NewTek and TVPaint Announce New Alliance

Agreement Will Bring Broadcast Video Paint Toolset to New Markets

San Antonio, Texas -- May 8, 2003 -- NewTek, Inc., manufacturer of industry-leading 3D animation and video products, and TVPaint, Inc., developer of broadcast video paint production tools, today announced that they have reached a new agreement on the development and distribution of the broadcast video paint toolset that NewTek has distributed as Aura Video Paint™. NewTek will continue to include Aura Video Paint with the award-winning VT[3]™ and forthcoming VT[3]™ broadcast production suite. TVPaint will distribute the product in standalone form under new branding.

"We're very pleased to form this new alliance with TVPaint," said Jim Plant, President and Chief Executive Officer of NewTek, Inc.. "This will allow us to focus our marketing and development efforts on our state-of-the-art VT[3] broadcast production suite and our innovative and award-winning LightWave 3D® animation software, while still including a powerful video paint module with our video production products.

TVPaint will offer upgrades to new versions of the rebranded product to owners of NewTek's standalone Aura Video Paint package. TVPaint will also continue to work with NewTek to allow NewTek to provide enhancements to Aura Video Paint as an element of current and future video production suites. From time to time, NewTek and TVPaint will work together to provide a variety of special offers as well, including bundle offerings of the two companies' products.

"We're delighted to continue our association with NewTek," said Sebastien Miglio, of TVPaint, Inc. "We're very excited as well at the opportunity to bring our video paint tool suite to market under our own banner. We have a mature and robust technology that is truly a unique offering and an indispensable complement to any production pipeline."

Pricing and Availability:
Announcements will be made in the coming weeks on pricing and availability of the new TVPaint branded products. Information will be made available to the public at www.tvpaint.com.

About TVPaint, Inc.
With headquarters in Metz, France, TVPaint is a developer of broadcast video paint production tools including TVPaint Animation and Aura TM. TVPaint set a new standard in video paint power with the release of the first 32-bit video paint software, in 1991 on the Amiga platform. TVPaint’s innovative and unique products are used around the world at all levels of production, for both personal and professional broadcast and film projects. Recent television and film projects using TVPaint software include MTV (England), Cannes film festival opening (France), Maggie Roars (Canada), Room Nearby (Canada), Shadow Skins (USA), Vito e Paniko (Italia), Bob a Bobek (Czech Republic), Cheb Mami video clip (France), EuroTunnel commercial (France). Game titles include Bambou, Gremlins for GBA and Cameron Files. Website: http://www.tvpaint.com.

About NewTek
With headquarters in San Antonio, Texas, NewTek is a leading provider of full-featured video editing, animation and special effects tools including VT®, LightWave 3D® and Aura Video Paint™. 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 television and film projects using NewTek software include Firefly, Taken, Smallville, Birds of Prey, Star Trek: Enterprise, We Were Soldiers, Panic Room, Hart’s War, Driven, A.I., Oscar®-nominated Jimmy Neutron, Boy Genius, Final Fantasy, Blackhawk Down, The Time Machine, Behind Enemy Lines and Star Trek: The Motion Picture, Director’s Edition DVD. Recent game titles include Doom III, Unreal Tournament, Serious Sam for XBox, Age of Mythology, Civilization III, Dead to Rights, Baldur’s Gate II, EverQuest and Escape From Monkey Island. Website: http://www.newtek.com

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•VT®, LightWave® and LightWave 3D® are registered trademarks of NewTek.
•VT-Edit, Aura Video Paint, LightWave® Express, VT-CG, VT-Vision VT-Scope, VT-DRR, SX-8 and RS-8 are trademarks of NewTek, Inc.
•All other products or brand names mentioned are trademarks or registered trademarks of their respective holders.