C-3D Digital Furthers Advertising Campaign Through Extensive Media Placement; Company Retains Mercury Media to Target Video Game Market.

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UNIVERSAL CITY, Calif.--(BUSINESS WIRE)--Feb. 27, 2002

C-3D Digital, Inc. ("C-3D") (AMEX:DDD) announced today that it has retained iMercury(TM), the interactive arm of the nation's largest independent media buying agency Mercury Media (www.mercurymedia.com), to market C-3D's Another EYE 2000(TM) to the $20 billion worldwide video game industry.

Another EYE 2000 converts video games developed utilizing Direct X or Open GL authoring languages, including most games developed in the last two years -- such as Electronic Arts' (Nasdaq:ERTS) "NHL 2002," Activision's "Tony Hawk Proskater I & II," and Lucas Arts' "Rogue Squadron" -- into perfect 3D. To enable the 3D images on a standard PC monitor, the futuristically designed Another EYE 2000 includes lightweight, space-age LCD shutterglasses and plug-in software, which allows for real-time 3D conversion of video games, still pictures and streaming media. The product, which sells for less than $100, also includes a VGA adapter, wire controller and keyboard adapter. Additional product information is available at the Company's Web site at www.3d.com.

"We have a very specific market for Another EYE 2000 -- gamers who buy and play some of the top-selling titles available and who want to maximize their experience," said Chandos Mahon, President and CEO of C-3D Digital, Inc. "It is imperative that we reach this core demographic in a specific, targeted manner, and in a way that delivers our message and optimizes our marketing dollars.

"Whether it's a huge company like Sony or a niche player like C-3D, the Internet levels the playing field and iMercury(TM) knows how to leverage this channel effectively. In addition to extensive media placement, we plan to have direct distribution in the future with the top video game etailers such as Amazon.com, GameStop (NYSE:GME) and GameSpy.com."

"Gamers tend to be a sophisticated and experienced demographic when it comes to design, technology and the entertainment value of game-related products," said Jason Ramsey, Director, Internet and iTV Services for iMercury(TM). "C-3D's Another EYE 2000 is a value-added and focused product for this demographic.

"One of the strengths of our online marketing capability is that we continually monitor results and adjust to expand and optimize the campaign based on consumer response. Although we have advanced technology to assist us in this process, when it comes down to it, our campaign success is based on the expertise of our planners and analysts. You can't beat that combination."

About C-3D Digital, Inc.

Through its core stereo 3D technology utilizing Virtual & Augmented Reality (V&AR), C-3D Digital, Inc. (www.3d.com) is positioning itself as an international market leader in the burgeoning and value-added field of stereoscopic 3D imagery. C-3D 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.

About iMercury(TM) / Mercury Media

iMercury(TM) is the interactive arm of Mercury Media (www.mercurymedia.com), the nation's largest independent media buying agency, with offices in Los Angeles, New York and San Francisco. Over the last 13 years, Mercury Media has facilitated campaigns for such companies as NetFlix, Sony, TiVo and Activision, and last year placed $120 million in media buys. Mercury Media extends this collateral buying power to iMercury(TM) to maximize marketing dollars online and leverages the staff's collective experience gained over more than seven years in the Internet aspect of the business to enhance client ROI. iMercury also employs POLARIS(TM), the company's customizable, proprietary campaign management tool that gathers data unique to client specifications and tracks the value of every advertising dollar.

This press release includes statements that are 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 positioning itself as a leader in 2D-to-3D stereoscopic conversion and its ability to develop and launch new products to meet this emerging market; C-3D's ability to leverage the Internet and reach its targeted markets in competition with larger and more well-financed competitors; the quality of C-3D's products and their acceptance by individual consumers; the prospects for C-3D's relationships with its vendors, including Mercury Media. 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 and Internet 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 Mercury Media; 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/A and 10-QSB/A, and Amendment No. 2 to the Registration Statement on Form S-3, filed February 8, 2002.

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