Press Release

REALLUSION AND HI RESHAPE MOBILE EXPERIENCE
Soon users will be able to enjoy a new multimedia experience
with file interchange between PC and mobile handsets

(San Jose, CA) August 2, 2005 - Reallusion, a leading developer of animation and graphic software, announced today a new technical integration and co-marketing partnership with HI CORPORATION (Headquarter: Meguro-ku, Tokyo, hereinafter "HI") The combined technologies of Reallusion and HI will bring a brand new experience enabling mobile users to easily export 3Danimation, facial and character animation to HI's MascotCapsule® file format from the PC to the mobile devices.

Reallusion's animation software series including CrazyTalk™ (animated talking heads from any 2D photo), CyClone™ (full body animation with personalized facial images), and WowScreens™ (interactive mobile content interface), will be expected to work directly with MascotCapsule® 3D graphics engine to enable users a seamless process of exporting PC software output files to any MascotCapsule® enabled mobile phones. With a current installed base of over 70 million handsets worldwide, and a forecasted additional 50 million handsets annually, users are assured of compatibility on most graphics capable handsets, and the ability to enjoy a new level of animated interaction on their mobile phones.

"End users will be the biggest winners with Reallusion's and HI's partnership. Together we are ushering in a whole new era of simplified creation of personalized mobile content" stated Charles Chen, Reallusion's CEO. "The combination of the strength of both HI and Reallusion will certainly reshape the mobile experience." said Kazuo Kawabata, President and CEO of HI.

Reallusion and HI are also working toward integrating their respective technologies to take advantage of new multimedia features being designed into the next generation of handsets that allows users and content developers to more easily create and enjoy 3D, facial and character animations. The integration effort will not be limited to only the connectivity between PC and handsets, but also extend to Carrier related services, ensuring the best mobile experience for the end user.