February 7, 2008

DDD ANNOUNCES DELIVERY OF TRIDEF CORE 3-D DISPLAY PROCESSOR FOR HYUNDAI IT/ARISAWA 3-D LCD HDTV

Santa Monica, California (February 7, 2008) - DDD Group plc (AIM: DDD), the 3D software and content company, today announces the delivery of the first TriDef® Core embedded 3-D image processor solution for 3-D HDTVs. The new Hyundai IT 46” LCD HDTV incorporates Arisawa Manufacturing Company’s Xpol™ 3-D optical material and is being introduced in Japan to support the recently announced BS11 3-D television programming from Nippon BS Broadcasting Corporation.

TriDef Core is a custom circuit board that integrates with the existing 2-D video electronics in the LCD HDTV. 3-D features enabled by the TriDef Core processor include decoding the BS11 3-D broadcast signal format, playback of specially encoded high definition Blu-ray Discs™ and real time 2-D to 3-D conversion of standard and high definition content.

The new 46” 3-D LCD HDTVs are already being demonstrated in Bic Camera consumer electronics retail stores in cities around Japan, including Tokyo, Osaka, Nagoya, Hokkaido and Fukuoka. Delivery of 3-D broadcast content recently began in Japan on the BS11 network, with specially made 15-minute 3-D programming including sports, fitness, and travel shows already being broadcast daily. Retail availability of the 46” 3-D HDTVs is expected in March 2008.

The delivery of the TriDef Core embedded processor is part of a £57,000 joint development agreement with Arisawa Manufacturing Co., Ltd. (‘Arisawa’) and Hyundai IT Japan Corp (‘Hyundai’). By combining the high definition 3-D image processing capabilities of the TriDef Core with the large 46” Full HD 3-D LCD displays developed by Arisawa’s optoelectronics division, Arisawa, Hyundai and DDD have delivered an impressive and immediate solution for mass-market 3D television.

Using Arisawa’s innovative 3-D optics, the flat screen 3-D televisions are capable of displaying conventional 2-D pictures as well as 3-D. When the viewer decides to watch in 3-D, they simply activate the 3-D functions using their remote control and put on a pair of 3-D glasses. The system then delivers a 3-D image from any viewing position in the living room with the same clarity and quality as the latest 3-D digital cinemas.

In addition to the real time conversion feature, the TriDef Core also supports the playback of originally made 3-D movies from Blu-ray discs. This opens a direct in-home distribution channel for the latest generation of Hollywood 3-D movies that are in production for the growing 3-D digital cinema market.

“The TriDef Core represents another substantial achievement for our company,” said Chris Yewdall, Chief Executive of DDD. “Embedding DDD’s market-leading TriDef solution in the latest 3-D televisions is the next step in delivering high quality, easy-to-use 3-D home entertainment for the consumer. It turns 3-D TV into a familiar ‘plug-and-play’ approach that is equivalent to the existing 2-D TV experience while substantially reducing manufacturing and support costs for 3-D TV manufacturers.”

“We are very pleased with the results of our joint collaboration with DDD and Hyundai,” said Dr. Sanji Arisawa, President and Chief Executive Officer of Arisawa. “The high definition 3-D images on the new Hyundai 46” LCD 3-D HDTV are stunning. We are looking forward to introducing the 3-D HDTV experience to consumers in Japan in the very near future.”

Enquiries:

Chris Yewdall, President and CEO
Tel: +1 310 566 3340
info@DDD.com

Brewin Dolphin Securities
Ken Fleming, Director - Corporate Finance
Tel +44 (0) 141 314 8114

Notes to Editors

About DDD

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

Background

• A new category of flat screen LCD and plasma displays are being developed and marketed by major consumer electronics companies that provide stereoscopic 3-D images both with and without the need for the viewer to wear glasses. Stereoscopic 3-D images appear to have natural in and off-screen depth. 3-D displays have already been included in mobile phones in Japan and Korea and in desktop PC displays and notebook computers in North America and Japan.
• DDD’s solutions provide an important bridge between conventional two-dimensional (2-D) software applications and content and the new 3-D displays. Normal 2-D pictures, video and computer graphics images are manipulated by DDD’s patented software enabling them to be displayed on 3-D displays without requiring the content to be created specially for a 3-D display. DDD’s solutions also enable automatic conversion of virtually any media from 2-D to 3-D without any pre-processing of the 2-D image.
• DDD licenses these software applications, marketed under the TriDef® and DDD Mobile™ brand names, to consumer electronics manufacturers for inclusion with the 3-D display products supplied to their end users. DDD also licenses its software directly to end users who already own 3-D displays and through an international sales channel. DDD’s customers include Sharp Corporation, Samsung and Arisawa Manufacturing Company.
• In September, 2007 Samsung launched a range of 3-D Ready DLP® rear projection HDTVs in North America. DDD’s TriDef 3D Experience software solution enables a range of popular entertainment to be enjoyed in 3-D and is available in various accessory packs including 3-D glasses. The 3-D accessory packs are available online from DDD.com and other retail and distribution channels. DDD also supplies software that allows popular PC games to be played in 3-D on the new HDTVs.
• In July, 2007 Samsung released the SCH-B710 ‘glasses-free’ 3-D mobile telephone in South Korea. DDD entered into a development and license agreement with Samsung Electronics allowing Samsung to include DDD’s 3-D mobile telephone software solution in Samsung’s SCH-B710 3-D mobile telephone. The license agreement yields a royalty to DDD for each handset manufactured. Samsung renewed its exclusive rights for DDD’s real time 2-D to 3-D conversion capabilities for use on 3-D mobile phones in Korea in October 2006.
• In October, 2004 DDD signed an agreement with Arisawa Manufacturing Company Limited of Japan to develop 2-D to 3-D conversion solutions for consumer television. The agreement included a $250,000 development project to deliver TriDef Vision+, a hardware set top box capable of transforming normal 2-D DVD and broadcast signals into 3-D in real time.

About Arisawa

Arisawa is a materials company with three divisions specializing in electrical insulating materials and industrial structure materials, electronics related materials and products, and optoelectronics related material and products. Arisawa’s optoelectronics division has been involved in the design and development of 3-D optical materials and 3-D displays since 1997. Founded in 1909, Arisawa has been listed on the Tokyo Stock Exchange since 1961. For the fiscal year ended 31 March 2007, turnover and operating income amounted to approximately £194 million and £12 million, respectively. More information can be found at www.arisawa.co.jp.

About Hyundai IT

Hyundai IT is a manufacturer and supplier of the highest quality PC monitors and digital TV’s for both domestic and overseas markets. Headquartered in Korea, Hyundai markets a range of 3-D displays including the P240W slim TFT-LCD desktop PC monitor and the new 46” Full HD 3-D LCD TV.

Trademarks:
DLP is a registered trademark of Texas Instruments. TriDef and DDD Mobile are trademarks of DDD Group plc. All other trademarks are the property of their respective owners.