C-3D Digital Enters Into Strategic Partnership With Leading VGA Card Manufacturer; C-3D Acquires Exclusive Rights to Sell VGA Cards in North & South America.

Business Editors/High-Tech Writers

C-3D Digital Inc. (C-3D) (AMEX:DDD) (www.3d.com), a leading provider of stereoscopic 3D imagery applications and products, announced today that it has entered into a strategic partnership with Inside Telnetcom Co., Ltd (Inside TNC) (www.insidetnc.com), one of Korea's largest VGA (video graphics adapter) card manufacturers. C-3D has acquired the exclusive rights to market and sell Inside TNC's VGA cards in North and South America. Inside TNC utilizes the NVIDIA(R) chip set technologies in its VGA cards (for more information about NVIDIA Corporation see www.nvidia.com). C-3D currently utilizes the NVIDIA Detonator XP(TM) Unified Driver Architecture 3D Stereo drivers with its proprietary 3D viewing goggles, Another Eye 2000.

Inside TNC has achieved a strong revenue base in graphic card production by selling its VGA cards in Korea to Samsung Electronics and TriGem Computer, which combined hold over 70% of the PC market in Korea. As their marketing partner, C-3D will be responsible for developing a retail presence for Inside TNC's VGA cards in North and South America.

CEO of C-3D Digital, Chandos Mahon, stated, "We are extremely pleased to initiate this agreement with Inside TNC, one of our shareholders. This demonstrates a strong relationship at work. The new venture provides us entrance into the exciting VGA card market, which delivers tremendous synergies with our 3D stereoscopic product line. During the third and fourth quarter of this year, we plan to bundle Inside TNC's VGA cards with our 3D-shutter glass system in order to develop a strong retail presence in North and South America for 3D products. With our first sales order for 3,000 units already executed, we expect significant follow-on orders over the next several months. We believe that this will provide a lucrative new revenue stream for C-3D during 2002 and beyond."

About Inside Telnetcom Co., Ltd.

Based in Korea, Inside TNC manufactures VGA cards, TV cards and HDTV cards. Focusing on virtual reality as its next vision, Inside TNC is in the process of developing a strategic plan for 3D Stereoscopic Glasses and HMD (Head Mounted Display). In addition, Inside TNC established a Media Division in 2001, which has been in the SCM (Supply Chain Management) business in the field of software packages as well as resale for Microsoft's product. For additional information, visit www.insidetnc.com.

About C-3D Digitial

Through its core stereo 3D technology utilizing Virtual & Augmented Reality (V&AR), C-3D Digital, Inc's. (www.3d.com) mission is to become an international market leader in the rapidly growing and value-added field of stereoscopic 3D imagery. C3D furnishes high-end, 3D application services and content to the entertainment, industrial simulation, education and training, broadcasting, and PC game industries, among others. The company plans to become a leading provider of end-to-end, true stereo 3D solutions through systems integration, proprietary hardware, and professional software development.

This press release includes statements, which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this press release that are not strictly historical are "forward looking" statements, including statements regarding: C-3D's ongoing advertising and media efforts, including its abilities to improve those efforts; C-3D's effectiveness in targeting its products to individual consumers through retail distribution channels; the quality of C-3D's products and their acceptance by individual consumers; the prospects for C-3D's relationships with its vendors, including Vivendi Universal Net USA. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from the expected results. These risks include, but are not limited to: C-3D's limited operating history; the novelty of its products, which are largely untested in retail distribution channels; the rapidly evolving nature of the markets for stereoscopic 3D products and the evolving and innovative nature of those products; the limited experience of C-3D in dealing with Vivendi Universal Net USA; the difficulty that C-3D may experience in obtaining adequate financing to successfully implement its business plan; and other risks which are set forth in more detail in C-3D's filings with the Securities and Exchange Commission, including its recent filings on Forms 10-KSB and 10-QSB and Amendment No.3 to the Registration Statement on Form S-3, filed March 22, 2002.