NewTek Releases Free Update to VT[3]™

First Update for Integrated Broadcast Suite Offers Enhanced DV Support and
Improved Integration with Other Production Tools

San Antonio, Texas -- September 30, 2003 -- NewTek, Inc., manufacturer of industry-leading 3D animation and video products, today announced the release of the first update for VT [3]TM, NewTek's integrated production suite for live and post production and editing. The update is free to registered owners of VT[3], and includes enhancements to DV support and DVD authoring program support, enhanced integration with Adobe® After Effects®, and integration with Discreet®'s forthcoming combustion® 3.

"We're delighted to bring our first update for VT[3] to our users," said Andrew Cross, Senior Vice President of Engineering at NewTek. "We express our commitment to the user by providing regular product enhancements during each generation of the product, and the current update, with dozens of new features and improvements is an example of the added value we like to provide our customers."

NewTek's VT[3] is a complete suite of virtual equipment created in software - monitors, decks, switchers, waveform/vectorscopes, audio mixer and more - that provides a comprehensive toolset for all professional video production needs from network broadcast to web streaming. VT[3] provides real-time layering and effects for video and graphics in virtually any input standard or file format and operates internally in uncompressed D1 component video. NewTek's VT[3] includes integrated timeline and storyboard editing, paint, 3D modeling and animation, titling, keying, live-switching and much, much more.

"We get a huge amount of mileage out of the integration between VT[3] and AfterEffects here at the station," said Tim Johnson of KUTV Channel 2, Salt Lake City, UT. "And there are a million other things VT[3] can do besides. It's becoming one screaming finish machine. We've got more expensive systems we can only off-line on, and with VT[3]'s uncompromised uncompressed output we can online edit at pristine quality, with incredible speed and ease – just what we need in our fast-paced broadcast environment."

VT[3] Update 1 includes several enhancements to DV support, including improvements to real-time import, speedups to batch capture and increased frame-accuracy. For DVD production, VT-Edit now includes chapter markers in “wrapped-avi” files. These can be read by many of the popular DVD authoring applications. Genlock controls have been improved to support better control of H and V phase. The AfterEffects loader and saver for NewTek's proprietary uncompressed RTV format can now be used on systems without VT[3] installed, allowing users to share RTV files throughout their production environment.

"VT[3] provides me with the flexibility and capability I need to meet the needs of my diverse group of clients," says Dan Hong, of We Three Multimedia, a California-based production company. "Whether we are doing a live event or editing and post production, VT[3] has the tools and fast workflow we need for profitable production. And nothing matches the way NewTek responds to customers and delivers added value regularly in the form of updates with new features and improved performance, as well as service and support at no added cost."

VT[3] Integrated Production Suite overview:

• Ease of use - designed for professionals who need to get work done on time and on budget
• Complete suite of virtual equipment created in software - monitors, decks, switchers, waveform/vectorscopes, audio mixer and more
• Integrated timeline and storyboard editing
• Multiple layers in real-time - as many as your system can handle - not limited by the software
• Real-time keyframeable color correction and blur
• Multi-format and multi-standard editing, with standards conversion on the fly in real-time
• Real-time playback of compressed and uncompressed clips
• Native DV support, component, Y/C, and composite I/O
• Real-time 3D transitions, slow motion and reverse, chroma and luma keying
• 2D video paint with pixel tracking, filters, more
• LightWave 3D, Emmy®-winning world-class 3D graphics and animation
• Optional SX-8TM, up to 8-component or 24-composite input Switcher
• Optional RS-8TM Switcher Control Surface
• Optional SDI I/O
• Stream live events or finished productions to the Web in real-time

VT[3] Update 1 includes:

• VT-Edit includes chapter markers in “wrapped-avi” files that can be read by many of the popular DVD authoring applications.
• AfterEffects RTV loader and saver no longer require VT[3] to be installed on the machine being used. This will allow users to use their RTV files on machines other than their VT[3] station.
• Discreet Combustion 3.0 support (when C3 ships.)
• Now supports 32-bit BMP file import and PicVideo MJPEG codec.
• AVI support improved. Full support for the OpenDML, including 'drop frames', true key-frame support, extended blocks, etc...
• Recording of digital SDI audio is enabled with SDI option.
• Genlock controls improved to support better control of H and V phase.
• Real-time DV import significantly improved.
• Batch capture stores time-code settings locally to projects, and not clips.
• Batch capture frame accuracy improved significantly, including for DV devices.
• Batch capture speed significantly improved, inlcuding for DV devices.
• Background rendering cache is updated over 10x faster.
• Support for 631 RS422 protocol as used by Panasonic decks.
• Dozens more added features and improvements.

Pricing and Availability
Update 1 for VT[3] is available free for registered owners of VT[3], at http://www.newtek.com. VT[3] is priced at $2995US. Registered VT[2]™, owners may purchase an upgrade to VT[3] software for $595US. Localization is in progress for international distribution. For information on the nearest NewTek authorized reseller, see http://www.newtek.com/resellers.

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[3]™, 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 Children of Dune, Firefly, Taken, Smallville, Star Trek: Enterprise, Star Trek 10: Nemesis, Daredevil, Spy Kids II, We Were Soldiers, Panic Room, Hart’s War, Driven, A.I., Oscar®-nominated Jimmy Neutron: Boy Genius, Final Fantasy, Blackhawk Down, The Time Machine 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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• eyeon Digital Fusion and Digital Fusion are registered trademarks of eyeon Software Inc.
• LightWave, LightWave 3D and VT, are registered trademarks of NewTek.
• Aura Video Paint, and VT[3] are trademarks of NewTek, Inc.
• All other products or brand names mentioned are trademarks or registered trademarks of their respective holders.