eyeon Software and NewTek Announce New 3D Graphics and Compositing Software Solution

Digital Fusion® and LightWave 3D® Combine for Powerful Graphics, Animation and Effects for Film and Video at a $1500 Savings

TORONTO, CANADA, SEPTEMBER 26, 2002-- eyeon Software Inc., innovators of award-winning 2D compositing and image processing software, and NewTek, Inc., manufacturer of industry-leading 3D animation and video products, today announced a new special bundle offer of eyeon's Digital Fusion® and NewTek's LightWave 3D®. The offer price of $4995US represents savings of $1595US over the combined suggested retail pricing of the two products. The new software bundle joins two previous offerings announced last week, one pairing eyeon's DFX+ with a special edition of NewTek's VT[2], and the other teaming Digital Fusion 4 with VT[2] and LightWave 3D®.

"This has been a long time coming," said Joanne Dicaire, Sales and Marketing Manager for eyeon Software "We've had many customers over the years ask if we could do something between our two product lines. eyeon is very pleased to work with NewTek in developing a production bundle that supports the already well-known relationship between Digital Fusion and LightWave®."

Digital Fusion is a dynamic 2D compositing solution offering endless customization and a vast array of features and toolsets. Digital Fusion's latest enhancements include 8, 16 or 32 bit floating point color processing, cluster rendering, advanced ram caching with real-time playback, grid warping, and a fully redesigned tracking tool that boasts unlimited tracking points, enhanced image stabilization and match moving. Command line scripting provides automation of time consuming and repetitive tasks, allowing the artist to work with ultimate efficiency.

"Digital Fusion and LightWave® have always been our primary compositing and 3D applications" said Dan Novy, Digital FX Technical Supervisor, Flash Film Works. "Digital Fusion speeds up our production cycle by allowing us to tweak content we created in LightWave®. Digital Fusion enhances our image quality and offers us quick solutions for finishing 3D content, as well as provides us with the ability to do seamless live action integration. We do a lot of work in High Dynamic Range formats like .hdr and tif -log-luv, which LightWave® handles natively and now Fusion does as well. Considering that and the RTV File support and FLX image support available in the latest version of Fusion, this bundle is going to be a powerful production tool."

LightWave 3D® is the innovative package that introduced an amazing array of features that other 3D packages subsequently adopted. LightWave 3D® includes the most comprehensive set of 3D production tools out of the box of any major 3D package, as well as powerful features for easy integration into any production pipeline. LightWave®'s built-in renderer is an acknowledged standard, often substituting for the native renderer in other packages, and is versatile enough for completely photoreal renderings and for beautiful simulation of traditional animation and painting techniques. LightWave®'s Modeler is often cited as the best polygonal modeler in the industry and also often substitutes in pipelines for the built-in modeling tools of other 3D packages.

"LightWave 3D®'s state-of-the-art 3D toolset and the high-end compositing capabilities of eyeon's Digital Fusion® are an ideal combination for professional film and broadcast graphic artists," said Andrew Cross, NewTek's Senior Vice President of Engineering. "We're very excited to partner with eyeon in offering a bundle that provides a powerful, complete, and affordable suite for 3D and 2D visual effects, animation, and motion graphics for both studios and independent artists."

Pricing and Availability:
The Digital Fusion/LightWave 3D® bundle will be made available October 1st through NewTek's authorized resellers and distributors, as well as through eyeon's channel of authorized resellers and distributors. Manufacturer's suggested retail pricing for the bundle is $4,995US.

Additional eyeon/NewTek bundles: VT[2] Graphics Systems including eyeon Software will be available October 1st through NewTek's channel of authorized resellers and distributors worldwide. NewTek and eyeon Software product options include:

• VT[2] Graphics System: Video Edition (introductory price - limited time offer)
  VT[2] with Digital FusionX+ and Modules 1, 2, 3, 4, 6 and 7 for $2495US
  
• VT[2] Graphics System: Film and High Def Edition
  VT[2] with Digital Fusion 4 and LightWave 3D® for $5995US

The Digital Fusion and LightWave 3D® bundle, as well as the VT[2] Graphics System bundles, will be showcased throughout the U.S. and Canada in the NewTek Next Dimension Tour beginning October 3rd. To find the tour stop nearest you, visit NewTek's web site at http://www.newtek.com/nextdimension. To locate the authorized reseller nearest you, see http://www.newtek.com/dealers/index.html.

Manufacturer's list pricing for Digital Fusion® 4 is $4,995US full version and $495US for Digital Fusion4 upgrade from Digital Fusion 3.1. Price for upgrades to Digital Fusion4 from Digital FusionX+ vary depending on module configuration. Digital Fusion® 4 is expected to ship in October 1, 2002. Please see www.eyeonline.com for more information.

VT[2] MSRP is $2995.00US, LightWave 3D® MSRP is $1595.00US, and Aura Video Paint MSRP is $895.00US. Products are available now at any authorized NewTek reseller. To locate the reseller nearest you, see http://www.newtek.com/dealers/.

About eyeon Software
eyeon Software is dedicated to providing the best possible solutions for creative desktop visual effects of leading production formats. Drawing upon their expertise in film special effects and commercial broadcast production, the creators at eyeon continue to develop qualitative tools to suit realistic working environments, with outstanding product support at no additional charge.
Website: http://www.eyeonline.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 the 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. Contact NewTek at 5131 Beckwith Blvd, San Antonio, TX, 78249. Phone: 210-370-8000, fax: 210-370-8001, website: http://www.newtek.com/

Digital Fusion and LightWave® Used Together
Digital Fusion and LightWave 3D® have been used together on films and TV shows like Birds Of Prey, Death to Smoochie, Collateral Damage, Star Trek: Voyager, Sliders, commercials for Airwalk, On-Star, music videos by Janet Jackson, Backstreet Boys, and Papa Roach, and more.

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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.