First video is showing yet experimental technology – new cloth solver and real-time fracturing.
Wooly character contains 840 000 particles simulated as 100 000 invidual strands of fur and is running on new solver that is currently under active research.
Real-time fracturing will be nice addition to the APEX Destruction module, which, currently, is utilizing only pre-fractured meshes. Fracturing happening in real-time, accordingly to impact force and point of damage application will certanly make destruction look more natural and immersive.
Update: more detailed videos of new fracturing engine.
Update #2: fur simulation technology video
Second video is showcasing production technology: APEX Turbulence, APEX Destruction and APEX Clothing modules integrated in UE3.
APEX Destruction was demonstrated in a form of good old Art Gallery scene, used at previous GDC as well.