January 30, 2003 - Company Says 2002 Most Successful Year Ever; Added Nine Customers in the US and Overseas

BURLINGTON, Mass. - January 30, 2003 - Actuality Systems, Inc., the leader in spatial 3D visualization technology, today reported that 2002 was its most successful year ever and that as of the end of December, the company added nine customers for its unique Perspecta TM 3D System in the U.S. and overseas.

"Despite one of the most difficult environments for new technology and new capital investment, 2002 was a very good year for Actuality Systems," said Cameron Lewis, who joined the company in March as president and chief executive. "Over the past 12 months, we've been able to move Perspecta from development stage to full commercialization of both hardware and software, we completed a successful round of funding including the addition of several major investors, and we?ve received new patents on our technology."

The Perspecta 3D System consists of a unique 360-degree spatial display and associated software. The display illuminates a record 100 million volume pixels within a transparent Lexan? dome, enabling users to render high-resolution spatial images that can be viewed from any angle.

Customers in Government, University, Medical Imaging

Typical medical applications for the Perspecta system include: nuclear medical imaging, such as using PET scans to locate tumors; medical intervention, such as stent insertion into blood vessels; mammography and biopsy, such as having 3D feedback on the precise location of a biopsy needle. In addition, other non-medical applications for the equipment include drug discovery; air-traffic control; game development; and checkpoint security, giving inspectors a faster and more reliable way to visualize the contents of freight or passenger luggage.

Among the customers for the Perspecta 3D System are government agencies such as NASA, the U.S. Army Research Laboratory, and Los Alamos National Laboratory; university research organizations at the University of Toronto and Kyoto University in Japan; and commercial firms involved in biotechnology and molecular modeling, such as Structural GenomiX.

As part of the firm's efforts to commercialize the new technology, Actuality has also established working partnerships with a number of technology leaders in the fields of nuclear medicine, medical imaging, and defense systems. The company?s current technology and supplier partners include Texas Instruments (NYSE: TXN), Silicon Graphics (NYSE: SGI), Da-Lite Screen Company, Inc. and many others.

Major New Patents and Technical Improvements

During the year, Actuality's intellectual property fortress increased to six issued and allowed patents, both domestic and abroad. These include fundamental graphics algorithms and novel optics that enable high-fidelity spatial 3D projection.

"We've spent a good deal of time over the past year refining the technical capabilities of Perspecta to prepare it for full-scale production," said Lewis. "The changes included improvements to system optics and integration of the state-of-the-art DLP? technology from Texas Instruments."

The current generation of Perspecta display incorporates TI?s revolutionary DLP technology along with an optical semiconductor that has as many as 1.3 million microscopic mirrors to manipulate light digitally and generate a picture with unmatched clarity, brilliance, and color.

Successful Round of Financing

Also during the year, Actuality was successful in raising more than $1.5 million in Series B financing from Navigator Technology Ventures of Cambridge and a group of private investors. Navigator specializes in funding support for early-stage companies with innovative technologies in electronics, biotech, IT, and wireless. The firm takes an active role in helping its portfolio companies bring their technology to market.

About Actuality Systems

Actuality Systems, Inc. develops, produces, sells, and licenses the Perspecta TM 3D System, a combination of hardware and software that permits 360-degree visualization, simulation, and collaboration. The system enables users to create high-resolution spatial 3D images that can be viewed from any angle around the 360-degree transparent dome -- without the use of special goggles. Founded in 1997 in Cambridge, the firm has received venture funding and now operates from offices in Burlington, Mass., north of Boston. The Perspecta 3D System is designed for use in a range of applications including medical imaging, aerospace and defense, and oil and gas exploration.

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Media Contact Info:
Ellen Walravens, aMate Comm., (781) 281-1546; Ellen@amatecommunications.com

NOTE: Digital Light Processing and DLP are trademarks of Texas Instruments