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In 2001, senior management at [[NewTek]] (makers of LightWave) and their key LightWave engineers disagreed regarding the notion for a complete rewrite of LightWave's work-flow and technology.<ref>{{Cite web |url=http://forums.luxology.com/discussion/topic.aspx?id=18008 |title=Modo – What Lightwave Should Have Become. |work=The Foundry Forums |publisher=[[WP:SPS|Self-published]] |date=21 June 2007 |url-status=dead |archiveurl=https://web.archive.org/web/20090215234008/http://forums.luxology.com/discussion/topic.aspx?id=18008 |archivedate=15 February 2009 |df=dmy-all }}{{SPS|date=May 2014}}</ref>{{SPS|date=May 2014}} NewTek's Vice President of 3D Development, Brad Peebler, eventually left Newtek to form Luxology, and was joined by Allen Hastings and Stuart Ferguson (the lead developers of Lightwave), along with some of the LightWave programming team members (Arnie Cachelin, Matt Craig, Greg Duquesne, Yoshiaki Tazaki).
After more than three years of development work, Modo was demonstrated at [[SIGGRAPH]] 2004 and released in September of the same year. In April 2005, the high-end visual effects studio [[Digital Domain]] integrated Modo into their production pipeline. Other studios to adopt Modo include [[Pixar]], [[Industrial Light & Magic]], [[Zoic Studios]], [[id Software]],
Modo 201 was the winner of the [[Apple Design Awards]] for Best Use of [[macOS|Mac OS X]] Graphics for 2006. In October 2006, Modo also won "'''Best 3D/Animation Software'''" from [[MacUser]] magazine. In January 2007, Modo won the [[Game Developer (magazine)|Game Developer]] Frontline Award for "Best Art Tool".
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