------------------------ Article ------------------------- Tuesday, December 14, 1999 08:12 AM CARPINTERIA, Calif.--(BUSINESS WIRE)--Dec. 14, 1999-- MetaCreations Corp. (Nasdaq:MCRE) today announced that it is moving to one strategic objective, which is to focus solely on e-commerce visualization solutions for the World Wide Web. MetaCreations' e-commerce visualization business is centered on the Company's industry-leading, patented MetaStream technology, specifically for the streaming and display of interactive 3D virtual product presentation over the Web. The MetaStream 3D streaming technologies are initially being focused on virtual product merchandising for hard goods, such as electronics, apparel, housewares, sporting goods, among others. Forrester Research has stated that these markets are some of the largest and fastest-growing segments of e-commerce, growing from $6 billion in 1999 to $45 billion in 2003. In addition, industry analysts such as Forrester, CNET and Jupiter Communications have recognized MetaStream as the leading visualization technology for interactive product merchandising on the Web. The MetaCreations Board of Directors is enthused about the progress being made by MetaStream.com, MetaCreations' initiative for the delivery of e-commerce visualization solutions. The Company believes that its growth prospects in e-commerce visualization are very substantial. However, the Company no longer sees the professional graphics business as offering growth as compared to its e-commerce visualization opportunities.

As a result, and after careful consideration by the Board of Directors, the Company has made the decision to significantly restructure its business to focus on its e-commerce visualization solutions and to divest its graphics software assets that do not complement this strategy. This will result in the reduction of approximately 100 of MetaCreations' personnel by year end, all of whom are associated with the professional graphics business of the Company. The Company expects to report a loss of approximately $38 million to $42 million this quarter, substantially as a result of this decision. Additionally, the Company expects that revenues this quarter will be significantly less than analysts' forecasts. The Company also expects that cash balances will remain strong at Dec. 31, 1999, approximating $36 million to $38 million, reflecting that most of the charges are non-cash. At the same time, the Company is aggressively ramping up its personnel and expenditures in MetaStream.com to accelerate the deployment of its e-commerce visualization solutions. MetaStream 3.0 will provide many new, advanced forms of interactivity, improved rendering and compression levels for both 2D and 3D imagery, content security, data collection, and the ability to seamlessly integrate other media types, such as audio, vector graphics, video and object movies. This means that e-retailers can give shoppers the confidence that what they see is what they get. This is a major step forward in moving shoppers past items like books and CDs, to must-see products like personal electronics, apparel, furniture, appliances and automobiles.

The next major version of MetaStream, MetaStream 3.0, is also the enabling technology for a new licensing model for MetaStream, where e-retailers and e-merchandisers will pay license fees to broadcast MetaStream models from their sites. MetaStream.com is currently working with licensees for deployment of MetaStream visualization solutions. The Company expects that MetaStream 3.0 will go into beta version this month, with full release expected during the first quarter of 2000. MetaStream has most recently been distinguished by receiving PC Magazine's prestigious 1999 "Technical Excellence" award and Popular Science magazine's "Best of What's New" 1999 award. Co-developed by MetaCreations and the Intel Corporation, MetaStream is currently distributed by Intel through its Web Outfitters service for Pentium III users, by Excite@Home within @Home 1.7, the new version of the @Home client software, and Microsoft Corporation distributes major components of the MetaStream viewer within Windows 98 SE. MetaStream is also available via download from www.metastream.com/plugins.html. In addition, Minolta and Kodak are in the process of manufacturing and marketing MetaStream.com's patented MetaFlash 3D cameras for easier, more efficient capture and creation of MetaStream content. The Company has engaged the services of Alliant Partners to help with the divestment of the Company's non-strategic assets. Alliant Partners has headquarters in Silicon Valley and provides financial advisory services for technology companies. The Company expects to generate additional cash through the sale of these non-strategic software assets.

The Company will continue to leverage its graphics software technology to develop and deploy strategic authoring capabilities for MetaStream e-commerce visualization. This will include some of the Company's current award-winning 3D products and related technologies. The Company intends to continue providing technical support of all of its products. About MetaCreations MetaCreations is focused on e-commerce visualization solutions for the World Wide Web. MetaCreations' strategy is centered on the Company's MetaStream technology and software tools designed to make the interactive use of photo-realistic 3D on the Web practical and pervasive. MetaStream.com is a joint initiative between MetaCreations and Computer Associates. The Company has headquarters in Santa Barbara County, Calif., and can be reached on the World Wide Web at http://www.metacreations.com. Additional information about MetaStream.com is available at http://www.metastream.com. These statements regarding estimated results and charges for the quarter are preliminary and based on partial information and management assumptions. MetaCreations expects to announce its actual results for the fiscal year and the quarter at the close of market on or about Feb. 2, 2000.

This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially as a result of a number of risks and uncertainties affecting the Company's business. Such risks include, but are not limited to, the following: no assurance that e-commerce will grow, grow at rates in excess of the professional graphics business or grow at rates suggested by industry analysts; no assurance that MetaCreations' ramping up in its spending on MetaStream.com will accelerate its deployment of e-commerce solutions; no assurance that MetaStream 3.0 will ship on time or include the functionality as described in this news release; no assurance that MetaCreations' new licensing model for MetaStream will be successful or that e-tailers or e-merchants will pay license fees to broadcast MetaStream models from their Web sites; no assurance that the Company will be able to leverage its graphics software technology to deploy authoring capabilities for MetaStream; no assurances that the Company will be able to sell its non-strategic assets or generate cash from the sale of those assets. For a more detailed discussion of factors that affect MetaCreations' operating results, interested parties should review MetaCreations' SEC reports, including MetaCreations' Annual Report on Form 10-K for the year ended Dec. 31, 1998, and Quarterly Reports on Form 10-Q.

Note to Editors: MetaCreations, MetaStream and MetaFlash are either registered trademarks or trademarks of MetaCreations Corp. Other product and company names herein may be trademarks of their respective owners. CONTACT: MetaCreation Corp., Carpinteria Terry Kinninger, 805/566-6200, Media terryk@metacreations.com Betty Franklin, 805/566-6289, Investors bettyf@metacreations.com 1999, Business Wire ----------------------------------------------------------- This article is produced by Quicken.com, the objective source for making the most of your money. Visit http://www.quicken.com the next time you need financial news, stock quotes, portfolio services, or information about taxes, mortgages, and insurance. ------------------------------------------------------------------------

Ok... So what's this mean? Will Poser, Bryce, Carrara, and Canoma still be supported? Ray Dream? Or is it all getting dropped? Sorry about the long post up there... this info doesn't appear to be on their website yet.

Well I hope they either sell the Poser, RDS, Bryce, Carrara, Canoma and others to someone who will keep them alive and let them fly with it. Maybe the employees that get let go will form a company that will take over the pro graphics programs. These programs are too good to lose. Nick Noel

Well, all of this sounds awfully familiar to me. Since Metacreations seems to be unable or unwilling to stat what will happen to Poser, Bryce or Painter, this could only mean two different things: 1. The Products will be dropped or sold (Which seems as the best alternative for us all.) 2. They will do the same thing with Poser, Bryce and the rest, that happened to 3D-Studio: Give them a new "more professional" look and a new pricetag (something around 1000 $ I guess). The Carrara-Development and Canomas Pricetag seems to indicate this Version of what will happen. I am one of those "marketing-bozos" that work in the e-commerce business and I have been using Metacreations products for quite a long time by now - well I think I will reconsider and use Lightwave from now on. Sure, Lightwave has a high pricetag - but it also has the abilities to match that pricetag. I like Poser and thought about upgrading to Carrara, but I won't waste my money on a product with a very unsave future. To bad there are not as many alternatives to Poser as there are to Carrara. I think a lot of people in the marketing business think likewise: Never invest in a product with an unsave future. So what do I want to say with all this? Simply one thing: TELL US WHAT WILL HAPPEN TO THE PROGRAMMS WE ALL USE! Stop telling us the usual corporate propaganda speech. Simply tell us what programms will be dropped and what programms will remain and the changes that will be done with these Programms Jg Weber