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# 1.

Official Company Statement from Hillcrest Labs about Sony relationship:


"Hillcrest Labs has signed a worldwide IP licensing agreement that will provide
Sony Computer Entertainment Inc. (SCEI) with access to Hillcrest's patent portfo
lio for Freespace(R), the company's in-air pointing and motion-control technolog
y. Additional details about the agreement, however, are not being disclosed."
# 2. Hillcrest Labs/LG Press Release:
Hillcrest Labs Tapped by LG to Bring Motion Control to First 3DTV Internet- Conn
ected LED LCD HDTVs
- Hillcrest Labs' Patented Freespace(R) Technology enables LG's "Magic Wand" Rem
otes for its INFINIA LED LCD HDTVs -
- New LG TVs Will Enable Consumers to Simply Point-and-Click to Control Content
-
- LG Signs World Wide Agreement to License Hillcrest Labs' Freespace Motion Cont
rol Solution -
Rockville, MD -- August 25, 2010 -- Hillcrest Labs disclosed today that LG Elect
ronics is using Hillcrest Labs' patented Freespace(R) in-air pointing and motion
control technology for LG's first 3D-ready, Internet-connected HDTVs that are c
urrently shipping in the Korean market and will be available globally. LG and Hi
llcrest have entered into a world wide license agreement for LG to use Hillcrest
Labs' patented Freespace in-air pointing and motion control solution in current
and future products.
The "Magic Wand" remote, powered by Hillcrest Labs' Freespace technology will be
included in certain models within LG's new INFINIA line of LED LCD HDTVs. The I
NFINIA sets combine a slim design, a thin bezel, and an enhanced Internet connec
tivity package with a variety of entertainment options, including LG's NetCast E
ntertainment Access(TM). In addition to the wired Ethernet jack in the INFINIA s
ets, these NetCast-enabled TVs can integrate into a wireless home network by usi
ng a USB wireless broadband adaptor (sold separately). The INFINIA models are th
e first to use LG's unique "Magic Wand" remote control system.
LG's "Magic" user interface brings together Internet-based applications, televis
ion menus, embedded games, and more using simple hand motions to control an on-s
creen cursor on the television. Consumers using the "Magic Wand" remote with Net
cast will be able to access and navigate Internet-based applications specificall
y designed for the TV, without the need of a computer.
"Decades ago, the mouse transformed the entire computer industry, and ushered in
a new era of simplicity and interactivity for consumers around the world," said
Kwon IL Geun, vice president of LCD TV Lab of LG Electronics. "Our new INFINIA
LED LCD HDTV sets are positioned to do the same for television. Thanks to the pi
oneering efforts of Hillcrest Labs, we have been able to create a first-of-its-k
ind, mouse-like experience for television that was specifically designed for our
new connected TVs."
"We are very proud to be working with LG, one of the world's most respected TV b
rands," said Dan Simpkins, CEO of Hillcrest Labs. This is a tremendous milestone
in the history of our company and our efforts with interactive television."
"As more over-the-top content choices become available on TV, conventional up-do
wn-left-right-remote control systems simply will not scale," said David Mercer,
vice president and principal analyst of the Digital Consumer Practice at Strateg
y Analytics. "Pointer-based interfaces like Freespace are far more efficient and
fun. LG is the first TV manufacturer in the world to recognize and apply this c
oncept to televisions, and we believe that it will be a siren call for the rest
of the TV industry."

Freespace and the Magic Wand


Hillcrest Labs' Freespace technology is a complete solution for in-air pointing
and motion control that can be added to a wide range of CE devices, including: r
emote controls, game controllers, mobile handsets, PC peripherals and more. The
LG Magic Wand system utilizes Freespace to make a remote control with the most a
dvanced in-air pointing and motion control capabilities on the market today. The
se include:
- High Resolution Pointer Accuracy: The Magic Wand is a highly precise pointing
remote control which allows users to easily select icons and images, small and l
arge, on a high-resolution screen.
- Orientation Compensation: Regardless of the orientation of the Magic Wand remo
te in space (e.g. pointing at the ground, turned sideways, etc.), Freespace tech
nology generates intuitive cursor motions on the screen. MEMS (Micro-Electro-Mec
hanical Systems) sensors combined with Hillcrest's proprietary software enable c
onsistent control of the device from any position -- standing, sitting or reclin
ing.
- Adaptive Tremor Removal: Hillcrest's technology can distinguish between intent
ional and unintentional movement, including natural hand tremors. This means the
Magic Wand's cursor does not shake or jiggle on screen like that of a Wii-like
game controller. Instead of employing simple filtering techniques, which would r
educe the accuracy of the pointer, the Magic Wand dynamically measures and remov
es each individual user's tremor while maintaining low latency of motion.
- No Line-of-Sight: Unlike conventional infrared devices and optical motion-sens
ing devices that require "line-of-sight" operation, the Magic Wand remote uses R
F (radio frequency) technology, so users do not need to point directly at the co
mputer or TV screen. This gives users greater freedom to move around at a range
of up to 30 feet across the living room.
Freespace technology enables full six degree-of-freedom motion, and is the same
award-winning technology used in Hillcrest's Loop(TM) pointer -- an in-air mouse
designed for consumers who connect their computers to a television. Companies t
hat have licensed Freespace for use in their products include: Eastman Kodak, LG
Electronics, Logitech, Universal Electronics (UEI), and others. Hillcrest Labs'
solution is backed by a broad set of intellectual property including more than
40 issued patents, out of more than 200 filed by the company.
For additional information about LG INFINIA LX 9500 LED LCD HDTVs, visit http://
www.lge.com/us/infinia/index.jsp. For additional information about Hillcrest Lab
s, visit www.hillcrestlabs.com.

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