General Instrument Corp. and Dynamic Digital Depth Inc. Sign Development Agreement to Integrate 3D Into Consumer Set-top Terminals.

SANTA MONICA, Calif.--(BUSINESS WIRE)--June 18, 1999--

Dynamic Digital Depth Inc. ('DDD') (ASE:DDE) has entered into a 12 month development agreement with General Instrument Corporation ('GI') (NYSE:GIC) intended to deliver 3D television to the home.

The agreement intends to combine GI's digital set-top terminals and headend encoder systems with DDD's DeepSee(TM) 2D compatible 3D transmission technologies. The agreement is effective as of June 17, 1999.

As a condition of the agreement, GI has purchased 1.5 million new Common Shares and 1,000,000 Warrants in DDD for net proceeds of CDN $2,790,000. Each Warrant has a three (3) year term and is exercisable into one (1) additional Common Share at an exercise price of between CDN $3.50 and CDN $5.50 during the three year period. The investment by GI was accompanied by an unrelated third party co-investment which provided net proceeds of CDN $930,000 by the placement of 500,000 Common Shares and 500,000 Warrants issued on identical terms as those granted to GI.

"By combining GI's advanced digital technology with DDD's DeepSee(TM) technologies, cable consumers will be able to experience 3D television," said Geoffrey Roman, executive vice president of GI. "It would be the best of both worlds because the viewer can choose to watch programs in either 2D or 3D."

Lack of 3D content has been a major barrier preventing cable operators from providing 3D programming. DeepSee(TM) converts new and existing 2D programs to high-quality 3D for decoding in GI's advanced set-top terminals. "The implications of our partnership with GI are tremendous," said Neil Speakman, chairman and CFO of DDD. "Integrating our 3D technology into GI's digital set-top terminals will change the way people watch television."

GI is a leading worldwide provider of integrated and interactive broadband access solutions, teaming with its business partners to lead the convergence of the Internet, telecommunications and video entertainment industries.

DDD is a world leader in the provision of 3D content and delivery technologies to the entertainment and multi-media markets, focusing on the broadcast and Internet industries. Founded in Perth, Australia, DDD also has offices in the United States and Canada. The company is publicly traded on The Alberta Stock Exchange under the symbol ASE:DDE. For more information, please visit the company's Web site at www.ddd3d.com.

Note to Editors: The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.