C3D Announces Restructuring; Refocuses Business Units.

Business Editors

MARINA DEL REY, Calif.--(BUSINESS WIRE)--Oct. 2, 2000

Chequemate International (AMEX:DDD), dba C3D Digital Inc., has announced a major restructuring which refocuses its business units to assure operational efficiencies.

Each of its three divisions; C3D Television, 3D.COM and Hotel Movie Network, has taken measures to reduce costs which are expected to result in significant annual savings of approximately $9.4 million. In addition, consolidated revenues are increasing and combined with the cost reductions, they are expected to lead to near term operational profitability.

The C3D Television division is changing its focus from content production for the 24/7 television network, to the execution of Pay Per View events and other licensing and distribution agreements of 3D video content. This comes after the successful production of over 60 hours of quality stereoscopic 3D video content, which will be used on the 3D Television Network.

Also, over 1,000 hours of 2D video content has been licensed, which can be used either in standard distribution, or for conversion into 3D for use on the 3D Television Network.

The 3D.COM Internet division is increasing its focus on revenue generation and will now operate at break even or with profitability. 3D.COM in recent months as been developing important Internet infrastructure to support increased Internet revenues. They have also been working to upgrade a key Strata software product, which is developed, maintained and supported by this division.

The Hotel Movie Network Division has provided consistent revenue since joining C3D Digital. It is continuing to actively seek additional avenues of revenue enhancement and expansion opportunities.

"As a result of these actions, we believe that C3D is better positioned today to accept the challenges going forward to exploit the 3D marketplace. The window of opportunity is opening for us to shift our focus from platform creation to implementation and generation of increasing revenues and earnings," stated C3D Chairman and CEO, J. Michael Heil.

C-3D Digital is a leading innovator in media content creation and technology for 3D imagery and virtual reality entertainment for television and the Internet.

The company operates the C3D Television Network, the world's first and only broadcast network to offer stereoscopic 3D programming; 3D.COM, its Internet subsidiary and home to the virtual reality/3D portal/e-commerce community center on the Web, and producer of Strata Software, a leading brand of 3D graphic design software; and the Hotel Movie Network (C3D Direct), a private broadcast network focused on the hospitality industry. For more information, visit www.3d.com.

This news release includes forward-looking statements that are made pursuant to the "safe harbor" provision 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. All filings can be found under Chequemate International DBA C-3D Digital Inc. in the Edgar filings with the SEC.