NINE companies are being set up by graduates who are taking advantage of a scheme pioneered by a North-East university.

The nine are making use of a Digital Fellowship scheme, launched two years ago with the support of the European Social Fund, One NorthEast and the University of Teesside, Middlesbrough.

It aims to encourage graduates from computing, design, science and other courses to develop intriguing digital concepts with a view to commercialisation or further research.

They include Animmersion Ltd, launched by Sam Harrison, who worked with Teesside's Virtual Reality Centre for three years and won praise for his virtual reality fly-through of the design for the Gulbenkian Theatre, Northern Stage, Newcastle.

There is also moShine, which was recently awarded a contract to overhaul the computer graphics for the American Chart Show and Rusted Films, which produce short computer-generated films.

They will all show off their digital expertise at this year's DigitalCity Fellowship exhibition in the University of Teesside's Centre for Enterprise, Victoria Road, from 10am to 4pm tomorrow and Wednesday.

Computer artist William Latham is delivering a guest lecture at the University's Europa building tomorrow, at 4.30pm.

Mr Latham helped what was then Teesside Polytechnic launch its award-winning masters degree in computer graphics.

He will speak on Mutator Art and Computer Games. The lecture is free and open to the public.

Helen Gresty, of the National Endowment for Science, Technology and the Arts, will present this year's DigitalCity Fellowship awards.