Siliwood signs manufacturing agreement with major electronic 3-D supplier.

HOLLYWOOD, Calif.--(BUSINESS WIRE)--June 7, 1996--Siliwood Entertainment Corp. (NASDAQ/OTC:SLWC) Friday announced it has entered into a manufacturing agreement with Stereographics Corp. ("Stereographics"), whereby Stereographics will manufacture electronic three-dimensional ("3-D") viewing glasses with full television and computer monitor compatibility for Siliwood.

Siliwood will market and sell these glasses under the name "C3D."

Stereographics is the leading 3-D enabler to the imaging market and the world's leading supplier of electronic stereo display equipment. Its product family includes 3-D stereo eyewear for computer and video applications, which are marketed worldwide.

Initial manufacturing of the "C3D" home entertainment system for Siliwood will commence in the next 90 days, and will be for "Starter Kits." A starter kit will consist of two pairs of electronic 3-D glasses and a control box that will hook up to a standard television or video cassette recorder ("VCR").

The control box allows for four pairs of electronic glasses to be used at the same time. In addition to the starter kits, additional pairs of electronic glasses will be sold separately. Suggested retail price for the starter kits will be $99, with each additional pair of electronic glasses to be $39.99.

The "C3D" home entertainment system is a ground breaking product, in that now the consumer may experience 3-D entertainment at home, with a television, VCR, and electronic glasses or shutter glasses similar to the eyewear systems at IMAX 3D Theaters that screen 3-D movies.

The new C3D entertainment system provides significantly more depth and higher image quality than flat 2-D images and average 3-D images found in most old 3-D films. Other problems with the older versions of 3-D included poor quality, lack of depth, and inferior eyewear (the cardboard red/blue glasses).

It is evident that three dimensional media has become a major entertainment medium by recent attendance figures at 3-D theaters. Now this entertainment may be viewed at home, with Siliwood providing both content and C3D viewing systems.

CONTACT: Phil Kueber, 310/589-5545

Peter Langs, 310/289-5488