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Spatial Inc. Completes Acquisition of Sven Technologies, Inc.

1 July 1999

Spatial Inc. Completes Acquisition of Sven Technologies, Inc.; Acquisition Establishes Spatial's 3D Interoperability and Internet Visualization Business

    BOULDER, Colo.--July 1, 1999--Spatial Inc. (AMEX: STY), the world's leading software developer of open, component 3D modeling technology and interoperability solutions, today announced it has completed its previously announced acquisition of Sven Technologies, Inc., Palo Alto, California.
    The acquisition will provide Spatial with technologies and expertise that enhance the visualization and rendering capabilities of its entire family of 3D software products, along with providing core technology for Spatial's web-based interoperability and services strategy. Sven's rendering optimization technologies and expertise are especially well suited to rendering complex, realistic 3D models in bandwidth and processing constrained environments, such as the Internet/Intranet and the World Wide Web. This addresses issues that are particularly important to Spatial's customer base and business strategy. New products resulting from the acquisition will enable viewing of large, complex 3D CAD models across Internets, Intranets, and other network-based environments improving image quality, pre-processing times, and rendering speeds.
    The transaction was an asset purchase, which will be valued between $850,000 and $1.25 million based on Sven's ability to achieve certain performance objectives. The transaction was completed for a combination of cash and Spatial stock.

    About Spatial Inc.

    A leading innovator of 3D modeling technology, Spatial provides advanced component and interoperability products for creating, viewing, exchanging, and sharing high-fidelity 3D digital geometry.
    The ACIS(R) 3D Toolkit(TM), Spatial's flagship product, is the de facto standard 3D modeling kernel for the MCAD, CAM, CAE, and AEC industries. With more than 500 ACIS licensees and 1.4+ million end users of over 185 ACIS-enabled applications, ACIS is indisputably the world's most widely used 3D modeling kernel. ACIS-enabled applications include ABAQUS/CAE by Hibbitt, Karlsson & Sorensen, Inc., AutoCAD and Mechanical Desktop by Autodesk, Inc., CADKEY by Baystate Technologies, Inc., GAMBIT by Fluent Inc., Grade/CUBE II by Hitachi Zosen Information Systems, GSCAD by Intergraph Corporation, IronCAD by Visionary Design Systems, Inc., Maxwell 3D Field Simulation by Ansoft Corporation, MegaCAD by Megatech Software GmbH, TurboCAD Solid Modeler and Professional by IMSI, Vellum Solids by Ashlar Inc., and Working Model 3D by MacNeal-Schwendler Corporation. Spatial offers a diversity of production-proven 3D modeling component products, like Spatial Deformable Modeler(TM), a 3D surface modeling tool fOr high level artistic design and industrial styling.
    Spatial's Interoperability Products enable developers and end users to optimize engineering processes by providing efficient methods of communicating 3D models and product data across multiple CAD/CAM/CAE systems throughout the design-to-manufacturing process. Interoperability Products include comprehensive visualization solutions, like IntraVISION(TM); data translators for IGES, STEP, and VDA-FS; 3D model healing technology; and PDM integration modules.
    Headquartered in Boulder, Colorado, Spatial has offices in Europe and Asia. Spatial stock is publicly traded on the NASDAQ-AMEX exchange under the symbol "STY." For more information, visit Spatial's web site at http://www.spatial.com, or call (303) 544-2900.

    About Sven Technologies, Inc.

    Founded in 1996, Sven Technologies, Inc. is based in Palo Alto, California. Sven develops and markets 3D computer graphics software tools that enable the creation and rapid delivery of compelling, photorealistic 3D images for use in many segments of the 3D computer graphics industry. Sven's customers work in a variety of vertical markets, including industrial design, AEC, World Wide Web content development, film and video effects, game development, medical visualization, and forensic animation. Sven develops and markets Multi-Resolution Geometry, a software development kit that allows 3D graphics developers to incorporate continuous level of detail capability into their applications for extremely rapid and high quality rendering in both networked and non-networked environments. In addition, Sven markets and develops SurfaceSuite(R) PRO, an adaptive texture mapping system. For more information, visit Sven's web site at http://www.sven-tech.com or call (650) 852-9242.
    Statements made in this news release that are not historical facts may be forward-looking statements. Actual results may differ materially from those projected in any forward-looking statement. There are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. Acquisitions are inherently risky. The successful integration of Sven and Spatial may not ultimately be successful or result in the benefits described in this press release. Accordingly, the acquisition of Sven could have a material adverse affect on the Company's operations and operating results. A description of certain other risks and uncertainties attendant to Spatial Technology Inc. and its industry, and other factors which could affect the Company's financial results, are included in the Company's Securities and Exchange Commission filings, including but not limited to the Company's annual report on Form 10-KSB for the year ended December 31, 1998.
    Spatial Technology Inc., SAT, IntraVISION, and VisionShare are trademarks of Spatial Technology, Inc. ACIS is a registered trademark of Spatial Technology Inc. Sven Technologies and Multi-Resolution Geometry are trademarks of Sven Technologies, Inc. SurfaceSuite is a registered trademark of Sven Technologies, Inc. All other trademarks and registered trademarks are the properties of their respective owners.