SOFTIMAGE INCREASES FOCUS ON GAME DEVELOPERS WITH NEW PRODUCTS AND
PROGRAMS

New Release of Softimage 3D Includes Key Game Development Features,
Increased Support for Leading Game Platforms

LOS ANGELES - MAY 16, 1996 - At the Electronic Entertainment Expo (E3)
today, Softimage Inc., a wholly owned subsidiary of Microsoft Corp.,
announced new products and programs that will make it easier for game and
interactive content developers to produce the industry's highest-quality
3-D graphics animations and imagery. These include a new release of
Softimage 3D with more powerful, cutting-edge game development tools,
enhanced data import and export capability with popular game-play
platforms and file formats, and a robust application development
environment for creating plug-in applications.

"What Softimage has done for feature-film visual effects, this new release
of Softimage 3D will do for game development," said Daniel Langlois,
founder of Softimage and senior director at Microsoft. "Softimage 3D
version 3.5 is loaded with new, innovative tools that will make it easier
and faster for developers to create visually amazing games."

Softimage 3D version 3.5 will help developers quickly produce both
high-quality real-time rendered characters and high-resolution
introduction scenes for games and interactive titles. Benefits include the
following:

* Advanced polygon and color reduction tools improve run-time performance
of models while retaining image quality. In the new release of Softimage
3D, these tools automatically maintain the best ratio of complexity vs.
quality and preserve texture and material boundaries.

* A new texture editor allows customers to paint on 2-D textures and see
the results applied immediately to 3-D models. Also, customers can edit
select textures interactively.

* Polygon, patch and NURBS modeling offers the industry's most complete way
to create characters.

* New inverse kinematic features enable more lifelike movement of
characters.

* Softimage 3D includes more than 100 MB of motion-capture data, such as
fighting, dancing and sports sequences, that can be used to animate
models.

* Geometry, materials, textures and animations can be imported and exported
into the most popular file formats, including Sega Saturn, PlayStation
game consoles, the Direct3D API and VRML. Game developers for Softimage 3D
can also view on target with Sega Saturn systems.

* Softimage 3D (Extreme version) includes enhanced particles and the mental
ray distributed rendering system with hundreds of ready-to-use effects
such as rain, fire and smoke.

* Included are particle, shader and motion-capture libraries that can be
used to create hundreds of visual effects. These libraries will be updated
continually at no charge on the World Wide Web.

* Softimage Live viewing technology allows developers to quickly and easily
produce prototype games in an interactive environment.

* Support for IntelR PentiumR Pro, Alpha and MIPS R4400-based workstations
and servers, based on the Microsoft Windows NT operating system and
Silicon Graphics systems, offers developers the widest range of hardware
platform choices.

In addition, game developers can take advantage of Softimage's powerful new
software development kit (SDK) to create plug-in applications. The
Softimage SDK is a comprehensive API that allows direct access to
modeling, animation, rendering and motion-capture controls in

Softimage 3D. Applications can stand alone or be fully integrated into
Softimage 3D. In addition, to help bolster a community of plug- in
applications, Softimage introduced the Softimage Developers Connection
program in February. Through this program, qualified developers and
customers receive extensive technical support and development software, as
well as support in marketing their applications.

The new version of Softimage is offered in two packages: Softimage 3D and
Softimage 3D Extreme. Softimage 3D includes all modeling, animation and
rendering features, except meta-clay modeling, particles, mental ray and
Softimage Live, which are available in Softimage 3D Extreme. Softimage 3D
and Softimage 3D Extreme for Silicon Graphics systems are available today;
versions for Intel Pentium Pro, Alpha and MIPS R4400-based workstations
and servers for Windows NT are scheduled to be available in August.

The approximate price for Softimage 3D is $7,995 (U.S.); Softimage 3D
Extreme is approximately $13,995 (U.S.). Customers licensing Softimage 3D
version 3.0 for Windows NT after May 16 will receive a no-charge upgrade
to Softimage 3D version 3.5 when available. Pricing is per concurrent
user, and licenses can be used on either the Windows NT or Silicon
Graphics platform. Other upgrade prices vary. Licensed users of Softimage
3D version 3.5 (both configurations) can purchase standalone mental ray
rendering seats with prices starting at approximately $2,495 per seat.
Registered developers for PlayStation game consoles and Sega Saturn can
license import and export kits for approximately $995 (U.S.) each. All
products are available through Softimage's network of authorized
resellers.

Founded in 1986, Softimage develops software for media-rich applications
including video, film, interactive games and CD-ROM applications. Products
include Softimage 3D (high-end modeling, animation and rendering),
Softimage Eddie (compositing) and Softimage Toonz (2-D cel animation). The
company was acquired in 1994 by Microsoft Corp. Additional information
about Softimage and Microsoft can be found via the Internet at
HTTP://WWW.SOFTIMAGE.COM/ and http://www.microsoft.com/ respectively.

Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in
software for personal computers. The company offers a wide range of
products and services for business and personal use, each designed with
the mission of making it easier and more enjoyable for people to take
advantage of the full power of personal computing every day.
 
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