Rising Star ICI Joins Interactive Magic Family

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I-Magic Online Created As Result of Merger

San Francisco, CA -- Interactive Creations, Inc. (ICI), a rising star in the Internet Gaming Industry, has joined forces with Interactive Magic, a developer and publisher of Internet, Online and CD ROM games. The two companies will work together to create realtime computer games for play over the Internet and through other commercial services, such as AOL and CompuServe, Prodigy, and the Microsoft Network.

"We are extremely impressed with ICI's innovative Internet technology," said Interactive Magic's Chairman "Wild Bill" Stealey. "By combining our two companies, we will quickly become a dominant force in the Online/Internet Gaming Industry. ICI has developed proprietary software that will give us an immediate edge over the competition. By this time next year, we intend to have at least six realtime games being played directly over the Internet."

ICI is best known for WarBirds -- the award-winning flight simulation game that allows 200 players to fly against each other over the Internet. WarBirds was recently named "Online Game of the Year" by PC Games Magazine. ICI is also preparing to release Planetary Raiders, a much anticipated space simulation game that will allow thousands of players to compete via the Internet.

"We currently have people from every part of the world playing WarBirds directly over the Internet," said Robert Salinas, ICI's V.P. of Marketing and Sales. "In fact, last week we had players from Australia, Japan, Germany, and Brazil all flying in the same fighter squadron. Our breakthrough technology provides for smooth gameplay over the Internet with only a 9600 baud modem requirement."

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Interactive Magic, which is well established in the traditional computer retail market, has offices in Research Triangle Park, North Carolina, England, and Germany. Under the agreement, ICI will be renamed I-Magic Online and will become a wholly owned subsidiary of Interactive Magic. I-Magic Online will be headquartered from the current ICI facility in Grapevine, Texas.

Interactive Magic is based in Research Triangle Park, North Carolina and is dedicated to developing and publishing high quality multimedia games for the Internet, Online and CD ROM markets.

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