For Immediate Release

ARBORETUM RELEASES ITS SECOND HYPERENGINE-AV UPGRADE

Mac OS X multimedia editor seamlessly combines video, photo, audio and text
files with an interface anyone can master.

IRVINE, CALIFORNIA – SEPTEMBER 2, 2002 – Arboretum Systems is pleased to
announce the release of HyperEngine-AV 1.2.1. HyperEngine-AV, formerly
known as “Montage”, is the exact same product as Montage, only the name of
the product has been changed.

HyperEngine-AV Version 1.2.1 offers these new features:
– A new protection scheme that does not require users to communicate
their machine’s host ID number.
– A free Hyperprism Hall Reverb audio processor is added to the list
of the 10 others already available.

HyperEngine-AV is the first media software that lets creators work like
they think. HyperEngine-AV features a groundbreaking “trackless” workspace
that allows the free manipulation of video, audio, stills, and text in an
infinitely expandable window.

The only consumer-priced alternative to Apple’s iMovie software,
HyperEngine-AV was built for OS X from the ground up. “HyperEngine-AV was
created for aspiring moviemakers who literally think ‘outside the box,'”
said Arboretum CEO, Georges Jaroslaw. “If you can see a movie in your mind,
you can easily create it in our software by placing and editing clips in
the workspace. The user interface is completely transparent.”

Media clips can be imported or captured in real time from a FireWire DV
camera using remote machine control. They appear in the document window in
the form of objects that can be freely arranged and they are distiguishable
by their colors and the data they contain.

Positionning them along the time line, stacking them, trimming their
beginnings and ends, time-stretching, splitting, fading them and many more
basic actions, are quickly and easily done with simple mouse strokes. These
actions immediately give a clear visual feedback on the changes made. This
greatly enhances intuitive interraction with a project at all the stages of
the creative process and only requires a very smooth learning curve to
master.

Clips can be nudged frame by frame, and locked to the timeline to prevent
accidental shifts. Natural magnetic properties of the objects themselves
make it easy to sync an audio clip to a movie or stretch a clip to match
the duration of another one.

Time-stretching audio and video both give excellent quality results: motion
speed change for video and tempo change for audio even with at high ratios.

When video clips are dragged on top of each other instant dissolves are
created – clicking on the resulting connection graphic brings up a
selection of fully editable professional compositors, transitions, and
wipes. In addition, over a dozen QuickTime=AE video effects including edge
detection, emboss, film noise, and color tint are available and can be
applied to any video clip; a realtime preview box takes the guesswork out
of adjusting effect parameters. Text boxes can be placed over video clips
or keyed against an editable background with adjustable duration for
scrolling.

The Overview window always displays a project completely, no matter how
many hours long. The Overview makes it extremely simple to zoom in on any
portion of a project, plus move individual clips and even entire scenes at
once. Views can be saved at any zoom levels to quickly go from one scene to
the other, from a general to a detailed view, or browse through different
scenes. Media files can also be dragged and dropped from the Finder
directly into the Overview. This makes the Overview much more than a
simple zooming interface and saves a lot of time in scroll actions.

With Arboretum’s prestigious history as a music software developer,
HyperEngine-AV’s audio capabilities are second to none. Audio clips can be
edited, arranged, stacked, and processed to generate stunning soundtracks.
There is no track limit because . . . there are no tracks. The program
comes with a wide variety of studio-quality effects from Arboretum’s
acclaimed Hyperprism suite of processors, and more can be added via a
flexible plug-in architecture – including the popular Ray Gun and Ray Gun
Pro for cleaning up scratchy vinyl, tape hiss, hum, and other problem
recordings. HyperEngine-AV will also come with over 70 royalty-free audio
clips from celebrated sound designer Frank Serafine (Star Trek, TRON,
Poltergeist, Hunt for Red October, Virtuosity). Users of video programs who
want to enhance their final movie with cutting-edge audio will find
HyperEngine-AV an ideal complement to their current software.

HyperEngine-AV is designed for novice digital moviemakers or professionals
who want a dynamic, productive new type of workspace. The software will be
available in January 2003 at an MSRP of $149 and a special introductory
price of $99. Demo versions of the full Hyperprism, Ray Gun, and Ray Gun
Pro for OS X are included with the program. A free trial version of
HyperEngine-AV will be available at www.arboretum.com.

SYSTEM REQUIREMENTS
System requirements include an Apple Macintosh computer with a G4 processor
(500MHz or faster recommended), 128MB of RAM, 20GB of free hard disk space,
a FireWire port for video transfer, a CD-ROM, QuickTime v6.02 or later, and
Mac OS X v10.2 or later. A color monitor that supports at least 800 x 600
resolution is recommended.

STANDARD FORMATS & EFFECTS
HyperEngine-AV imports all commonly accepted Mac formats including 3DMF,
AIFF, Audio CD, AVI, BMP, Cubic VR, DLS, DV, FLC, FlashPix*, GIF,
JPEG/JFIF, Macromedia Flash 5, MIDI, MPEG-1, MP3, M3U (MP3 Playlist files),
MPEG-2*, MPEG-4 (MP4), Photoshop*, PICS, PICT, PNG, QuickTime, SF2
(SoundFont 2), Sound, Text, TIFF*, Virtual Reality (VR), and WAV. (*Some
limitations may apply.)

Movies can be exported as AIFF, AVI, BMP, DV Stream, FLC, JPEG/JFIF, JPEG
2000 (Mac OS X only), MIDI, MPEG-4, Photoshop, PICT, PNG, QuickTime, System
7 Sound, Text, TIFF, and WAV.

Built-in video transitions include Alpha Compositor, Channel Compositor,
and Chroma Key (compositors); Crossfade, Explode, Implode, and Zoom
(transitions); and Gradient Wipe, Iris, Matrix Wipe, Push, Radial, Slide,
and Wipe (wipes).

Built-in video effects include Alpha Gain, Brightness, ColorSync, HSL
Balance, and RGB Balance (adjustments); Blur, Edge Detection, Emboss,
General Convolution, and Sharpen (filters); and Color Style, Color Tint
with B&W/Sepia/X-Ray/Cobalt settings, Film Noise, and Lens Flare (special
effects).

Free built-in audio effects include Hyperprism’s Auto Pan, Band Pass, Band
Reject, Hi Pass, Flanger, Lo Pass, More Stereo, Ring Modulator, Tremolo,
and Vibrato.

The remaining Hyperprism range of effects include Bass Maximizer, Chorus,
Compressor, Doppler, Echo, EchoTranz, Formant Pitch Shift, Frequency
Shifter, Hall Reverb, Harmonic Exciter, High Shelf, HyperPhaser, HyperVerb,
Limiter, Low Shelf, M-S Matrix, Multi Delay, Noise Gate, Pan, Parametric
EQ, Phaser, Pitch Changer, Quasi Stereo, Room Reverb, Single Delay, Sonic
Decimator, Stereo Dynamics, Tube/Tape Saturator, and Vocoder. Hyperprism,
Ray Gun, and Ray Gun Pro will be available as separate plug-in products
with HyperEngine-AV 1.2.1. Apple’s Audio Unit format will be supported in a
subsequent release.

COMPANY INFORMATION
Founded in 1993, Arboretum Systems manufactures, distributes, and licenses
video and audio software solutions for digital video editing, film/video
post-production, music recording, multimedia, broadcast, and audio
restoration to professional and consumer markets on a worldwide basis. More
information is available at www.arboretum.com.