K2 Design Partners With Metastream to Increase Consumer Satisfaction With Web Shopping Experience.

Business Editors, High-Tech Writers

NEW YORK--(BUSINESS WIRE)--August 9, 2000

3D Technology Allows Internet Retailers to Go "Beyond the Catalog"

Shoppers See the Merchandise Better -- the Closer They Get

K2 Design, Inc. (Nasdaq:KTWO, KTWOW), the Internet business strategy firm, announced a new strategic alliance today with Metastream Corporation, a subsidiary of MetaCreations Corporation (Nasdaq:MCRE) and a leader in super-rich web media and services.

This relationship will integrate K2 Design's proprietary methodology for creating satisfying, user-centric experiences with Metastream's enhanced 3D technology that takes online product presentation and user experience to a new and richer level.

"K2 Design has been a pioneer in the art of improving brand perceptions by creating more satisfying online user experiences. What we like about Metastream's enhanced 3D technology is that it allows shoppers to virtually handle the merchandise," explained Doug Cleek, Chief Creative Officer of K2. " They actually get a sharper, clearer picture of the product as they bring it closer with the mouse -- instead of a fuzzier, more pixilated one. They can turn the product over or walk around it. They can take it apart and put it back together. They can even try out new colors, textures and fabric patterns. This is a major advance because the user isn't just browsing the catalog anymore, they're really interacting with the product and getting to know it before they hit the shopping cart button."

Customer Satisfaction is linked to Metastream Technology

K2 and Metastream are dedicated to helping clients reverse the shortcomings of the online experience. First, Metastream reduces long download times by producing files that are among the smallest, quickest-loading 3D files with the highest visual fidelity available on the market today.

Secondly, Metastream's high level image resolution gives consumers realistic and positive expectations for product value and quality. In a recent quantitative online study conducted by Greenfield Online Research, 1500 users viewed merchandise for sale on two Web sites. The sites were identical, except that one displayed the product in Metastream 3D format and the other in standard, 2-dimensional JPEG images. Respondents indicated that they were significantly more likely to purchase products that were presented in the interactive, 3D Metastream format. And more than half the users said they would be less likely to return those products because Metastream gave them more accurate expectations of the products than standard pictures. And finally, K2 and Metastream apply advanced CRM strategies and technology throughout the entire customer relationship.

"We're excited to work with K2 because Metastream's enhanced 3D technology complements K2's strategic thinking and enables K2 to offer their customers a more compelling e-commerce solution," explained Jim Brubaker, Vice President of marketing. "Starting with the shopper's enriched online interactions with the products, MTS3 allows three-dimensional images to be integrated with call-outs, assembly instructions and even user manuals and accessory installation -- virtually any kind of Web content that the customer needs, either before or after the purchase. The customer for a high-ticket item like furniture not only sees the front of the computer desk, but she can walk around it and see how it looks from the side and back. She can pull out the keyboard tray and look inside storage areas. She can change a dark wood finish to light and try out different seating fabrics and trim colors. In some cases, the virtual `try out' can be so much more reassuring than the in-store experience, that there are no surprises when she opens the shipping box. Customer expectations, retention and loyalty are part of the whole equation."

About K2

K2, an Internet business strategy company, provides consulting and development services including analysis, planning, systems design, creative, and implementation. Ranked by Deloitte & Touche among the fastest growing technology companies in the U.S. in 1999 and in New York in 2000, K2 constructs user-centric digital channels that map to enterprise-wide processes and goals. K2's process-driven approach utilizes the strategic, conceptual, technical and marketing experience it has developed since 1993 to help multi-divisional and global companies maximize their Internet opportunities. Clients include: ABB, Philips Lighting, Puerto Rico Convention Bureau, Silversea Cruises and Standard & Poor's. In July 2000, K2 formed a joint venture with partner Unwired Ventures I to create the industry's first pure-play wireless professional services firm called SilverCube. For more information, please visit our web site: www.k2design.com.

About Metastream Corporation

Metastream Corporation is the leading provider of super-rich web technology and services that take online product presentation and user experience to a new and richer level. Combining its next generation "Experience Technology" and content creation services, Metastream is an unprecedented web force in branding, advertising, and commerce solutions. The company's primary initiatives include licensing Metastream technologies for e-commerce initiatives, providing a full range of professional services for implementing enhanced 3D web marketing solutions, both directly and through strategic alliances with leading interactive agencies and Web content providers. Metastream is 70 percent owned by MetaCreations Corporation (Nasdaq: MCRE) and 18 percent by Computer Associates International, Inc. (NYSE: CA) and is headquartered in New York City, New York. Additional information about Metastream is available at http://www.metastream.com.