Microsoft Video Exec Joins ''Visually Perfect'' Compression Firm; Tom McMahon Now Chief Architect for L.A.-based DemoGraFX Inc.

Business Editors & High-Tech Writers

SANTA MONICA, Calif.--(BUSINESS WIRE)--May 24, 2001

Bob Rast, president & CEO, announced today that Thomas L. McMahon has been appointed chief architectural officer (CAO) of DemoGraFX Inc., a provider of "Visually Perfect" digital video compression.

McMahon's role as chief architect will be to bridge technology and markets, i.e., interpreting market requirements for technologists and DemoGraFX technology for its customers. McMahon joins DemoGraFX from Microsoft, where he played a similar role.

"Tom McMahon brings a wealth of experience in video and computers," said Rast, himself a pioneer in high-definition television and digital cinema. "We recently announced $10 million in funding from Baker Capital Corp. As we build DemoGraFX, moving to commercialize our very promising technology, Tom is a perfect fit. Interestingly, Tom has a history with Gary Demos, our founder and current CTO. Tom and Gary have collaborated over many years on a number of projects involving 2D and 3D computer graphics and imaging."

DemoGraFX is a provider of "Visually Perfect" video compression yielding superior picture quality at competitive bit rates for the movie, television, cable, computer and Internet markets. DemoGraFX has achieved a true breakthrough in cinematic quality, and the system also scales very well to applications such as streaming over cable and DSL modems. The technology was developed by a team led by Demos.

McMahon comes to DemoGraFX from Microsoft Corp., where he was cirector of Advanced Systems Architecture. He coordinated digital television technology strategy across Microsoft's divisions. On Microsoft's behalf he has been active in the television industry. McMahon has been Microsoft's representative to the Society of Motion Picture & Television Engineers (SMPTE), the Advanced Television Systems Committee (ATSC), Digital Video Broadcasting (DVB) and the Society of Imaging Technology & Sound. He also is a SMPTE delegate to the Motion Picture Expert's Group (MPEG) and a member of the Montreux Council.

"Tom McMahon is a rare executive, equally at home in both the computer and digital television worlds," said Demos. "I am delighted that we are joining forces once again." McMahon first worked with Demos in the 1970's, where they collaborated on a number of pioneering developments, including the world's first 1000-line high resolution digital color frame buffer, the Digital Film Printer, 3D computer animation and digital audio systems.

In the early 1980's, McMahon co-founded Symbolics' Graphics Division, rising to the position of VP and General Manager. McMahon was the driving force behind Symbolics' pioneering successes in digital television workstations, including HDTV. While at Symbolics, McMahon again collaborated with Demos, then at Whitney-Demos Productions, on a hardware/software systems architecture targeted at animation and imaging.

In the 1990's, McMahon was a consultant for clients including Sony Pictures, Adobe Systems and Mercury Computer Systems. He joined Microsoft in early 1997.

About DemoGraFX

DemoGraFX Inc. is a provider of "Visually Perfect" compression algorithms yielding superior picture quality at competitive bit rates for the movie, television, cable, computer and Internet markets. DemoGraFX has received research and development funding from the Department of Defense, the National Institute of Standards and Technology and the state of California. DemoGraFX was founded by Caltech-educated Gary Demos, a pioneer in the convergence of film and digital technologies for visual effects in motion pictures and television commercials. Demos has been honored as a co-recipient of three Academy of Motion Picture Arts and Sciences' Scientific and Technical awards for his work. He is also an Associate Member of the American Society of Cinematographers (ASC).

(Editor's note: A headshot of Tom McMahon is available. Please email [e-mail], and specify resolution and format if other than JPEG.)