Ummm no, it was shader 3 with HDRR
Complex shader effects began their days with the release of Shader Model 1.0 with DirectX 8. Shader Model 1.0 illuminated 3D worlds with what is called standard lighting. Standard lighting, however, had two problems:
Lighting precision was confined to 8 bit integers, which limited the contrast ratio to 256:1. Using the HVS color model, the value (V), or brightness of a color has a range of 0 255. This means the brightest white (a value of 255) is only 255 levels brighter than the darkest shade above pure black (i.e.: value of 0).
Lighting calculations were integer based, which didn't offer as much accuracy because the real world is not confined to whole numbers.
On December 24, 2002, Microsoft released a new version of DirectX. DirectX 9.0 introduced Shader Model 2.0, which offered one of the necessary components to enable rendering of high-dynamic-range images: lighting precision was not limited to just 8-bits. Although 8-bits was the minimum in applications, programmers could choose up to a maximum of 24 bits for lighting precision. However, all calculations were still integer-based. One of the first graphics cards to support DirectX 9.0 natively was ATI's Radeon 9700, though the effect wasn't programmed into games for years afterwards. On August 23, 2003, Microsoft updated DirectX to DirectX 9.0b, which enabled the Pixel Shader 2.x (Extended) profile for ATI's Radeon X series and NVIDIA's GeForce FX series of graphics processing units.
On August 9, 2004, Microsoft updated DirectX once more to DirectX 9.0c. This also exposed the Shader Model 3.0 profile for high-level shader language (HLSL). Shader Model 3.0's lighting precision has a minimum of 32 bits as opposed to 2.0's 8-bit minimum. Also all lighting-precision calculations are now floating-point based. NVIDIA states that contrast ratios using Shader Model 3.0 can be as high as 65535:1 using 32-bit lighting precision. At first, HDRR was only possible on video cards capable of Shader-Model-3.0 effects, but software developers soon added compatibility for Shader Model 2.0. As a side note, when referred to as Shader Model 3.0 HDR, HDRR is really done by FP16 blending. FP16 blending is not part of Shader Model 3.0, but is supported mostly by cards also capable of Shader Model 3.0 (exceptions include the GeForce 6200 series). FP16 blending can be used as a faster way to render HDR in video games.