| biz.yahoo.com 
 Wednesday December 16, 8:05 am Eastern Time
 
 Company Press Release
 
 U.S. Patent Office Approves New
 ModaCAD Patent On Key Visualization
 Technology
 
 Technology Key in Development of Interactive Digital Dressing Rooms Featuring Apparel Fitted to Users' Dimensions
 
 LOS ANGELES--(BUSINESS WIRE)--Dec. 16, 1998-- ModaCAD Inc. (Nasdaq/NM:MODA - news) Wednesday announced that the company has received from the United States Patent and Trademark Office a notice of allowance of the company's pending patent application for a ''Method and Apparatus for Mapping Two Dimensional Texture on Three Dimensional Surfaces.''
 
 This process allows for placing two-dimensional textures on three-dimensional object models and showing the finished results in real time. This technology provides ModaCAD with the capability to create a digital dressing room featuring apparel that can be fitted to a user's dimensions and shown photo-realistically and in 3-D.
 
 Currently, many of the available graphical technologies for simulating fit require time-consuming photographic processes to prepare a single item. This has meant that these technologies have not been able to be deployed widely because of the cost of authoring content in suitable formats.
 
 ''ModaCAD's new process allows us to generate such content very quickly and have it automatically adapt itself to all the permutations of color and texture. ModaCAD plans to exploit these processes in its e-commerce projects as well as in its business-to-business solutions. We also expect to license this process to other interested parties,'' stated Maurizio Vecchione, ModaCAD's president and chief operating officer.
 
 ModaCAD's technology is also key in product display for other categories such as home furnishings, home decorating and automotive. ModaCAD is a premier developer and supplier of digital content management technology enabling advanced product visualization for electronic commerce.
 
 For the past 10 years it has leveraged its core, patented rendering technology into a variety of electronic merchandising products primarily targeted at the home design, home furnishings, apparel, and industrial design industries.
 
 ModaCAD Inc. can be found on the Internet at www.modacad.com.
 
 The matters discussed in this news release contain forward-looking statements that involve risks and uncertainties which are described in the company's Securities and Exchange Commission reports, including the 10-K for the period ended Dec. 31, 1997.
 
 Contact:
 
 ModaCAD Inc., Culver City, Calif.
 310/751-2100
 310/751-2120 (fax)
 Gail Laguna (investor relations)
 glaguna@modacad.com
 Linda Freedman
 lfreedman@modacad.com
 modacad.com
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