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GT Interactive Also Obtains Rights to Sequel; Unreal Engine for Five Additional Games, UnrealEd and Level Sets

New York, NY, September 10, 1996 -- In an industry coup, GT Interactive Software Corp. (NASDAQ: GTIS) has obtained exclusive global publishing rights to Epic MegaGames Inc.'s Unreal, one of the most anticipated and sought-after 3D action games for 1997. GT Interactive plans to release Unreal, an Internet-adaptable multi-player PC game, during the first half of 1997.

Under the agreement, GT Interactive obtains exclusive rights to publish Unreal and a sequel for the PC, and an option for Sony Playstation, Sega Saturn and Nintendo 64 systems on a worldwide basis. In addition, GT Interactive obtains rights to Epic's UnrealEd, a proprietary 3D authoring tool for publishing associated game level sets. GT Interactive may also utilize the specially designed Unreal engine to create five additional premier software titles.

"Unreal is a hit-caliber title that breaks new ground in the 3D action category and will be a leader in our 1997 lineup" said Ron Chaimowitz, president and chief executive officer of GT Interactive. "We are excited to be working with the creative and technologically innovative artists at Epic to bring consumers the most advanced and entertaining software in the industry."

"We are pleased to bring our crowning jewel, Unreal to one of the industry's strongest publishers", said Mark Rein, vice president of Epic MegaGames Inc. "With its unsurpassed marketing and distribution strength, and success in publishing 3D games, we believe GT Interactive will garner even greater recognition for Unreal in the marketplace."

Designed for the Windows 95/NT platform and Intel Pentium processor-based computers, Unreal will take advantage of Intel's new MMX technology, providing 24-bit color, CD-quality audio and exhilarating visual effects -- all of which hasled industry experts to cite Unreal as having created a new genre of gaming. According to PC Gamer (July) magazine, "The name of the game is Unreal and it's absolutely appropriate. Every indication is that this game and the few others like it will be the true next generation of computer gaming."

Unreal puts one or multiple players via the Internet, in a highly detailed 3D alien world populated by two warring races. Optimized for high resolution play, Unreal's visuals set a new standard for realism -- water is transparent, flames randomly flicker, moving clouds cast shadows while dynamic lighting and music changes occur appropriate to the on-screen action. Hundreds of polygons and frames of animation comprise Unreal's eerie monsters, and cinematic audio effects, including blowing wind, flowing water, crackling fires and terrifying footsteps, enhance the game's one-of-a-kind experience.

UnrealEd, Epic's advanced 3D authoring tool, utilizes constructive solid geometry, a sophisticated yet easy-to-learn method of creating 3D environments and objects that allows consumers to create their own Unreal worlds.

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Epic MegaGames Inc. is a privately held company based in Rockville, Maryland with offices in the U.K. Established in 1991, Epic produces, markets and distributes cutting-edge PC games. Best known for Jill of the Jungle and Epic Pinball, the company has over 20 products in release. Epic distributes its products directly to end users using the shareware model.

Headquartered in NY, with offices in London, San Francisco, Seattle, Phoenix and Minneapolis, GT Interactive Software Corp. is a leading global publisher of interactive entertainment, edutainment and value-priced software marketed under the GT Interactive, Humongous Entertainment and WizardWorks brands, for IBM-compatible and Macintosh computers as well as 32- and 64-bit gaming systems. Among GT Interactive's best-selling titles are Duke Nukem 3D and Doom II. GT Interactive is publicly traded on the NASDAQ National Market System under the symbol GTIS.

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