Cycore, the Leader in 3D for E-commerce, Acquires PuppetTime, a Unique 3D
Entertainment Software Developer

Purchase of 3D Innovator Part of Company's Web 3D Strategy to Expand Beyond
e-Business into 3D Entertainment for the Web

SAN MATEO, Calif., (July 27, 2000) - Cycore, the leader in interactive 3D
for e-business, today announced that it is acquiring PuppetTime, a San
Francisco-based developer of cutting-edge 3D storytelling technologies.
The acquisition allows Cycore, the creator of Cult3D, to add powerful 3D
character animation to its portfolio of technologies that bring 3D to
mainstream business and entertainment.

PuppetTime Producer is an easy-to-use 3D character animation program that
allows Web developers to create compelling 3D movies in minutes. With an
underlying "cast" of digital actors - or puppets - the user can self-direct
their own movies by simply selecting a digital actor, typing dialog,
recording sounds and voice-overs, and choosing actions and emotional
states. Users of PuppetTime require no animation or 3D modeling experience
because the puppets and their characteristics are pre-defined.

"The entire Web 3D community recognizes the need for easy-to-use content
creation tools," said Deeje Cooley, founder of PuppetTime. "Joining Cycore
brings us closer toward a shared vision of 3D for the mainstream.
Together, our technologies allow users to easily create narrative 3D
content that renders beautifully across the Internet for e-business and web
entertainment."

Cult3D software enables users to create compelling interactive 3D images
for product visualization in e-commerce, customer service and product
presentations on the Web and in desktop applications. Viewers can zoom,
rotate and interact with a product model at the click of a mouse, virtually
holding it in their hands. Cycore recently introduced version 5.0 of
Cult3D, which allows users to insert 3D graphics into any Microsoft Office"
or Adobe" Acrobat" (PDF) document.

PuppetTime can be used in a wide range of applications on the Web and
desktop, including the creation of storyboards and animatics to
pre-visualize ads, commercials and TV shows and the animation of corporate
"spokespeople" for sales and marketing on the Web. Cycore plans to
integrate PuppetTime technology into future versions of Cult3D to create a
full-featured interactive 3D modeling and animation software package that
will be easy to use and accessible for a wide range of e-business, sales
and marketing, customer support and entertainment applications.

"The acquisition of PuppetTime fits perfectly with our strategy of being
the company that brings 3D into mainstream Internet applications, including
e-commerce and entertainment," said Bengt Starke, CEO of Cycore. "Imagine
going online to shop for a new PDA or laptop computer and being able to
interact with the product using our Cult3D technology, while at the same
time asking a PuppetTime 'virtual salesperson" to describe a specific set
of product features. It opens up a whole new realm of possibilities for
transforming business from a flat, two-dimensional environment into a rich,
lively, easy-to-understand 3D world."

Specific financial terms were not disclosed.

About Cycore

Cycore is the leader in interactive 3D software for e-business. Cycore
Cult3D software is an award-winning product visualization technology used
on Web sites, in Microsoft Office documents and in Adobe Acrobat files
to help e-businesses increase online sales, enhance sales presentations and
improve customer service. More than 250 brand-name companies, including
Palm, NEC, Canadian Broadcasting Corporation, ABB, and Toyota use Cult3D on
their Web sites. Cycore also produces Cult Effects, a set of powerful
special effects filters for film and video post-production. The company
was founded and maintains headquarters in Sweden, with offices in the US,
Canada, UK, and Germany. For more information please visit
http://www.cycore.com.