February 11, 2008

DDD SIGNS AGREEMENT WITH SAMSUNG FOR EMBEDDED 3-D HDTV CHIP

Los Angeles, California (February 11, 2008) - DDD Group plc (AIM: DDD), the 3D software and content company, today announces that it has signed an agreement with Samsung Electronics Company Ltd. (‘Samsung’) to integrate DDD’s TriDef® 3-D functions into a low cost 3-D chip for Samsung’s next generation 3-D HDTVs.

DDD and Samsung will work jointly to implement DDD’s TriDef real-time 2-D to 3-D conversion and 3-D image processing architecture in a format that is compatible with Samsung’s next generation 3-D HDTV displays. Samsung will also receive a non-exclusive license to manufacture a custom chip containing DDD’s proprietary 3-D solution for use in Samsung’s range of consumer televisions including plasma, DLP rear-projection and LCD HDTVs.

A development fee of approximately £107,000 is payable based on the achievement of certain technical milestones for a prototype chip that DDD expects to complete in the first half of 2008. Following completion of the prototype development phase, on commencement of the custom chip design and manufacture, a royalty advance of approximately £170,000 will become payable. Once the custom chip is complete, DDD will receive further quarterly royalties from Samsung for each chip included in a Samsung 3-D HDTV after Samsung has produced the first 330,000 displays.

Chris Yewdall, Chief Executive of DDD said: “We are pleased that our TriDef 3-D architecture has been selected by Samsung to power their next generation of 3-D HDTVs, demonstrating DDD’s continued leadership in the field of 3-D consumer content solutions. Samsung is a recognised leader in the flat panel television market and also in the emerging market for 3-D capable HDTVs. This agreement represents the culmination of a significant effort over the past several months by DDD’s technical and business development staff.”

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 3D displays. Its patented technologies enable 3D viewing with and 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).

Background

• 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 both with and 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 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 (2D) software 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’s solutions also enable automatic conversion of virtually any media from 2D 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 consumer electronics manufacturers for inclusion with the 3D display products supplied to their end users. DDD also licenses its software directly to end users who already own 3D displays and through an international sales channel. DDD’s customers include Sharp Corporation, Samsung and Arisawa Manufacturing Company.
• In February 2008 Samsung and DDD entered into an agreement to supply DDD’s TriDef 3D Experience software solution as part of Samsung’s 3-D accessory pack for their range of 3-D ready plasma and DLP rear projection HDTVs.
• In February 2008 DDD delivered the first embedded 3-D HDTV processor for the Hyundai IT 46” 3-D LCD TV that is based on Arisawa Manufacturing’s X-Pol 3-D materials. The TriDef Core processor decodes the 3-D television signal being broadcast to consumers in Japan on the BS11 TV network as well as converting high definition 2-D content to 3-D automatically.
• 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’ 3D mobile telephone in South Korea. DDD entered into a development and license agreement with Samsung Electronics allowing Samsung to include DDD’s 3D mobile telephone software solution in Samsung’s SCH-B710 3D mobile telephone. The license agreement yields a royalty to DDD for each handset manufactured. Samsung renewed its exclusive rights for DDD’s real time 2D to 3D conversion capabilities for use on 3D mobile phones in Korea in October 2006.
• In October 2004 DDD signed an agreement with Arisawa Manufacturing Company Limited of Japan to develop 2D to 3D 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 2D DVD and broadcast signals into 3D in real time.

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.