Bavaria Film Digital Invests in Discreet Logic's VAPOUR Virtual Set; Premier Broadcast Production Facility Adds Third VAPOUR License to Expand Capabilities.

MONTREAL--(BUSINESS WIRE)--Jan. 30, 1997--Discreet Logic Inc. (NASDAQ:DSLGF) today announced that Bavaria Film Virtual Studios in Munich, one of the largest production facilities in Europe, has purchased its third license of VAPOUR, Discreet Logic's virtual set system. The new system shipped in January 1997.

Mr. Siegfried Numann, vice president at Bavaria Film Virtual Studio, commented, "We added the third license because VAPOUR is a proven technology in our broadcast environment. Since we installed it in February 1996, VAPOUR has provided us with state-of-the-art visual computing without the constraints of a separate physical set for each show. We can be as creative as we want and broadcast multiple programming within the same space. We have been using the VAPOUR virtual set to produce a variety of programming, including `Focus TV,' a one hour weekly info-tainment show for PRO7, a large private television station in Germany."

Bavaria Film Virtual Studios currently boasts an eight-by-eight metre blue screen cyclorama and three thoma precision camera heads running on Silicon Graphics Onyx InfiniteReality workstations. Two of the cameras are fixed position with sensors tracking pan/tilt/zoom/focus/elevation. The third camera is a full motion camera rig complete with sensors, on a set of curved tracks. The tracks run around the whole front of the blue screen, covering an area of approximately eight by three metres. This innovative use of cameras allows Bavaria Film to take full advantage of the 3D perspectives available in VAPOUR, allowing wide screen shots that can be significantly wider than physical blue screen space.

Bavaria Film have taken full advantage of the open architecture of Discreet Logic's VAPOUR through SPARKS, a plug-in for VAPOUR via Discreet Logic Applications Programming Interface (API). They have developed their own proprietary SPARK, which has extended their in-house capabilities to enable data to be recorded from each of the cameras then re-inserted into VAPOUR. This data can then be used to render, or process, new imagery frame by frame to the STONE disk array as a post production process. This allows much more realistic 3D effects than can be achieved in real time.

Bavaria Film Virtual Studios have used or are currently using VAPOUR Virtual Sets to broadcast the following varied productions, all using the same blue screen physical space:

-- "Frontal," a weekly information magazine for the ZDF network, hosted by the German personalities, Mr. Hauser and Mr. Kienzle. This is the very first time that ZDF, one of the two German public TV channels, will actually use Virtual Set technology on a regular basis. "Frontal" involves filming `VIP' guests, such as politicians or famous actors, in different locations at different times and then bringing them together within the blue screen to create the illusion that they are actually together in the studio.

-- A recent commercial for Audi Cars.

-- Bayerische Vereinsbank, one of Germany's largest banks, broadcasts a daily corporate update live from the Munich virtual set studio via a satellite up-link. This broadcast is beamed into all the banks' branches before the financial markets open. The broadcast can also be accessed from PCs via the Internet using a web browser with video streaming software.

-- A pilot for "Zeitspiegel" (Time Mirror) a weekly current affairs show.

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Graham Sharp, vice president of sales and marketing at Discreet Logic commented, "We are extremely pleased that such a high caliber broadcast production facility such as Bavaria Film Virtual Studios has chosen to further invest in Discreet Logic's VAPOUR technology. German commercial broadcasters have paved the way for Virtual Sets by using this technology as early as April 1995. Bavaria Film's varied applications of VAPOUR have shown the value -- creative and economic -- that a virtual set provides."

Bavaria Film Virtual Studios became a Discreet Logic customer in January 1996 with the purchase of Discreet Logic's FLAME and INFERNO visual effects systems. Bavaria Film Virtual Studios are located at Geschaftsbereich Video, Bavariafilmplatz 7, Geiselgasteig/Grunwald, Germany.

About VAPOUR

VAPOUR is being used daily around the world to enable broadcasters to increase the impact and effectiveness of broadcast content. It enables broadcasters to expand their creativity, experiment with combining live actors and talent with computer generated backgrounds, objects and imagery. VAPOUR enables multiple programs to be broadcast from a single blue screen environment, bypassing the need to build costly physical sets for each program or special broadcast. Communications and reporting, as well as weekly programming for news, talk shows, sports and live event coverage, can present information more visually and can often bring the information to life for audiences. Programming at the concept stage is now freed from traditional constraints.

VAPOUR is Discreet Logic's virtual set creation system for innovative and proven broadcast production. The sophisticated software system works in conjunction with a blue screen studio and one or more cameras which are calibrated for synchronized movement between the real and virtual worlds. VAPOUR, which runs on powerful Silicon Graphics Onyx workstations, supports a wide variety of camera systems, and offers producers enhanced creative freedom in productions.

With over 2000 hours on air, VAPOUR boasts a wide range of multi-camera installations worldwide. In Germany, five live programs use VAPOUR - SZM with "Hugo," a children's game show on Kabel 1 (a four hour weekly show), the "18:30 Daily News" on SAT.1 (daily), "Sport" on PRO7 (daily), "Sport Extra" (a three hour weekly show) and "Cine Magazin" a 45 minute weekly film review show on Premiere. GTE Mainstreet (LA) and Nickelodeon (UK) also use VAPOUR for children's and interactive programming. Canal + (Paris) leveraged VAPOUR for its broadcast of the Centennial Olympic Games and NRK used VAPOUR for the Eurovision Song Contest.

About Discreet Logic

Discreet Logic, based in Montreal, Quebec, develops and supports non-linear, on-line, digital systems for creating, editing and compositing imagery and special effects for film, video, audio and broadcast. The Company's systems are used by creative professionals for a variety of applications: feature films, television programs, commercials, music videos, interactive game production and live broadcasting. Through direct contact with digital artists, editors, audio engineers, production and broadcasting specialists, Discreet Logic offers technology designed to meet the present and future needs of content creators. Discreet Logic is publicly traded on Nasdaq under the symbol DSLGF. -0-

Note to Editors: For more information please contact Discreet Logic Corporate Headquarters: 5505 boul St. Laurent, bureau 5200, Montreal, Quebec, Canada H2T 1S6. Tel: [phone]; Fax: [phone]. e-mail: [e-mail]; web: discreet.com

Discreet Logic, VAPOUR, FLAME, INFERNO, STONE, and SPARKS are trademarks of Discreet Logic Inc. Silicon Graphics and Onyx are registered trademarks and InfiniteReality is a trademark of Silicon Graphics, Inc. All other trademarks are the properties of their respective owners.

CONTACT: Discreet Logic

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