NGRAIN Earns Microsoft Gold Partner Status

Rare certification reflects NGRAIN's unique, high quality Microsoft based interactive 3D Solutions for Microsoft Office

VANCOUVER, BC — July 12, 2004 —NGRAIN Corporation today announced that it has achieved Gold Partner status from Microsoft® Corp., the company's highest level certification for independent software vendors (ISVs). NGRAIN is among a small, select group of companies to receive this certification.

The Microsoft Gold Certified Partner for Software Products brings market recognition to companies that provide consistent, high quality products built on the Microsoft platform.

Using NGRAIN interactive 3D software products, users of common computers can easily embed and share interactive 3D content within Microsoft Word and PowerPoint, turning standard documents into interactive, significantly more compelling and effective communication tools.

In addition to enhanced exposure to Microsoft customers, the Gold Partner Certification program also provides NGRAIN with access to significant Microsoft technology licensing privileges and business strategy, which helps to accelerate the company's R&D initiatives, ensures early alignment with Microsoft's future direction and boosts its competitive position in the marketplace.

"The strength of our relationship with Microsoft and the Gold Partner certification reflects our long term strategic focus on advancing our technology in full alignment with Microsoft's market development strategies including Smart Client, Windows XP Tablet PC Edition and the .NET framework," says Paul Lindahl, President and CEO of NGRAIN. "The Gold Partner status is also another testament to NGRAIN's unrelenting and consistent pursuit of the development of market-driven products and partnerships."

NGRAIN products are currently built on the Microsoft .NET framework and are compatible with the Microsoft Smart Client strategy.

Allison Watson, Vice President, Worldwide Partner Sales and Marketing Group, Microsoft Corp. says: "Microsoft is committed to finding and working with partners who exemplify our practice of developing technology that makes it faster and easier for users to locate, access and use information. NGRAIN's 3D visualization and simulation solutions demonstrate the company's commitment to addressing its customers' needs through close integration with their existing business applications."

About NGRAIN
Founded in July 2000 and based in Vancouver, BC, NGRAIN is a privately-held company that designs, develops and markets interactive, 3D visualization and simulation software tools. The company's solutions enable organizations in the aerospace, defense, automotive and manufacturing sectors to more effectively communicate complex product or equipment information, on common computers. NGRAIN's product portfolio also enables interactive 3D visualizations and real-time simulations for the geospatial and medical industries.

In addition to its headquarters, NGRAIN's sales and support infrastructure includes field offices in Austin, TX; Denver, CO; Montreal, QC; Ottawa, ON; Toronto, ON; and Washington, DC. NGRAIN's investors include the Government of Canada, under its Technology Partnerships Canada (TPC) program. More information can be obtained at www.ngrain.com

For additional information, please contact:

Rebecca Chamberlain, Environics Communications for NGRAIN
203-325-8772, rchamberlain@environics-usa.com

Lawrence Cummer, Environics Communications for NGRAIN
416-969-2747, lcummer@environicspr.com