C-3D Digital Posts Dramatic Revenue Growth and Strong Gross Profit Margins.

LOS ANGELES--(BUSINESS WIRE)--Nov. 17, 1999--

Chequemate International, Inc. (AMEX:DDD) d.b.a C-3D Digital, Inc., the world's first 3D television network and 3D Internet media company, today announced favorable financial results for the three and six months ended September 30, 1999.

Revenues rose nearly 11-fold in the second quarter fiscal 2000 to $842,177 from $77,628 in the same period last year. A major portion of this revenue increase was due to the performance of the 3D.COM division of the Company. C-3D Digital reported a gross profit turnaround from $(483) in the second quarter fiscal 1999 to $593,072 for the same three months this year. Gross profit margin was 70.4% for the three-month period ended September 30, 1999, during which time cost of sales declined 71.0 percentage points year over year relative to revenues.

Total expenses decreased as a percentage of revenues in the second quarter fiscal 2000 from the same period last year, with significant year over year reductions in both selling expenses and general and administrative costs relative to total revenues. The year over year increase in actual SG&A expenditures is due largely to expenses related to integrating former Strata employees into the Company's operations and establishing a new team to maintain a quality programming plan for the C-3D Television Network.

Net income was $(1,836,465), or $(0.08) per share, in the second quarter fiscal 2000 as compared to $(806,789), or $(0.05) per share, for the same quarter last year. The accumulation of net loss over the development period has provided the Company more than a $20 million tax carry forward loss until 2014, thus enabling C-3D Digital to use its funds to finance corporate expansion.

Revenues for the first half of fiscal 2000 grew nearly 10-fold to $1,609,186 with gross profit up to $1,027,132 as compared to $167,376 in revenues and $61,131 in gross profit for the same period last year. By decreasing cost of sales 27.3 percentage points relative to total revenues, the Company substantially increased its gross profit margin to 63.8% in the first six months of fiscal 2000 from a 36.5% gross profit margin in the six-month period ended September 30, 1998.

While actual selling expenses and general and administrative expenditures increased from the first half of fiscal 1999 to the same period this year, both these costs decreased considerably year over year as a percentage of total revenues. Net income was $(3,811,591), or $(0.17) per share, in the six months ended September 30, 1999 versus $(1,320,770), or $(0.08) per share, for the same period last year.

As of September 30, 1999, the Company had $1,885,990 in working capital, a 2 to 1 current ratio, total assets of $8,918,426 and $3,312,570 in stockholders' equity.

"I am extremely pleased to report our dramatic top line growth during the second quarter and first half of fiscal 2000," said J. Michael Heil, chairman and chief executive officer of C-3D Digital. "We are also very excited to report the significant improvements in gross profit margin over these periods as well as our ability to substantially reduce cost of sales and total expenses as a percentage of revenues.

"We anticipate strong gross profit margins during the second half of fiscal 2000," Heil added. "In the remainder of the current fiscal year, we also expect to increase expenses in order to support our corporate expansion. Yet, with revenues forecast to more than double over this period, our cost of sales should continue to decrease as a percentage of revenues in the remainder of fiscal 2000."

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                        Condensed Balance Sheet

                                      September 30,  March 31,
                                          1999         1999
                                        Unaudited     Audited
ASSETS
Cash and receivables                   $  701,325   $1,930,121
Total current assets                   $4,241,846   $5,244,233
Total assets                           $8,918,426   $9,683,716

LIABILITIES & STOCKHOLDERS' EQUITY
Total current liabilities              $2,355,856   $1,436,526
Total liabilities                      $5,605,856   $4,626,526
Total stockholders' equity (deficit)   $3,312,570   $5,057,190



             Condensed Statement of Operations (Unaudited)

                 For the three For the three  For the six  For the six
                  months ended  months ended months ended months ended
                     Sep. 30,      Sep. 30,     Sep. 30,     Sep. 30,
                       1999          1998         1999         1998

Revenues           $   842,177  $    77,628  $ 1,609,186  $   167,376
Cost of sales      $   249,105  $    78,111  $   582,054  $   106,245
Gross profit       $   593,072  $      (483) $ 1,027,132  $    61,131
Total expenses     $ 2,415,637  $   636,560  $ 4,741,818  $ 1,207,351
Net income (loss)  $(1,836,465) $  (806,789) $(3,811,591) $(1,320,770)
EPS (loss) - basic $     (0.08) $     (0.05) $     (0.17) $     (0.08)
Average no. of
 shares out'ing     22,876,361   16,050,274   22,766,504   16,050,274

C-3D Digital is a leading 3D media firm that gives broadcasting and entertainment companies the ability to deliver 3D entertainment to any standard television 24 hours a day. As a 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 network subscribers the ability to convert 2D films or programming into real-time 3D. Additionally, the Company operates an Internet subsidiary company, 3D.COM. C-3D Digital maintains offices in the Los Angeles, California; St. George, Utah; and Phoenix, Arizona areas.

This news release may contain forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act 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 representation to be true and accurate based on the 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.