Press Release

For Immediate Release

HI CORPORATION and CyberExtruder reach basic accord for technology and marketing cooperation in Japan market.

Aug. 27, 2002 (Tokyo, Japan)-Mobile 3D rendering technology pioneer HI CORPORATION (head office: Meguro-ku, Tokyo; President & CEO: Kazuo Kawabata; paid-in capital: 139.25 million yen) and Cyber-X 3D technology developer CyberExtruder, Inc. (head office: New York; CEO: Larry Gardner), have reached basic terms of an agreement for joint marketing and application development in Japan.

With head offices in the State of New York, U.S.A., CyberExtruder is principally a developer of 3D graphics rendering technologies, and owns the patent-pending Cyber-X 3D technology. With superior face rendering and effects, CyberExtruder's Cyber-X 3D technology converts a single two-dimensional (2D) portrait (like a passport photo) into a fully developed three-dimensional (3D) model in seconds. The company operates a service at www.cyberextruder.com that allows people to personalize game characters of Max Payne (http://www.panda.co.jp/maxpayne/) and The Sims with their own portrait photos.

HI CORPORATION maintains Mascot Capsule Engine as its principal product. This 3D rendering engine already has a record of implementation on J-PHONE and NTT DoCoMo 504i mobile handsets, represents the de facto standard 3D rendering engine for the mobile industry, and has gained wide acceptance among mobile users.

As party to the agreement HI CORPORATION will leverage its expertise and experience in the mobile 3D applications market, and supply a base to market applications and services developed with Cyber-X 3D technology. CyberExtruder will continue developing its technology to meet the animation-like preferences in Japan for 3D facial rendering and effects, and subsequently support application development for the two companies.

Through this collaboration a service, for example, can be developed where digital portrait photos are taken by "Sha" mail (J-PHONE) and "i-shot" (NTT DoCoMo) functions on mobile handsets and transmitted to a service bureau that creates 3D characters for screensavers or personalized email attachments.

The agreement provides for the companies to cooperate in successfully driving the business forward in Japan, and gives HI CORPORATION exclusive rights for using the developed technology in Japan. HI and CyberExtruder plan to jointly plan and develop their first application within the year, and to explore additional business opportunities together for Japan and other Asian markets.