Interplay and Monolith announce exclusive distribution agreement

IRVINE, California, June 1, 1999 - Interplay Entertainment Corp. (NASDAQ:IPLY) and Monolith Productions announced today an exclusive agreement for Interplay to distribute three of Monolith's highly-anticipated role-playing games (RPGs) in North America. The three titles, Rage of Mages II:Necromancer™, Septerra Core™ and Odium™ will all ship for the PC this Fall.
"Monolith's successful 1998 product launches greatly increased both our brand awareness and our overall market value," commented Monolith CEO, Jason Hall. "Moving into the future, our newly formed alliance with Interplay will allow Monolith to more easily balance the company's resources by focusing on development of our core internal products and advanced engine technology while at the same time continuing our publishing efforts. Interplay's experience with strong RPG products complements our Fall line-up perfectly, and we look forward to successful launches."

"Monolith has a solid reputation of creating high quality titles and the RPG genre is an area Interplay is certainly familiar with and has proven itself as a first rate distributor," said Kim Motika, Interplay's vice president of strategic development. "We are really looking forward to a long, mutually-beneficial relationship with Monolith."

Septerra Core, developed by the Chicago-based software company, Valkyrie Studios, is a futuristic fable set on a world of seven continents that float, one above the other, around a central, living computer core. In Rage of Mages II, the sequel to the innovative, Russian-developed fantasy RPG/strategy title, players are introduced to new role-playing elements such as non-linear missions and more complex interactions with non-player characters (NPCs). The third title to be distributed by Interplay is Odium, which draws upon the horrific and repulsive to create a conspiracy laden role-playing game featuring hand-painted backgrounds, impressive 3D character models, and a unique, turn-based combat system.

Monolith Productions, Inc., based in Kirkland, WA, is a game development and publishing company focused on combining uncompromising gaming content with the ultimate in high-end gaming technology. Founded by six game developers in 1995, Monolith's passion for programming has resulted in the creation of the LithTech 3D Engine. This proprietary software is used in the creation of Monolith products, such as the well-received Shogo: Mobile Armor Division, and is available for license to the wider development community. For the latest news and information on Monolith and its products visit their web site at http://www.lith.com.

Interplay Entertainment Corp. is a leading developer, publisher and distributor of interactive entertainment software for both core gamers and the mass market. Interplay currently balances its development efforts by publishing for personal computers and current generation video game consoles. Interplay releases products through Interplay, Shiny Entertainment, Tantrum, Black Isle Studios, Interplay Sports, 14° East, its distribution partners and its wholly owned subsidiary Interplay OEM, Inc. More comprehensive information on Interplay and its products is available through its worldwide web site at http://www.interplay.com. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This release may contain forward-looking statements involving risks and uncertainties that may cause actual future events or results to differ materially and adversely from those described in the forward-looking statements. Important factors that may cause such a difference for Interplay include, but are not limited to, risks of delays in development and introduction of new products, dependence on new product introductions which achieve significant market acceptance and the uncertainties of consumer preferences, dependence on third party software developers for a significant portion of new products, risks of rapid technological change and platform change, intense competition, seasonality, risks of product defects, dependence upon licenses from third parties, risks associated with future capital requirements, dependence upon third party distribution, dependence upon key personnel and risks associated with international business, intellectual property disputes and other factors discussed in the Company's filings from time to time with the Securities Exchange Commission, including but not limited the Company's annual report on Form 10K for the year ended December 31, 1998. Interplay disclaims any obligation to revise or update any forward-looking statement that may be made from time to time by it or on its behalf.

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