STEREOGRAPHICS SIGNS MULTI MILLION DOLLAR DISTRIBUTION AGREEMENT WITH
NISSHO ELECTRONICS 

True 3D Product Line Slated for Japan

San Rafael CA -- March 8,1993 -- StereoGraphics Corporation today announced
a multi-million dollar distribution agreement with Nissho Electronics
Corp., Tokyo, Japan, establishing StereoGraphics as the foremost provider
of true three-dimensional electronic stereoscopic viewing products in
Japan. StereoGraphics is the world's largest supplier of 3D computer and
video equipment.

The agreement gives Nissho distribution rights to the Japanese market for
StereoGraphics' entire product line, based on the Crystal/Eyes viewing
system, which enables users to see computer and video images in true 3D
stereo. Applications for StereoGraphics products include video production,
endoscopic surgery, virtual reality, entertainment, manufacturing and
design engineering.

"The commitment by Nissho Electronics to provide StereoGraphics Corporation
products in the Japanese market is a key strategic development in
implementing our plans for worldwide distribution of our products," said
Gary Fette, director of sales for StereoGraphics. "Stereoscopic viewing is
already a well known technology in Japan and Nissho Electronics' presence
in this area can only provide additional opportunities for growth."

Nissho Electronics is a division of Tokyo-based Nissho Iwai Group, one of
the largest international trading companies in the world. The company will
target StereoGraphics' products to corporations, government, education and
end-users.

About StereoGraphics

StereoGraphics products produce stereo images by replicating the way people
view their surroundings in the real world. Because eyes are positioned a
few inches apart, each sees the world from a slightly different
perspective. The brain then fuses these images into a single image that
has true depth -- an effect known as "stereopsis."

Next to full scale models, three-dimensional color images give users the
best sense of spatial relationships because they provide accurate,
information-rich data in a visual environment. Medical imaging, molecular
modeling, scientific visualization, motion simulation, inspection systems,
remote vehicle control, MCAD/CAE and training are other applications.

A stereo image on a computer or video screen similarly contains two images,
called a stereo pair, which are delivered separately to the left and right
eye. StereoGraphics, which pioneered the process, accomplishes this with a
stereo viewing device -- Crystal/Eyes. The patented liquid crystal eyewear
is synchronized with the monitor, which alternately displays the left and
right images of each stereo pair at 120 frames per second. When the left
image is on the video screen, for example, the left lens of the eyewear
opens while the right lens closes -- thereby channeling the appropriate
image to the appropriate eye. The result is a true stereo 3D
non-flickering image. The electronics and software required to accomplish
this are also patented by StereoGraphics.

Crystal/Eyes VR (virtual reality) projects a stereo image by interacting
via an ultrasound head-tracking device creating six degrees of freedom.
The viewer interacts with the image through head movements while viewing
in true 3D, creating a startling visual experience. Crystal/Eyes VR is an
extremely cost effective implementation of virtual reality on a
workstation or PC. It is also available bundled with Sense8 Corporation's
(Sausalito, CA) WorldToolKit, a software toolkit that enables a developer
to rapidly build real-time graphics simulations and VR applications.

Crystal/Eyes VR supports various stereo-ready system platforms, including
the Sun Sparc 10GT and Sparc 2GT workstations; Silicon Graphics Reality
Engine and Crimson Elan; Hewlett-Packard models 725, 730 and 750,
Intergraph Microstation; Evans & Sutherland Freedom Series; DEC Alpha; IBM
models RS6000 and PC; and Apple Macintosh. These stereo ready computers
are also compatible with StereoGraphics eyewear and projection systems.
StereoGraphics also provides hardware solutions to convert most other
computers and workstations (including Apple) to stereo compatibility.

StereoGraphics Corp., founded in 1980 and now the world's leading
manufacturer of true stereo viewing systems, invented and developed the
market for modern stereoscopic imaging hardware. Crystal/Eyes
workstation-based products as well as StereoGraphics' complete line of
compatible stereo large-screen projection and stereo video camera system
products are available directly from the company. Due to its capability
and reasonable price, the Crystal/Eyes stereo viewing system is accepted
by the industry as breakthrough hardware technology for stereo viewing.
StereoGraphics is located at 2171 East Francisco Boulevard, San Rafael,
California 94901, phone 415/459-4500, fax 415/4593020.

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