Virtual worlds and games that replicate and extend real world experiences, entertainment and commerce represent one of the world's fastest growing markets. But most efforts to develop realistic virtual worlds have been of modest quality or have limited functionality and scalability. Xulu is uniquely positioned to become a key enabler and provider of a new generation of HD-quality virtual worlds without such limitations.

Xulu is developing a new type of interactive experience based on massively distributed physics simulation that delivers unprecedented realism and variety in a virtual world. It is capable of supporting up close and personal social interactions, alongside full high-end gaming and sporting experiences. The system provides open API's and a complete set of tools that allow both professional and novice users alike to contribute a broad range of highest quality content. Unlike competing virtual worlds, the Xulu platform scales gracefully for a million or more simultaneous users, and with minimal reliance on centralized servers. Xulu harnesses the power of leading-edge GPUs and CPUs to deliver ultimate online end-user experiences.

A starting library of richly detailed and editable graphics-physics models for virtual humans, creatures, ground, air, space and submersible vehicles, and other world objects will enable great diversity and endless replay for users. Virtual humans, implemented using a blend of multi-body physics and motion-capture technology, produce real-time motion that is natural and believable. Physics also plays a key role in connecting with immersive human interfaces such as touch, motion, facial recognition, voice, sound, gesture, brain-wave, and Wii(TM)-type, as well as traditional controllers.

Compelling content is a key element of a successful launch, and is needed to attract a large initial audience that will drive demand for Xulu's platform and generate early revenue. Xulu's content will showcase the beginnings of an expanding universe with both real-world and fantasy-world elements. It will include a range of seed activities from extreme sports and gaming to gentle self-paced sightseeing excursions, episodic adventures, face-to-face socializing and play, and support for vibrant and viable communities. Third party and user-created entertainment, businesses, goods, and services will follow.

Revenue will come from the sale of virtual goods, special memberships, naturally placed in-situ advertising, sponsored content, and partnerships. Public marketplaces and open interchange standards will foster commerce and exchange of virtual goods and experiences within the Xulu world, between 3D worlds, and among individuals.

Xulu Entertainment's team includes the founder and top developers from Cadence Design Systems* (NYSE: CDN), along with internal and consulting lead talent from Disney, Lucasfilm, Sony, Universal, LucasArts, and other premier entertainment, media, and technology companies. Xulu is leveraging more than 100 man-years effort in a prior related project that included the development of the first generation of the technology, virtual destinations, and multi-player games.