Viewpoint Toolbar User Base Grows by 70% During the Last Thirty Days

Viewpoint Corporation (NASDAQ: VWPT) -- a leading provider of Internet graphics and delivery systems -- announced today that more than three million Viewpoint Toolbars have been installed by U.S. consumers on their home and business computers. The three million toolbar milestone was surpassed on September 6th.

"Breaking the three million user milestone is significant for us, given the season we're now approaching," says Jay Amato, Viewpoint's CEO and president. "The pre-Christmas shopping period is the high season for the search business, in particular 'sponsored listings' which are the primary source of revenue for search technology providers. We anticipate our three million user base and the additional users we plan to add in the next few months will perform well for us, adding significantly to the company's bottom line."

While net revenue per installed toolbar dropped to 8 cents during industry-wide August lulls, rates now appear to be rebounding to the pre-summer rate of 10 cents. Acceptance rates for the toolbar during the same period, offered via Viewpoint's Distribution Network, remained consistent at pre-summer levels.

During the Company's quarterly earnings call in August, Viewpoint set a target of reaching five million installed toolbars by the end of Q4 2004, asserting that the Company should reach operating profitability by year end -- a Company first.

"We're on track to reach our distribution and search revenue targets," adds Mr. Amato. "Additionally, we're also exploring all avenues for maximizing revenue from our growing base of users."

As a way to engender consumer loyalty and increased satisfaction, on October 1st, 2004, the Company expects to launch the 'Viewpoint Exchange,' a website complement to the toolbar, providing support and information for users. The website will allow users to choose from a growing list of skins and to create and post their own skins. The Viewpoint Exchange will also offer features such as news, in-page search, weather, stock information, horoscopes and shopping.

"The Viewpoint Exchange will be a special home for our toolbar users," says Michael Salort, Viewpoint vice president of marketing and business development. "Consumers will be taught how to create their own skins and can then post them for the world to see and download. Over time, they will also be able to communicate with each other so that their toolbar experiences continue to evolve. For these reasons, we're very excited about the imminent launch of the Viewpoint Exchange and the expansion of our search business into new growth areas."

On October 1st, through the Viewpoint Exchange, the Company will release new Astrology skins that for the first time proactively deliver content into the toolbar. Users can select from skins designed for each sign of the zodiac and will then receive daily, weekly and monthly horoscopes automatically into a fourth tray of the toolbar.

"What's especially significant about the astrology skins is that they demonstrate the power and uniqueness of the architecture of our product," adds Mr. Salort. "Because we can deliver content of all types -- text, images, rich media and video -- into the toolbar, we provide consumers with a unique and dynamic toolbar experience."

Version 1.0 of the Viewpoint Toolbar was released on March 17, 2004, followed by the official release of Version 2.0 in early July. The toolbar provides users with features such as Visual Bookmarks, Image and Text Search Results within a toolbar tray, Advanced Pop-Up Blocking, Comparative Search and Custom Skinning. Since its launch, Viewpoint has released twenty custom skins (available at: http://www.viewpoint.com/pub/toolbar/skins.html) and the product has received positive reviews from leading publications -- most recently CNET's Download.Com, which gave the toolbar a four-out-of-five star rating.

"We are very optimistic about Viewpoint Corporation's prospects for the future," says Jay Amato. "With our search initiative and other lines of business continuing to improve steadily and measurably, we foresee a strong end to 2004." www.viewpoint.com

About Viewpoint

The Viewpoint Platform is the technology behind some of the most innovative, visual experiences on the Web and on the desktop with leading clients such as America Online, General Electric, General Motors, Hewlett Packard, IBM, Lexus, Microsoft, Samsung, Scion, Sony and Toyota. Creative Innovator -- the Company's next-generation ad deployment and management system -- and the Viewpoint Toolbar -- the Vision for the Future of Search -- are the latest breakthrough technologies using the full power of the Viewpoint Platform.

This press release may contain "forward-looking" statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and similar expressions that reflect Viewpoint's current expectations about its future performance. These statements and expressions are subject to risks, uncertainties and other factors that could cause Viewpoint's actual performance to differ materially from those expressed in, or implied by, these statements and expressions. Such risks, uncertainties and factors include those described in the Company's filings and reports on file with the Securities and Exchange Commission as well as the lack of assurances that Viewpoint's three million user base and the additional users it plans to add in the next few months will perform well for the Company, adding significantly to the company's bottom line; or that Viewpoint is "on track to reach its distribution and search revenue targets"; that the Company will reach its target of five million installed toolbars by the end of Q4 2004 and will be operating profitability by year end; that on October 1, 2004, the Company will launch the Viewpoint Exchange and that users "will also be able to communicate with each other so that their toolbar experiences continue to evolve"; or that with its search initiative and other lines of business continuing to improve steadily and measurably that the Company foresees a strong end to 2004.