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Newly formed Analog Entertainment subsidiary will focus on development of interactive entertainment products for the Internet

Medford, OR, August 1, 1996 -- Trilobyte Inc., creators of the groundbreaking CD-ROM game The 7th Guest and its sequel, The 11th Hour, today announced the formation of Analog Entertainment, an independent online division of the company. Announced by Trilobyte co-founders Rob Landeros and Graeme Devine, the new company will be dedicated to the development of interactive entertainment products for the Internet and beyond.

"The Internet is an extremely significant, if not the, major platform for digital entertainment of the future, and obviously it is integral to the future success and direction of Trilobyte," said Landeros, CEO and creative director at Trilobyte. "At the same time, there is still a healthy market for interactive entertainment products that are better suited for the CD-ROM and DVD media. By forming a wholly owned subsidiary, we will be better able to focus both on our core titles business where we've had great success in the past -- and these new, emerging markets, where we hope to build our future."

With an initial focus on multi-player online action games, Analog Entertainment's first product, Assault!, is being readied for release this fall. A groundbreaking, real-time game of modern warfare, Assault! pits players against each other across the Internet. The game includes "on the fly" 3-D graphics, fast action and the excitement of competing against real opponents throughout the world.

Devine, who will serve as president/CEO of Analog Entertainment and lead the company's online development activities, said, "I am very excited to be able to focus 100% of my energies on spearheading our entry into the Internet entertainment industry. Just as Trilobyte pushed the CD-ROM envelope with The 7th Guest and The 11th Hour, my goal is to create groundbreaking entertainment experiences that realize the full potential of this important new medium. Assault! is just the first in a series of games from Trilobyte that will be joined together to create an integrated gaming universe."

Landeros added that he believes Assault! has the potential to become one of the most popular multi-player games on the Internet. "We see tremendous potential in multi-player gaming, which is probably the fastest growing sector in the interactive entertainment industry, and we have developed an exciting business model for the venture," he added.

The formation of Analog Entertainment to focus on online development represents continued growth and diversification for Trilobyte, which last year announced the formation of Trilobyte Productions, its film and television production arm. Launched with a mandate to develop feature films and television programming based on its award-winning product line, Trilobyte Prods. recently signed a development agreement with producer Larry Kasanoff (Mortal Kombat, Total Recall, Terminator 2) to create The 7th Guest: The Movie, based on the company's best-selling title.

In addition, Trilobyte Prods. will be releasing Tender Loving Care starring John Hurt, during the first quarter of 1997. Filming for TLC, the industry's first truly integrated feature film and interactive CD-ROM product, was recently completed on location in Southern Oregon.

Also upcoming for Trilobyte is the animated adventure game Clandestiny, set for release this fall. Featuring nearly 40 minutes of motion-picture quality animation, Clandestiny combines an original story by renowned children's author Jahnna N. Malcolm with a healthy dose of Scottish lore and legend and a mind-bending array of one-of-a-kind puzzles to create a unique multimedia entertainment experience that stretches the limits of interactive imagination.

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Creators of the groundbreaking CD-ROM games The 7th Guest and The 11th Hour: The Sequel to the 7th Guest, Medford, Oregon-based Trilobyte Inc. is a leading producer and publisher of interactive entertainment products. Founded in 1991 with a mission to broaden the interactive entertainment software market by creating and delivering original, high-quality products with broad consumer appeal, Trilobyte identified a strong market niche for advanced entertainment titles that combine the interactivity of a CD-ROM with a sophisticated, compelling storyline.

Trilobyte's debut release, The 7th Guest, ranks as one of the most successful CD-ROM games in the history of the industry, with more than 1.5 million copies sold worldwide in PC and Macintosh formats since 1993. The 11th Hour: The Sequel to the 7th Guest, the company's highly anticipated follow-up effort, set a new industry record when it was released in late 1995, shipping more than 500,000 units worldwide, one of the largest preorders ever for a CD-ROM game.

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