Bongo to Increase Web Presence With the ModaCAD E-Business Virtual Shopping Mall.

LOS ANGELES--(BUSINESS WIRE)--July 24, 1998--ModaCAD Inc. (Nasdaq/NMS:MODA) Friday announced that it has signed an agreement with Bongo, a leading manufacturer of moderately priced fashion denim and a growing range of sportswear, to participate in ModaCAD's upcoming e-business virtual shopping mall, which is being co-developed with Intel Corp., and will be published by the Sierra Home division of Sierra On-Line Inc., a subsidiary of Cendant Software Corp.

ModaCAD's online fashion solution, which is specifically targeted at young women between the ages of 15 and 28, is intended to service the e-commerce market segment by acting as the conduit by which manufacturers and retailers can begin to conduct daily retail business electronically with their customers.

The solution will feature a photo-realistic 3-D rendered virtual shopping mall that will enable consumers to experiment with creating a complete wardrobe of clothing, shoes and accessories in a personalized interactive environment.

Joyce Freedman, chief executive officer of ModaCAD, said: "Participation on our product will work in conjunction with Bongo's new consumer advertising campaign and interactive Web site, scheduled to be relaunched in August. ModaCAD's e-business virtual shopping mall will direct girls to its site, increase Bongo's promotional presence on the Web and help consumers locate the nearest retailers which carry Bongo products."

According to Linda Reeves, vice president of marketing at Bongo: "We have been impressed that the product satisfies a void in the marketplace by providing a fun and compelling computer experience for young women. We see this innovative product as an ideal way of reaching our target demographic.

"As a leading-edge manufacturer we are excited about communicating to our consumer in this innovative way. ModaCAD and Intel's co-developed e-business virtual shopping mall is a creative and entertaining experience that also educates our consumer about our product and exposes her to our branding message."

Bongo has been a manufacturer of junior denim and sportswear for 15 years. In 1996, under license with Candie's, Bongo launched a successful line of footwear and recently granted Candie's the license to produce a line of Bongo handbags.

Bongo also announced licensing agreements this month with M. Fine & Sons for children's apparel and with Jenna Lane for women's plus- size denim and sportswear. Bongo's products are sold at department stores, footwear and apparel specialty stores such as Wet Seal/Contempo, Burdines, Sears, JC Penney's, Nordstrom, Macy's East and Body Shop, among others.

ModaCAD is rapidly becoming a premier developer and supplier of digital content management technology enabling advanced product visualization for electronic commerce. For the past 10 years, it has leveraged its core, patented rendering technology into a variety of electronic merchandising products primarily targeted at the home-design, home-furnishings, apparel and industrial-design industries.

    CONTACT: ModaCAD Inc., Culver City, Calif.
              Gail Laguna, [e-mail]
              Linda Freedman, [e-mail]
              310/751-2100
              310/751-2120 (fax)
              http://www.modacad.com