, because it doesn't have to be used in conjunction with their
giant film format.

Q: How does the 3D CrystalEyes modular approach in the theater differ
   from competitive packages which market a package only?

The modular approach allows the producer to combine existing products into
packages that make sense in terms of price/performance specifications. The
are many models of cameras and projectors which can be used in 35- and
70mm formats. There are people presently offering stereoscopic camera rigs
which take advantage of existing gear. People in the industry know how to
put such systems together. We offer them the eyewear/infrared link
component, which is the critical, enabling component. We offer them
something with lighter weight and better quality than the competition,
with the ability to mix and match equipment to their specifications.

Q: What technical issues need to be overcome in implementing 3D
   CrystalEyes in theaters?

What about sound and sound synchronization? Sound is not an issue.
Sophisticated stereo sound is present in most movie theaters today.

Q: Which studios, producers and/or theater owners is StereoGraphics
   working with now?

At this time, StereoGraphics is working under non-disclosure with several
studios and production houses.

Q: What is the impact going to be of 3D movies, and specifically,
   what impact will 3D CrystalEyes have and why?

3D CrystalEyes will allow people to have the most realistic movie
experience ever, and if the filmmaker is good, it will be the most fun
they've ever had in a movie theater.

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