NewTek Ships VT[2]

Virtual TV Studio-in-a-box™ delivers real time non-linear editing, 2D & 3D
graphics creation, live switching and Internet streaming at an
unprecedented low price point

SAN ANTONIO, January 22, 2002 - NewTek, manufacturer of industry-leading 3D animation and video production products, announced today the much-anticipated shipment of VT[2], a live video production environment for Windows 2000-based computer systems. VT[2] retails for $2995.00 and includes a real time nonlinear editor, live web streaming, character generation, 2D painting and compositing, 3D animation and effects, real time keying, video and audio processing, and all the production tools you need in an integrated, easy-to-use package. In addition, a switcher expansion module is available for $1995.00 to add component, composite and Y/C live switching, audio mixer and machine control.

"There is nothing else this powerful and affordable in the video production industry." said Tim Jenison, founder and Chief Technology Officer of NewTek. "Reduced budgets no longer need to affect production quality, since VT[2] brings every production and post-production tool to a single desktop."

TV Studio-in-a-box
VT[2] capitalizes on NewTek's decade of experience with desktop video integration to combine an affordable, fast and easy-to-use interface with uncompromising quality for live production, post-production and Internet streaming. From the highest-quality component switching and uncompressed real time multi-format editing, VT[2] provides flexibility and power at an affordable price. The quality and depth of capabilities in the VT[2] make it an ideal solution for a wide variety of applications such as television commercial production, wedding and event video production, live broadcast, corporate communication and education.

"I can still recall being amazed by the revolutionary price/performance of the original VT®," said NewTek Chief Executive Officer Jim Plant, "But it's nothing compared to what we've accomplished today. It's truly difficult to appreciate what a technological breakthrough VT[2] is until you actually see it in action."

All-in-one
The VT[2] provides all the following in one integrated suite:

• Component, Y/C and Composite Live Switching
• Over 300 real time digital video effects
• VT-Edit™ nonlinear editor
• Aura [2.5] Video Paint
• LightWave® Express™ 3D modeling and animation
• VT-CG character generator
• VT-Vision on-screen video monitors
• VT-Scope Waveform monitor/Vectorscope
• VT-DDR™ Digital Disk Recorder
• Speed Razor® 4.8SE
• Per input Proc Amps
• Internal time base correction of all inputs
• And more (visit www.videotoaster.com)

Live Production Environment
VT[2] is a Windows® 2000-based live video production environment. The wide array of integrated tools includes live switching of component, Y/C, composite, and SDI sources; titling; playback of animated overlays and bugs; cueing multiple Digital Disk Recorders and much more. Firewire® sources can also be used for live switching with the addition of an IEEE 1394 card. The inclusion of such professional tools as VT-Vision™ monitors, Waveform/Vectorscope displays and internal genlocking of all sources reduces production costs and the need for auxiliary gear.

Real time, Multi-Format Editing
VT-Edit is a real time multi-format editor with real time interactive Timeline and Storyboard displays. The speed of a Storyboard along with the precision of a Timeline, are available separately or in combination providing quick and effective editing capabilities for online production. DV, AVI, JPEG, TGA, MJPEG, MPEG, GIF, BMP, PCX, IFF, TIF, ASF, WMV, MP3, WAV, and uncompressed sources play back in real-time, with keyframeable color correction applied to any clip. Subprojects in VT-Edit let you turn complex segments into a single clip. Color-corrected picture-in-picture elements can be quickly created with unlimited overlays.

Digital Content Creation
For sophisticated projects that require pre-production, Aura™ [2.5] provides quick and easy creation of lower-thirds, animated graphic elements, and video layers. Such high-end features as 4-point pixel tracking and color isolation can be applied to any image or video clip. Additionally, Aura allows instant playback of animations through the Switcher, or downstream keying of animated bugs or titling.

LightWave® Expressä the 3D graphics tool set in the VT[2], is based upon NewTek's award-winning application LightWave 3D®. LightWave® Express provides the ability to create, texture and animate anything from simple logos to complex characters. For quick creation of flying logos, LightWave® Express includes a unique feature FXMonkeyä, that provides a simple and intuitive interface and a series of pre-set motion paths and logo choices to help speed up the animation process.

Tight Integration
The level of integration in the VT[2] allows all components in the system to work seamlessly together. For example: the Switcher cues the DDR for playback and will pause it once playback is completed; multiple audio presets can be programmed on the audio mixer; Aura plays back animations in real time through the Switcher; transitions can be auto-advanced and pre-loaded directly in the Switcher and launching any module automatically routes it to the Switcher's Preview bus.

Modules are also context-sensitive. If invoked from the VT-DDR, Capture will automatically sequence clips or graphics, and if launched from VT-Edit, Capture will automatically insert the media at the time bar's location in Timeline. The integration in the VT[2] is designed to enhance workflow and provide the user with a familiar set of tools to accomplish all aspects of video production.

Producer Reaction
"I see just about everything out on the market and there simply isn't anything close in terms of performance and power in one integrated package."

Jeffrey Hoffman,
Video producer,
Reseller.

"VT[2] is so easy that I can get my editing done in a fraction of the time. Our video editor has literally been blown away with what I've shown him this thing can do. "

Dan Ablan,
AGA Digital.

"Like a painter, once the canvas is prepared, the focus shifts to the creation of the 'art.' I believe what all of you at NewTek have managed to do again, is create a truly remarkable electronic canvas."

Corky Corbas,
Corbas Digital.

Price and Availability
The NTSC VT[2] is available immediately. It retails for $2,995.00. The upgrade from VT® 1.0 to [2] is $495. The optional SX-8 Switcher Expansion module retails for $1,995.00 The dual-standard NTSC/PAL version of VT[2] will ship Q1 2002 and retails for $3495.00. The optional SDI input/output module retails for $995.00. VT[2] will be available worldwide through NewTek's distribution channel.

Suggested system requirements for VT[2] are a Windows 2000-based system with a Pentium 4 1.5GHz processor or better, Intel 850 chipset, 512 MB of PC800 ECC RAM, 20GB ATA-100 7200 RPM System drive, Adaptec 19160 Ultra-160/M SCSI Controller, 4 Ultra-160/M SCSI 10,000 RPM Drives striped as a video RAID, and an nVidia based GeForce or Quadro2 graphics card.

About NewTek

With headquarters in San Antonio, NewTek is a leading provider of full-featured video editing, animation and special effects tools. The company's products are used worldwide on projects ranging from home video to feature film, including some of the most widely anticipated recent blockbusters, such as Jimmy Neutron, Dune, Star Trek Enterprise and Family Guy. Contact NewTek at 5131 Beckwith Blvd, San Antonio, TX 78249. Phone: 210-370-8000, Fax: 210-370-8001, website: http://www.newtek.com.

Note to Press:
For review units contact Hollie Wendt at hollie@earthlink.net. Images and logos relating to this press release are available at ftp://dealers:logos@fanatic.newtek.com/ using Internet Explorer or Netscape. If you are using an ftp client, connect to fanatic.newtek.com. The user IDis dealers and the password is logos.

· LightWave 3D®, VT®, and Aura are trademarks of NewTek.
· Other product names used in this publication are for identification purposes only and may be trademarks of their respective companies.