Steag Hamatech and Constellation 3D Sign LOI to Develop Equipment for Producing FMD Media.

Companies to Expand Standards for High-Capacity Optical Disc Storage

NEW YORK--(BUSINESS WIRE)--Nov. 16, 2000

Constellation 3D, Inc. (NASD: CDDD) and optical disc equipment supplier Steag Hamatech today announced the completion of a formal letter of intent. Under the agreement, the two companies will collaborate on the design and development of machinery for producing Fluorescent Multilayer Disc (FMD) media.

"This agreement is part of 3D's strategy to align strategic partners to cover the entire line of FMD media production including chemicals, films, disc manufacturing machinery and drives," said Constellation 3D CTO Vladimir Schwartz. "Steag is the recognized world leader in the production of dye coating equipment for writable CD and DVD formats - and their expertise in this area is invaluable to our continuing efforts and success. Currently we are compiling the pieces for a complete media production operation. Industry leaders such as Zeon Chemicals and Steag will play key roles in the success of our program."

The introduction of FMD smashes the barriers of existing data storage formats. Depending on the application and the market requirements, the first generation of 120mm (CD Sized) FMD ROM discs will hold 50 - 140 Gigabytes of pre-recorded data on 12 - 30 data layers with a total thickness of under 2mm. In comparison, a standard DVD disc holds just 4.7 Gigabytes. With C3D's proprietary parallel reading and writing technology, data transfer speeds can exceed 1 gigabit per second, again depending on the application and market need.

"The future of data storage requires the industry move beyond 2-dimension memory to achieve the high capacity the market will demand," said Dr. Stephan Mohren, President and CEO of Steag Hamatech. "Constellation 3D has demonstrated the feasibility of fluorescent multilayer technology, and we're excited to be part of the effort to develop manufacturing systems that will make inexpensive FMD media a mass market reality."

STEAG HamaTech, Inc. together with STEAG HamaTech AG form a world-class research and developing department. The company's combined strength ensures that it delivers robust and reliable technology - exemplified by its agreement with C3D.

Constellation 3D, Inc. develops advanced data storage products including the ultra high capacity Fluorescent Multilayer Disc and ClearCard. The company has offices in New York and Massachusetts, and laboratories in California, Israel and Russia. Constellation 3D holds or has made applications for over 80 worldwide patents in the field of optical data storage. More information is available at www.c-3d.net.

STEAG HamaTech, Inc, USA, Is a wholly owned subsidiary of STEAG HamaTech AG, Germany, and is the only company in the United States that develops and produces replication systems for the optical disc industry. For 10 years the company has delivered state of the art equipment for Manufacturing CD-Audio/ROM and DVD worldwide. The company's primary goal is to extend its technical advantage and continue to develop advanced production systems that meet its customer's requirements.

Statements contained in the news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from expected results.

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