NewTek Announces First Major VT[2] Software Update
Free Update Provides Dual PAL/NTSC Compatibility Includes
More Than 50 New Features and Improvements

NAB - Las Vegas, NV -- April 8, 2002 -- NewTek announced today they are now shipping the first major software upgrade to VT[2], the TV-Studio-in-a-Box™. The update, which is free to existing VT[2] users, comes less than three months after the initial launch of the product, and features a large of number of software-based enhancements, including the ability work to with both NTSC and PAL video sources.

VT[2] is a software-based video production suite designed to take advantage of the latest advances in mainstream computing technology, rather than expensive custom hardware. VT[2] works with off-the-shelf computer platforms to deliver a system capable of multiple layers of real-time, uncompressed video for editing, motion graphics, compositing, live switching, or streaming to the Internet.

"Everyone knows that computing power only continues to improve, so we've put all of our efforts into developing software to take advantage of what the processors can already deliver. We add new features and functionality to the program every day, which makes bringing new capabilities to our customers easy and inexpensive, said Dr. Andrew Cross, vice president of video software engineering. "At NewTek we just fundamentally believe that is shouldn't be difficult or expensive to produce great video."

The latest release of VT[2] software, which is free to current VT[2] owners, adds over 50 new features, including the ability to work in both PAL and NTSC formats. "The beauty of VT[2] is that it provides complete flexibility to our customers. Now, not only ca a video producer forget what format they have to use to produce, independent filmmakers have a great, affordable solution for film development. Today, all you need is an inexpensive DV camera and the VT[2]'s PAL, 25-frame-per-second output to get started on a film project," commented Tim Jenison, NewTek's founder and chief technology officer. "It's our goal to make film and video production all about the creative process, not about expensive tools to do the job."

Features and Improvements
Some of the new features and enhancements for VT[2] include:

• DVE creation tools for use in the Editor or Switcher
• Dual PAL/NTSC compatibility
• Reduced switcher latency
• Improved switching speed between inputs
• Improved video signal quality
• Improved editor audio capabilities including separate Pan controls for each channel
• Direct manipulation of fade-in and out times on clips on the timeline
• Direct manipulation of overlay fade in and out times on clips on the timeline.
• New, propriety real-time slow-motion algorithm that dramatically improves the quality of time-stretched and reversed video clips
• Real-time time-line ripple with interactive feedback during editing manipulations
• Significant Chroma Keyer improvements, including the ability for the software to automatically configure the keyer for optimal results
• Automated tools to cut a project to the beat of a music
• Local and global timeline markers
• Local scrubbing on video clips
• Render to WAV files (including 96kHz support)
• New Desktop DDR module to allow clips, sequences and projects to be played from the Windows desktop
• Improved DV performance, and support for user supplied Video-for-Windows DV codecs
• Improved user interface and additional 'skins'
• Support for separated video and audio files
• Improved support for IDE drive systems
• SSE support in Pentium 4 CPUs
• And much more (see www.videotoaster.com for additional details.)

About VT[2]
VT[2] is a Windows 2000-based live video production environment. The wide array of integrated software tools includes live switching of component, Y/C, composite, SDI and Firewire® sources; character generation; real-time nonlinear editing of uncompressed and compressed files; 2D video painting and compositing, 3D modeling and animation and much more.

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™ the world's fastest non-linear editing system
• 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)

Pricing and Availability
The Dual Standard (NTSC/PAL) VT[2] is available immediately with a suggested list price of $2,995US. The upgrade is free for existing VT[2] customers. The upgrade price from VT® 1.0 to [2] is $495US. The optional SX-8 Switcher Expansion module retails for $1,995US. The optional SDI input/output module retails for $995US. VT[2] is available worldwide through NewTek's extensive distribution channel.

The Software update is available as a free patch, downloadable from NewTek's web site at http://www.videotoaster.com. It is also available on a 5-CD set as a convenience upgrade for $95US.

Suggested system requirements for VT[2] are a Windows 2000-based system with a Pentium 4 processor at 1.5 GHz 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, Texas, NewTek is a leading provider of full-featured video editing, animation and special effects tools including the VT®, LightWave 3D® and Aura. NewTek launched the desktop video revolution in 1990 with the release of the legendary VT®. The company's products are used worldwide on projects ranging from home video to feature film. Recent film and television projects using NewTek software include We Were Soldiers, Panic Room, Hart's War, Driven, A.I., Oscar®-nominated Jimmy Neutron, Boy Genius, Final Fantasy, Blackhawk Down, The Time Machine, Black Knight, How The Grinch Stole Christmas, The 6th Day, Jurassic Park III, Behind Enemy Lines, X-Men The Movie, Star Trek: The Motion Picture, Director's Edition DVD, Pitch Black, Dracula 2000, Star Trek: Enterprise, Roughnecks: Starship Troopers, Star Trek: Voyager, Star Trek: Deep Space Nine, The X-Files, The Family Guy, Ally McBeal, Dune: The Miniseries, Dawson's Creek and Family Law. Recent game titles include Deus Ex, Serious Sam I and II, Twisted Metal: Black, Civilization III, Unreal, Quake 3 Arena, Moto Racer World Tour, Giants for PS2, Baldur's Gate II, EverQuest, Planescape: Torment, Dead To Rights, and Escape From Monkey Island. Contact NewTek at 5131 Beckwith Blvd, San Antonio, TX, 78249. Phone: 210-370-8000, fax: 210-370-8001, website: http://www.newtek.com or http://www.videotoaster.com.

· 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.