UPPSALA, SWEDEN, September 9, 1999 - Cycore, the Swedish company developing 3D technology and special effects for Internet, film and video, strengthens its financial backing today through a directed new issue of 40 million SEK (approximately $5 million) from Brummer & Partners, through Zodiak Venture Capital and Den Danske Bank through Danica.

"Cycore's products make it possible to create realistic and interactive presentations of objects on the Web," said Stefan Löhr, Investment Manager at Zodiak Venture Capital. "We are convinced that 3D on the Web will become an integral part of future electronics trade among other things. Cycore's technological platform is already world-leading, and we are now hoping to contribute to the company's ongoing commercial development".

The investment will primarily be used to finance a more powerful bid for foreign markets, product development, and marketing. The most interesting foreign market is the United States, where Cycore will continue to build a sales- and marketing organization of approximately 20 staff members over next 12 months. The company also plans to work with global distributors.

"With the launch this year of the Cult 3D and Cult Effects in March and April respectively things have been moving fast for Cycore, and we have a good technological advantage," said Bengt Starke, Managing Director of Cycore. "Thanks to this share issue we are able to build an organization that can make use of this advantage and stay in the lead when it comes to new Internet technology. Among other things, we are currently developing a three-dimensional web-reader that will receive a major launch and this, together with the bid for the foreign market and other marketing, demands the kind of resources that are now at our disposal."

Notable American clients currently include Mercedes, which will launch a 3D model of an upcoming car using Cult 3D, Boeing and CNN. Notable Swedish clients include Dressmart and Nokia.

About Cycore
Cycore develops 3D technology and special effects for Internet, film and video. Cult 3D, Cycore's 3D-animation technique for the Internet, is unique on the market thanks to its combination of high quality 3D rendering, interactivity and speed without requirements for bandwidth. Cult Effects (a set of plug-ins for Adobe After Effects for video effects) is Cycore's other product. The Swedish weekly business journal "Veckans Affärer" named Cycore the 1999 IT Challenger of the Year. Cycore has 65 employees, a main office in Uppsala, Sweden and sales offices in the United States and Canada. For further information see www.cycore.com.

About Zodiak Venture Capital
Zodiak Venture Capital is managed by Brummer & Partners Capital Management and makes investments in entrepreneurial, growth-oriented companies that are not yet listed on the stock exchange. Together with Brummer & Partners Capital Management a limited number of partners have invested in Zodiak, which controls just over 400 million SEK worth of funds. For further information see www.brummer.se.