GT INTERACTIVE STRIKES GLOBAL PUBLISHING AGREEMENT WITH NEW SOFTWARE DEVELOPER, 'INFINITE MACHINE'

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Company Headed by Former LucasArts 'Jedi Knight' Designers to Create New 3D Action PC Game

New York, January 6, 1999 -- GT Interactive Software Corp. (Nasdaq: GTIS) has entered into a publishing agreement with Infinite Machine, a new CA-based software development company established by former LucasArts Jedi Knight game designer, Justin Chin and programmer Che-Yuan Wang. GT Interactive plans to publish Infinite Machine's first title, a 3D action game for the PC, which is scheduled for market introduction in the year 2000. Under the agreement, GT Interactive obtains rights to console versions of the title as well as sequels, add-on and level packs.

"We are pleased to publish the first title from Infinite Machine, a new group of creative developers, each of whom have designed games based on one of the strongest entertainment franchises in the world," said Ron Chaimowitz, chairman and chief executive officer for GT Interactive. "With experience designing such successful, high profile games as Jedi Knight, Dark Forces and Descent, we are confident Infinite Machine will develop a compelling title, further strengthening our lineup for the future."

"It's great starting out the New Year announcing our first publishing deal," said Chin, president and CEO for Infinite Machine. "GT's marketing and distribution power will certainly give our game a solid foundation for success. We're very excited about our talented team and the development of our first title."

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Headquartered in NY, with 1997 revenues of $531 million, GT Interactive Software Corp. is a leading global cross-media entertainment company which develops, markets, merchandises and distributes game software; creates e-commerce, electronic storefront leasing, advertising, content licensing and multiplayer gaming opportunities on the Internet; and produces television programs. Via its OneZero Media subsidiary, GT operates a specialized entertainment portal, www.getwild.com, which acts as the Entertainment Zone on AltaVista; and produces the nationally syndicated television program, The Wild Wild Web. The company's software labels include GT Interactive, Humongous Entertainment, Cavedog Entertainment, SingleTrac, WizardWorks, CompuWorks, MacSoft and Slash.

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