C-3D Digital Announces Record First Quarter Results; Quarterly Revenues Increase 755%.

SALT LAKE CITY--(BUSINESS WIRE)--Aug. 25, 1999--

Chequemate International Inc. (AMEX:DDD), doing business as C-3D Digital Inc., the world's first 3D television and Internet Media Company that gives broadcasting and entertainment companies the ability to deliver 3D entertainment to any standard television 24 hours a day, announced today its results from operations for the first quarter ended June 30, 1999.

Revenues for the quarter ended June 30, 1999 increased 755% to $767,009 as compared to $89,748 reported for the prior year period. Net loss for the quarter was $1,975,126, or $.09 per basic and diluted share, as compared to a net loss of $513,981, or $.03 per basic and diluted share, reported for the fourth quarter of fiscal 1999.

Additionally, sequential revenues for the quarter ended June 30, 1999 were up 220% as compared to $239,447 for the quarter ended March 31, 1999, and losses per share narrowed from $.13 in the fourth quarter to $.09 for the first quarter of fiscal 2000.

During the quarter, C-3D aggressively pursued its position in 3D entertainment on television and the Internet. In early June, the company attended the National Cable Television Association's (NCTA) show in Chicago where it introduced its exclusive 3D television channel to numerous cable operators, hardware manufacturers, and others involved in the cable industry.

Additionally, the company continued in negotiations with major hotels throughout the country to deliver its 3D channel to hotel guests via pay-per-view offerings. Although these activities have resulted in large initial expenses, the company is already starting to realize significant results from its marketing efforts.

For example, VisionComm, a multi-system cable operator ("MSO") recently began marketing C-3D's 3D channel to its subscribers throughout Texas, California, Missouri, and Michigan. Also, more than 8,000 hotel rooms throughout Arizona, Idaho, New Mexico, Texas, Utah, Washington, and California are already offering the company's pay-per-view selections to guests. C-3D is also continuing in negotiations with major cable TV operators throughout the United States and abroad to distribute the company's 3D network offerings.

C-3D Digital is also realizing significant revenues from its Strata computer software product line. The Strata tool line has been used for such well-known projects as the game "MYST" and in producing films such as "Contact", "The 5th Element", and "Batman Forever".

In addition to its 3D television network and pay-per-view offerings, the company plans to launch the world's first Virtual Reality Portal in the latter half of 1999. This portal is being designed by the new 3D.Com division which was formed from combining the Strata team with C-3D Digital's own internal Web division. This portal will allow visitors to "go in" rather than just "go to" the Web.

Commenting on C-3D Digital's operating results, the company's chairman and chief executive officer, J. Michael Heil stated "We are very pleased with the large revenue increase that we were able to generate in the first quarter, and we are encouraged about the continued response from Cable TV and Pay-per-View providers to deliver our channel to their customers. Being that we are still in our launch phase and are negotiating with cable and satellite operators not only in the U.S., but also abroad, we expect to continue to expend large sums on related marketing efforts over the next several quarters. However, given the huge success of recent efforts in conjunction with the interest we have received regarding our various product offerings, we are very encouraged about our prospects for the future."

About C-3D Digital

C-3D Digital Inc. is a leading 3D media company that gives broadcasting and entertainment companies the ability to deliver 3D entertainment to any standard television 24 hours a day. As the leading innovator of 3D-entertainment technology, C-3D Digital is the first television network to offer 3D programming exclusively to satellite and cable television subscribers. The company also offers its customers and networks subscribers the ability to convert 2-dimensional films or programming into real-time 3D. The company also has an Internet subsidiary company, 3D.COM. The company maintains offices in Los Angeles; St. George, Utah; Phoenix; and Salt Lake City.

This news release includes forward-looking statements that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Acts of 1995. While these statements are made to convey to the public the company's progress, business opportunities, and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. While management believes such representations to be true and accurate based on information available to the company, actual results may differ materially from those described. The company's operations and business prospects are always subject to risk and uncertainties. Important factors that may cause actual results to differ are set forth in C-3D Digital's periodic filings with the U.S. Securities and Exchange Commission. All filings can be found under Chequemate International DBA C-3D Digital Inc. in the Edgar filings with the SEC. -0-

                          C-3D Digital Inc.
                       Statements of Operations

                                        Three Months Ending June 30
                                            1999            1998

Revenues                            $    767,009    $     89,748

Cost of sales                            332,949          28,134

Gross profit                             434,060          61,614

Selling, general,
 and administrative expenses           2,326,181         572,791

Income (loss) from operations         (1,892,121)       (511,177)

Interest income (expenses), net          (83,005)          2,804

Income (loss) before taxes            (1,975,126)       (513,981)

Provision for income taxes                     0               0

Net income (loss)                   ($ 1,975,126)   ($   513,981)

Net income (loss) per
 common share                             ($ .09)         ($ .03)

Weighted average number of
 basic and diluted common shares
 outstanding                          22,656,646      16,050,274