ISee3D Inc.

ISee3D Inc.

April 16, 2007 13:16 ET

ISee3D Inc. Announces Its Intention to Commercialize Its Patents and Reactivate as a TSX-Venture Issuer

MONTREAL, QUEBEC--(CCNMatthews - April 16, 2007) - ISee3D Inc. ("ISee" or the "Corporation")(TSX VENTURE:ICT.H), a company that has been fundamentally inactive since 2002 and which is currently listed on NEX, is pleased to announce that it will be seeking regulatory approval to reactivate (the "Reactivation") as a tier 2 issuer on the TSX Venture Exchange (the "Exchange").

The Reactivation is proposed to be effected without either a Change of Business or a Reverse Take-Over (as such terms are defined in the Exchange Policies). Management's plan of Reactivation involves the Corporation commercializing its existing patents, which are related to three-dimensional stereoscopic imaging. ISee's Patents have a variety of potential uses including in medicine, dentistry, entertainment and Internet streaming video.

CEO, Morden C. Lazarus stated, "we have come to realize that our existing patented technology has value and, given management's previous successes and their knowledge, skills and experience in the field of three-dimensional technology, we are excited about the prospects of commercializing our proprietary technology and, therefore, restoring value to our shareholders." Mr. Lazarus continued, "we are of the belief that our technology was too advanced to be commercialized a few years back and market acceptance and opportunities for its commercialization are only now becoming available".

ISee currently holds two key patents; U.S. Patent No. 5,828,487 entitled "Stereoscopic Viewing System Using A Two Dimensional Lens System," which issued on October 27, 1998 and U.S. Patent No. 6,151,164 also entitled "Stereoscopic Viewing System Using A Two Dimensional Lens System," which issued on November 21, 2000.

Each Patent discloses and claims a different approach to stereoscopic imaging and viewing. The system claimed in the Patents eliminates the necessity of two separate imaging systems and, therefore, requires only a single image path between an image and a camera. This permits the utilization of existing two-dimensional lens systems (such as endoscopes, boreoscopes, microscopes and telescopes) to produce a three-dimensional visual.

Specifically, the system includes a two-dimensional lens system positioned on a single image path and a switching device having an opaque leaf positioned between the two-dimensional lens system. The opaque leaf is movable in the single image path from a left position to a right position to provide a left image perspective and a right image perspective of the image path to a camera. These left and right image perspectives are required for stereoscopic viewing. The system is further equipped with electromagnetic devices moving the opaque leaf between the left position and the right position and retaining the opaque leaf stationary in each position for a sufficient time for the camera to completely view each image perspective. The system also includes a stereoscopic viewing device to view the left image perspective from the camera with one eye of a viewer and to view the right image perspective from the camera with the other eye of a viewer. The stereoscopic viewing device is synchronized with the electromagnetic devices moving the opaque in a way that allows the viewer to see only the left image perspective with the one eye and only the right image perspective with the other eye.

In connection with the proposed commercialization of its Patents, ISee has retained the services of Tom Mitchell, one of the co-inventors of the original Patents. Mr. Mitchell stated, "with the rise of significant improvements in 3D display technologies it opens the door to many new markets for ISee's high resolution stereoscopic imagery."

Recently, ISee commissioned a "Patent Due Diligence Study" by Ms. Anna Vishev, a patent attorney of the New York-based firm Ostrolenk,& Soffen LLP. The Study has concluded that ISee's patents are "enforceable and have a reasonably broad protection afforded by their claims."

Additionally, none of the prior art references, whether previously cited during prosecution of these Patents or uncovered as a result of ISee's independent search, disclose the invention recited in the Claims of the Patents. Furthermore, the scope of the Claims has not been limited by either specifications or prosecution histories of these Patents.

All necessary formalities required to keep the Patents in force have been complied with. Further, management conducted a market research study and concluded that spectrometry is increasingly becoming a valuable and highly competitive market, with global consumer electronics companies securing their patent stakes in this market segment. "We are of the belief that the '487 and '164 Patents represent a significant asset in a highly desirable and prominent three-dimensional market", stated Mr. Lazarus.

The proposed Reactivation also involves a private placement of up to 4,333,333 Units at CAD$0.30 per Unit to raise up to CAD$1,300,000 (the "Private Placement"). The gross proceeds of the Private Placement will be used as general working capital and for the commercialization of the Corporation's existing patents and the implementation of the Corporation's new business model.

Each Unit issued pursuant to the Private Placement will consist of one common share and one common share purchase warrant. Each full warrant will entitle the holder to purchase one additional common share at a price of $0.50 per share for a period of eighteen months after the closing of the private placement. The Corporation, however, will reserve the right, but not the obligation, subject to the forwarding of a fifteen (15) days' written notice, redeem for cancellation all warrants issued under the Private Placement (for a redemption price of $0.001 per warrant) at any time after the Corporation's listed common shares have been trading above a daily close of $0.60 for fifteen (15) consecutive trading days.

The Common shares issued (and those issued on exercise of the warrants) will have a hold period of four months from the closing of the Private Placement.

The Private Placement is expected to close contemporaneous with the receipt of Exchange approval of the Reactivation.

"The raise that we are pursuing will be used to fund the commercialization of our existing patents as well as fund the development of the infrastructure of the Corporation," stated Dwight Romanica, President.

ISee expects to pursue a licence and royalty business model and anticipates entering into joint venture arrangements in key market verticals. It is anticipated that a typical licence package will involve a manufacturer acquiring the rights to use ISee's Patents and other applicable intellectual property. Along with such rights a manufacturer would receive ISee's support and access to knowledge needed for transforming the technology into a commercialized product. The license is based on an initial payment and an on-going revenue-based royalty. In summary, revenues would be derived from the technology transfer, the right to use the Patents and the provision of ongoing technical support during the individual product's start-up phase.

On April 2, 2007, at its Special AGM, the Corporation's shareholders approved a 15:1 consolidation of the Corporation's outstanding common shares. As of the date hereof, the Corporation has 6,258,381 issued and outstanding common shares.

At such Special AGM, ISee's shareholders elected Morden C. Lazarus, Rene Arbic, Dwight Romanica and Ilya Sorokin as directors of the Corporation.

The Corporation's management team presently consists of Morden C. Lazarus, Chairman and acting CEO, Rene Arbic, acting CFO, Dwight Romanica, President and Ilya Sorokin, CTO.

Completions of the transactions described herein are subject to Exchange acceptance. There can be no assurance that the transactions described herein will be completed as proposed or at all.

Investors are cautioned that any information released or received with respect to the Reactivation may not be accurate or complete and should not be relied upon. Trading in the securities of ISee3D Inc. should be considered highly speculative.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transactions described herein and has neither approved nor disapproved the contents of this press release.

Cautionary Statement

No stock exchange, securities commission or other regulatory authority has approved nor disapproved the information contained herein. The News Release includes certain "forward looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of ISee, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from ISee's expectations include, but may not be limited to, those risks detailed from time to time in the filings made by ISee with securities regulations.

The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy and accuracy of this release.

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