3 New alliances

Kazoo3D PLC 2 November 2000 KAZOO3D ANNOUNCES ALLIANCES WITH HP, SUPAPIC.COM AND E-FRAMES.COM KazooStudio software to be bundled with HP Pavilion home PCs in the US and to be made available for download on two leading digital photo websites Kazoo3D plc (LSE: KZO), the online 3D software and content specialist, today announces that it has secured three further alliances for KazooStudio, its consumer software product, that enables users to create 3D-enhanced digital photographs. These relationships, with Hewlett-Packard Company, supapic.com and e-frames.com, will significantly enhance awareness of KazooStudio in the fast growing digital imaging market and will make the software available to hundreds of thousands of targeted potential users. Today's relationships with HP, supapic.com and e-frames have been secured as part of Kazoo3D's strategy of achieving cost effective rapid market penetration for its 3D software platform amongst significant end user communities in selected target markets. The relationships are based on a revenue sharing formula linked to purchases made at the www.kazoo3d.com website. The KazooStudio software comes with a limited number of free, ready to use 3D models and also contains links to Kazoo3D's website, www.kazoo3d.com, where users can browse and purchase additional 3D models from Kazoo3D's rapidly growing online library. Kazoo3D can identify the referral partner for each transaction on its site and will pay a referral commission to the respective partner. In this way, Kazoo3D believes it will secure the support of its partners in the active promotion of its 3D software platform and online 3D content library to their customers. KazooStudio enables users to incorporate 3D models into digital photos, position them at any angle and transform them using painting and lighting options. From here, they can share their 3D enhanced KazooPictures with friends and family via email, order printed copies of the photographs, create customised greetings cards and gifts, or even upload them directly to photo sharing albums on the web. There are currently 66 commercial photo activity websites in the US, attracting some 12 million unique visitors per month. Research from Infotrends forecasts that the US photo merchandising market will grow from $18.5m in 1998 to $1.4 billion in 2003. Commenting on the relationships, Stuart Green, Chief Executive of Kazoo3D said: 'This is another important stage in the development of our business plan and brings us one step nearer to realising the revenue side of our business model. The launch of our website at the end of August opened up the opportunity to demonstrate how our KazooStudio software could add value to potential partners in the digital imaging market. 'All the research indicates that this is a huge potential market for us. Online photo sharing is already widespread in the US and is starting to grow in Europe. Today's announcements build on our existing relationship with Adobe and are a further step towards reaching this exciting market and our goal of putting KazooStudio on the desktops of as many potential users as possible. Discussions with other web merchants and OEMs are ongoing and we expect to be in a position to announce further partnership deals over the next few months.' Details of the alliances follow: HP: Kazoo3D has entered into an agreement with HP for a special CD-version of KazooStudio to be bundled with thousands of HP Pavilion home PCs that will be part of a special promotion in North America over the coming Thanksgiving holiday season. The CD will contain over 90 free Kazoo3D Models together with a link to the www.kazoo3d.com website where users will be able to purchase additional 3D models, including Rocky & Bullwinkle & Friends, as well as Halloween and other holiday themed model packs. eframes.com: Kazoo3D has entered into a partnership with eframes.com, a leading US website for printing, framing and sharing digital photographs. The agreement will result in KazooStudio being available as a free download on the eframes website together with links to the KazooStore on the www.kazoo3d.com website. eframes.com will promote KazooStudio to its users, providing them with the added capability of creating 3D-enhanced digital photos, in return for a share of revenues generated by eframes customers on the Kazoo3D website. eframes.com is also a leading supplier of technology to other websites wishing to offer a photo printing and production service on their site. Discussions are ongoing between Kazoo3D and eframes regarding other potential opportunities for further collaboration. supapic.com: Kazoo3D has entered into a partnership with superpic.com, the UK's first online photography company that offers a unique 'next business day' photo delivery service for online customers in the US and Europe. The agreement will result in KazooStudio being available as a free download on the superpic website together with links to the KazooStore on the www.kazoo3d.com website. superpic.com will promote KazooStudio to its users, providing them with the added capability of creating 3D-enhanced digital photos, in return for a share of revenues generated by superpic customers on the Kazoo3D website. For Further Information Contact: Kazoo3D plc Stuart Green, Chief Executive Officer John Warden, Chief Financial Officer 0114 290 0026 Hogarth Partnership James Longfield/Chris Matthews 020 7357 9477 About Kazoo3D Kazoo3D (LSE: KZO) is creating a consumer-friendly 3D platform that adds to and enhances all kinds of visual communications - business and personal - including Website based images, interactive e-mail, electronic notices as well as photos and hard copy documents. Established in 1998 in Sheffield, England, Kazoo3D obtained admission to the Alternative Investment Market (AIM) in the UK in March 2000 and has marketing and sales offices in Walnut Creek, Calif. Kazoo3D partners include Adobe Systems, Inc (NASDAQ: ADBE), ScreenFriends Corporation, Streetwise Software, Inc. and Universal Studios Consumer Products Group. Kazoo3D is available on the Internet at www.kazoo3d.com.
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