Applied Science Fiction Announces New Management Leadership; Company Names New Chairman and President & CEO To Accelerate Growth.

Business Editors & High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--July 21, 2000

Applied Science Fiction, Inc. (ASF), the leader in digital imaging enhancement and correction technology, announced today the new leadership of its management team and staff to facilitate the company's growth.

Board member Peter Palermo has been appointed chairman, and ASF executive vice president Dan Sullivan was named president and CEO. ASF co-founder Mark Urdahl has resigned as chairman, president and CEO in order to pursue other opportunities.

"I am looking forward to working with ASF's board of directors and management team to help drive future growth and profitability," Mr. Palermo commented. "I am confident that our existing senior management team has the ability to accelerate the company's growth to meet its near and long-term goals. I will work closely with Dan Sullivan, Bob Sleet, Jerry Johnson and Dana Seccombe to ensure that we continue to utilize our superior technology to develop commercially viable and innovative products."

Mr. Sullivan added, "This transition in leadership will help catapult ASF to the next level of productivity. As president and CEO, I am pleased to lead such an outstanding group of executives and staff. I believe they will continue to help build the company and guarantee its success."

In addition to his role as ASF's chairman, Mr. Palermo is chairman and CEO of Strategic Triangle, Inc., a New York based international management consulting firm specializing in assisting CEOs and their management teams in the analysis, development and implementation of successful strategic alliances.

Mr. Palermo retired from Eastman Kodak Company in December 1993 after a highly successful career, holding a variety of domestic and international senior management positions including corporate vice president and general manager of Kodak's Global Consumer Imaging Business and Kodak's first chief marketing officer and senior vice president of Imaging.

Prior to his position as ASF's president and CEO, Dan Sullivan was the company's executive vice president of intellectual property (IP), strategy and administration. In this position, Mr. Sullivan was responsible for protecting the IP of ASF, establishing licensing guidelines and formulating the corporate strategy. Mr. Sullivan will continue to be responsible for these areas.

Mr. Sullivan previously served with IBM as vice president of their Asia Pacific Technical Operations (APTO) division. While with APTO, Mr. Sullivan played a key role in the formation of a unified Digital Versatile Disc (DVD) format and facilitated digital copyright protection agreements with the motion picture, recording, consumer electronics and computer industries. Mr. Sullivan also served as director of licensing development for IBM, specializing in technology licensing and alliance development.

ASF's executive management team:

Bob Sleet is ASF's executive vice president and CFO, overseeing and helping to direct the company's financial future. Mr. Sleet comes to ASF from Sprint PCS, where he served as vice president and treasurer.

Jerry Johnson is ASF's executive vice president in charge of worldwide sales, marketing and licensing operations, responsible for the branding and proliferation of the company's technologies. Mr. Johnson comes to ASF from Kodak, where he served as vice president and general manager of Kodak's U.S. and Canadian Consumer Imaging Business.

Dana Seccombe is executive vice president of research and development for ASF and in this capacity, he oversees the development of new and existing ASF technologies. Mr. Seccombe comes to ASF from Hewlett-Packard (HP), where he served as vice president of HP and general manager of the Ink Jet Supplies Business.

Dr. Al Edgar, co-founder and chief scientist, will remain in his position, helping to develop revolutionary technologies to add to the company's IP portfolio. Additionally Sada Cumber, co-founder of ASF, will continue in his role as consultant to the company.

About Applied Science Fiction:

ASF develops proprietary technologies for the imaging industry that link traditional photography with the digital age. ASF licenses and brands its technologies through Original Equipment Manufacturers (OEMs) that provide products for professional, retail and consumer imaging markets.

ASF offers Digital ICE(TM) (Image Correction and Enhancement), which works from within a scanner to automatically remove surface defects, such as dust and scratches, on scanned images without altering the base image. ASF also offers Digital ROC(TM) (Reconstruction of Color), which works to restore the color quality of an image, regardless of the condition of the original, and Digital GEM(TM) (Grain Equalization and Management), which combats graininess in film to greatly enhance the visual impact of resulting scanned images.

More information about ASF's products and management team can be found on ASF's Web site at www.asf.com.

*Digital ICE, Digital ROC, Digital GEM, ASF and Applied Science Fiction are trademarks of Applied Science Fiction, Inc. All other trade names, trademarks and registered trademarks are the property of their respective owners.