EON Reality Will Be First Company to Bring Next-Generation 3-D Technology to Market

Microsoft’s technology, made available through the IP Ventures program, will be used to turn science fiction into reality.

MOUNTAIN VIEW, Calif. — July 18, 2006 — Tomorrow at the Business of Innovation conference, Microsoft Corp. will announce it has licensed technology, code-named “TouchLight,” which it developed in its Redmond, Wash., research lab, to EON Reality Inc., a leading interactive visual content-management software provider. The technology will augment EON’s visualization offerings with its cutting-edge ability for users to physically interact with 3-D visual content. Completed as part of Microsoft’s IP Ventures program, an initiative that allows companies to refine and sell early-stage technologies first developed by Microsoft, the agreement is the latest based on a shared-success business model that fosters opportunity for startup companies in California and other technology hubs around the world.

“By minimizing the cost and the learning curve for us, this technology holds more promise for increased adoption and popularity in the market than was previously possible,” said Sean O’Brien, executive vice president of EON Reality. “We are excited to be the first company to offer this kind of virtual interactivity, invented by Microsoft. Microsoft’s willingness to share its innovation with our company helps enable our mutual success in this segment of the market.”
EON Reality will incorporate the “TouchLight” interactive display technology into its existing commercial, automotive, aerospace and defense industry product lines. EON’s customers will be able to use the technology for dynamic marketing displays, product demonstrations and truly interactive training experiences. Within the next two years, EON estimates that the technology will be used in stores to facilitate advanced shopping experiences and interactive technical support with products and assemblies appearing to float in the air during interaction. EON estimates that within the next 24 to 36 months this technology could be affordable enough for desktops.

Microsoft Continues to Invest in California Business

The agreement with EON, whose headquarters are in Irvine, Calif., is another example of Microsoft’s ongoing investment of technology, expertise and business support in startups and small businesses. The IP Ventures program is built on the premise that startup companies can develop their own marketable products by licensing or purchasing pre-commercial technology developed by Microsoft, and that Microsoft and the startup can each benefit financially from the success of the alliance. In all IP Ventures arrangements, Microsoft contributes access to innovative technology developed as part of its multibillion-dollar research and development (R&D) investment, while the startup or small business provides its expertise in creating a market-ready product and building a revenue stream around the technology.

“We’ve worked with EON Reality to turn a cutting-edge prototype from our research lab into a marketable product, which is the purpose of the IP Ventures program,” said Daniel T. Ling, corporate vice president of Research at Microsoft. “IP Ventures is just one of the channels through which we connect ideas and innovations with people and funding to provide customers and partners with the most empowering solutions and advanced technology at their fingertips.”

Innovative Program Connects VCs and Entrepreneurs With Microsoft Innovation

The dynamic IP Ventures program was launched in May 2005 to expedite commercialization of new innovations generated from the company’s significant R&D investment. The program is available globally and is frequently updated with new technology offerings. IP Ventures alliances already include Enterprise Ireland, the Finnish National Fund for Research and Development (Sitra), Inrix, Skinkers, Softedge-Systems, Vimio plc and Wallop Inc.

About EON Reality Inc.
EON Reality, Inc. is the world’s leading interactive visual content management software provider. EON’s products have a high level of interactivity, simulation realism, rendering quality and integrated data exchange capability optimized for high performance on today’s standard PCs and Internet. Many large corporations, universities and colleges are using EON’s software and integrated system solutions, such as: Airbus, Atlas Copco, Siemens, Bechtel, Boeing, Bombardier, Hon, Intel, Kodak, Lexus, Lufthansa-Teknik, Peterbilt, Samsung, Sauder, Siemens Medical, Suzuki, Tetra Pak and Toyota. For more information about EON Reality, Inc., please visit www.eonreality.com.

About Microsoft
Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.