October 27 2006

DDD MOBILE LICENSEE RENEWS EXCLUSIVE LICENSE

Santa Monica, Calif. (October 27, 2006) DDD Group plc (AIM: DDD), the 3D software and content company, today announces that their DDD Mobile licensee has just renewed its exclusive rights to license DDD’s real time 2D to 3D conversion capabilities, for use on 3D mobile telephone handsets, in their domestic market.

In 2005, following the successful completion of a development and integration agreement valued at £500,000 with one of the world’s top five mobile telephone handset manufacturers, DDD entered into a non-exclusive worldwide licensing agreement allowing the handset maker to ship DDD’s software embedded in the handset, yielding a per handset royalty to DDD. The licensee subsequently took the decision to redesign its 3D handset resulting in a delay in the expected launch date.

On 31 July 2006, the exclusive rights granted to the licensee for various territories lapsed. However, the licensee has now elected to renew its exclusive rights for their domestic market as was permitted in the original license agreement. The renewed rights will lapse on the second anniversary of the launch of a 3D handset. The licensee also retains non-exclusive worldwide rights to use DDD’s software on their 3D handsets as permitted under the terms of the license agreement.

DDD’s software engineers are presently working with the licensee’s development staff to complete the modifications to the DDD Mobile software required by the licensee’s new handset design.

Chris Yewdall, Chief Executive of DDD said: “We are pleased to announce that our licensee has renewed the exclusive rights in line with our expectations. We are naturally disappointed by the delays in introduction brought about by the decision to redesign their handset however we have been encouraged by the strong interest shown by mobile telephone carriers in our recent demonstrations. We expect that the new handset incorporating our software will be introduced in 2007.”

Enquiries:
DDD Group
Chris Yewdall, President & CEO +1 310 566-3340
e-mail: info@ddd.com

Bell Pottinger Corporate & Financial
Nick Lambert +44 (0) 20 7861-3232

Notes to Editors

About DDD

DDD, also known as Dynamic Digital Depth, is transforming the viewing experience with applications for glasses-free 3D displays. Its patented technologies enable 3D viewing without glasses; simple integration of computer graphics applications with 3D displays; supply of 3D content through 2D to 3D conversion; and 3D transmission over existing networks. DDD is quoted on the London Stock Exchange’s Alternative Investment Market (AIM: DDD).

• A new category of flat screen LCD and plasma displays are being developed and marketed by major consumer electronics companies that provide stereoscopic 3D images without the need for the viewer to wear glasses. Stereoscopic 3D images appear to have natural in and off-screen depth. 3D displays have already been included with mobile telephones in Japan and in desktop PC displays and notebook computers in North America and Japan.

• In 2003 and 2004, DoCoMo introduced two models of Sharp mobile telephone that included a 3D LCD display developed by Sharp Corporation. DoCoMo sold approximately 2.8 million 3D mobile telephones in Japan.

• In July 2005, DDD announced a two-year license agreement to integrate its DDD Mobile™ real time 3D conversion software with a 3D mobile telephone handset for one of the world’s top five handset manufacturers.

• DDD’s solutions provide an important bridge between conventional two dimensional (2D) applications and content and the new 3D displays. Normal 2D pictures, video and computer graphics images are manipulated by DDD’s patented software enabling them to be displayed on 3D displays without requiring the content to be created specially for a 3D display. DDD recently announced the ability to automatically convert still photographs and DVD video to 3D without any pre processing of the 2D image.

• DDD licenses these software applications, marketed under the TriDef® and DDD Mobile ™ brand names, to manufacturers for inclusion with the 3D display products supplied to end users. DDD also licenses the software directly to end users who already own 3D displays and through an international sales channel. Sharp Corporation and DDD entered into a multi year software licensing agreement in October 2003 that allows Sharp to include a bundle of five of DDD’s 3D software applications with Sharp’s Actius range of 3D notebook PCs sold in Japan and America.

• DDD expects to license the DDD Mobile software library to additional handset makers who wish to include 3D LCD displays in a variety of wireless devices including next generation smartphones and PDAs. The licensing arrangements are expected to yield a per unit royalty to DDD based on the number of wireless devices manufactured by the licensee. These projects may also yield one time development and integration fees associated with assisting the manufacturer in the successful integration of the DDD software with the 3D wireless device.

• DDD also intends to generate income through the conversion of existing libraries of premium mobile content including wallpaper, animations and movies. The company expects to participate in a share of the income paid by wireless subscribers who download 3D content that has been converted to 3D by DDD. In July 2005, DDD announced a partnership with Jamster! International Sarl to convert Jamster’s popular mobile phone content library to 3D for distribution to owners of 3D mobile phones .

• DDD is currently expanding the product range to allow its content solutions to be used on future 3D display products including consumer television and digital cinema.

More information is available at www.DDD.com.