FOR IMMEDIATE RELEASE

nFX CORPORATION BRINGS GAMEWORKS CHAT TO THE WORLD

SANTA CLARA, Calif. (May 29, 1997) -- nFX Corporation today announced that GameWorks has utilized its communication graphics technologies to develop a cutting-edge communication program called GameWorks Chat. The game begins when players choose not only a mask to represent their online identity, but an environment they wish to visit as well. In the course of any chat session, the program recognizes key words which trigger a variety of emotional responses from a guest's mask. For example, when words such as "dazzled" or "enchanted by" enter the conversation, looks of total surprise or glazed-over affection animate a player's mask.

While visiting "The Loft" section of any GameWorks site, guests can access the game through the GameWorks Intranet, a networked, online entertainment system found exclusively at GameWorks sites. The game currently gives players four masks to choose from, (including a robot, cowgirl, dog, or superhero) as well as the ability to manipulate the character in real time. These elements combine to give GameWorks Chat an immediacy and a visual edge that separates it from all other avatar-based chats.

With a click of the mouse, characters can express a range of emotions that reveal varying degrees of expression. By activating custom "Emotion Icons," or adjusting unique slider controls with titles such as "Windows to the Soul" and "Big Mouth Meter," online conversationalists can animate an avatar as never before.

"This GameWorks Chat is a sample of the next generation of more personalized, interactive graphics for on line communication and interactive multimedia - areas which have been limited to static images or linear, pre-scripted animation," said Joel Voelz, president and CEO, nFX Corporation. "Its been a terrific experience working with GameWorks to create this custom application. The Stage 35 design team is made up of the finest creative talent in the world. Now they've brought their unique perspective to the world of chat. Together, GameWorks and nFX are defining play-based entertainment."

"nFX's technology allows us to take the experience of chat into a new place, a masquerade where guests can flirt and play by their own rules," said GameWorks' senior vice president of Design, Jon Snoddy.

Underlying the GameWorks Chat is the core nFX technology based on neural-nets and vector graphics. The multi-dimensional aspect of nFX's technology allows it to transcend typical morphing. This capability gives chatters creative power over new images, allowing individuals to select variations along any dimension or feature. When coupled with vector graphics, guests of the Internet Lounge can render unique animated images in real-time.

nFX technology and models actually learn to produce images based on examples. In GameWorks Chat, these examples are a set of original characters created by GameWorks' artist Bill Stout. The technology also doesn't restrict the extent of artistic expression. For example, in GameWorks Chat, when the guest opens or closes a characters mouth, the other facial features respond accordingly.

nFX Corporation is a venture-backed, Santa Clara-based firm bringing real-time, interactive, "Living Graphics" to multimedia programs and the Internet. Founded in 1993, nFX is a spin-off of the Massachusetts Institute of Technology.

GameWorks is the main business of Sega GameWorks L.L.C. Other GameWorks activities include Arcade and Route Operations, which owns and operates numerous arcade and SegaCity locations, and Game Sales, the exclusive distributor of Sega arcade games for North and South America. The managing members of Sega GameWorks are wholly-owned subsidiaries of each of Sega Enterprises, DreamWorks SKG and Universal Studios, Inc. Universal Studios, Inc. is a unit of the Seagram Company Ltd., a global beverage and entertainment company.

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For more information on the nFX Chat System technology, see our InterCOM announcement.


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