Chyron and BVR Technologies announce strategic partnership; companies to develop and distribute virtual reality studio systems for the worldwide broadcast and video market.

MELVILLE, N.Y. and TEL AVIV, Israel--(BUSINESS WIRE)--Dec. 14, 1995--Chyron Corporation (NYSE/CSE:CHY) and BVR Technologies Ltd. (NASDAQ:BVRTF) announced today that they have signed a letter of intent whereby Chyron will purchase a new class of Convertible Redeemable Preferred Shares to be issued by RT-SET (Real Time Synthesized Entertainment Technology) Ltd. RT-SET is currently owned by BVR through its wholly-owned subsidiary EVR (Entertainment Application of Virtual Reality) (1994) Ltd. A binding agreement is expected to be executed between the parties on or before February 15, 1996.

Under the terms of the agreement in principle, Chyron will issue common stock with a market value, as defined, of $6 million in exchange for a preferred position in RT-SET which when converted will result in Chyron owning 19% of RT-SET. The agreement in principle also involves BVR Technologies and EVR granting Chyron certain call option rights which when exercised by Chyron will result in Chyron owning a 51% or greater position in RT-SET common stock.

RT-SET develops, markets and sells real time virtual studio set software and proprietary communications hardware that operate on Silicon GraphicsTM systems. RT-SET's products were exhibited at the April 1995 National Association of Broadcasters Convention (NAB) in Las Vegas and at the September 1995 International Broadcast Convention (IBC) in Amsterdam. In November 1995, RT-SET initiated customer site demonstrations both in the United States and overseas.

Chyron will assist in marketing, sales and distribution of RT-SET's Virtual Reality Studio Systems alongside RT-SET's own specialized sales teams. Chyron will also provide infrastructure for installation, service and support functions on a worldwide basis. Chyron will purchase an RT-SET Otus software system in January 1996 in order to develop specific software application programs for the television broadcast and high-end post-production markets.

In commenting on this agreement, Isaac Hersly, Chyron's President and Chief Operating Officer stated that, "Chyron's television and post-production customers are beginning to examine the feasibility of installing Virtual Reality Studio Systems. RT-SET's products carry significant price performance advantages over alternative solutions and we believe Chyron's existing distribution channels to broadcasters, cable and post-production markets are well placed to optimize the global sales potential."

Michael Wellesley-Wesley, Chyron's Chairman and Chief Executive Officer, further stated that, "RT-SET's highly sophisticated Virtual Reality Studio System Software has its roots in the real time aerial combat simulation software developed by BVR Technologies for the Israeli Department of Defense and additional worldwide defense customers. RT-SET's Larus and Otus Software Systems are only the first examples of a new generation of sophisticated simulation software with application to our Broadcast, Cable, Satellite, Post-Production and Telco customers. Chyron looks forward to a long and productive relationship with RT-SET and its affiliated companies."

Aviv Tzidon, Chairman of RT-SET and also Co-Chairman of BVR stated, "This agreement constitutes a significant breakthrough for RT-SET, placing it in the forefront of the virtual studio market. It also signifies the success of BVR in creating commercial spinoffs for its technologies which concentrated initially on defense applications. We conducted a thorough survey seeking a strategic partner and Chyron came up as the optimal choice, being involved in broadcast-related hardware and software systems. Chyron has set the standard for high quality video graphic displays and is the market leader in North America, while aggressively increasing its international installed base. Since the virtual studio requires intensive and continuous support and service, Chyron's excellent reputation in these fields is greatly appreciated by BVR as an important and valuable asset."

Chyron Corporation designs, manufactures and markets "enabling tools," including electronic character and graphic systems, editing systems, and software-based video paint and animation systems for the broadcast television, cable, video production, industrial and multimedia markets worldwide.

CONTACT: Chyron Corp., Melville

Michael Wellesley-Wesley, Chairman & CEO, [phone]

Isaac Hersly, President & COO, [phone]

Judy Mauro, Dir. of Corporate Communications, [phone]

or

Chyron's Investor Relations Counsel:

The Equity Group

Devin Sullivan, [phone]

Robert Goldstein, [phone]

or

RT-SET/BVR:

For information in the U.S., please contact:

Paul Schmidman

Managing Director of U.S. operations,

[phone]

or

For information outside the U.S. please contact:

Aviv Tzidon, Chairman, RT-SET

Co-Chairman, BVR

972-3-571-5671

Isaac Schwarzenberg, Vice President of Marketing and Sales

Rebecca Rosenfeld, Director of Business Development

972-9-552236

or

RT-SET/BVR Press Info:

Skip Ferderber (818)-981-9291