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Contact: Halle Eavelyn, HyperBole Studios
Voice: (425)373-5230, Fax: (425)373-9370

Carrie Morris, AtomFilms
Voice: (206) 264-2735, ext. 109, Fax: (206) 264-2742

For Immediate Release

HYPERBOLE STUDIOS SIGNS DEAL WITH ATOMFILMS; RETURNS TO ONLINE ENTERTAINMENT BIZ

(October 10, 2000 -Seattle) HyperBole Studios, award-winning developers of the best-selling The X-Files Game and the patented VirtualCinema(r) system, announced today that they have signed a deal with AtomFilms to license HyperBole's original animated comedy series, Dog Buddha, Elvis.

Dog, Buddha, Elvis, which follows the adventures of a rudderless 20-something named Ben and the three dueling aspects of his personality, was created for the web using 3D Studio Max and Flash. AtomFilms has exclusively licensed the current series for their extensive network and optioned future episodes, in what looks to be a promising relationship between AtomFilms and HyperBole.

"Hyperbole delivers unique short-form content ideally suited to appeal to our online viewers," said Cory Wynne, Senior Content Manager, AtomFilms. "The design and style are masterful and the writing is very strong. All are key ingredients when we look for content to distribute on our site."

In addition to Dog, Buddha, Elvis, HyperBole plans to offer original series on their own web site, as well as creating online content for other internet distributors. The company will focus first on Flash and other animation projects, and then plans to expand to interactive VirtualCinema films via the web. Their offerings can be seen at http://www.hyperbole.com/shows.

HyperBole Studios, a creator of world-class interactive entertainment, was founded in 1990 by Greg Roach, one of the country's leading interactive designers. The company's roots are in short form entertainment, interactive movies, stories and games. Its interactive film and game engine, VirtualCinema(r), and award-winning products have consistently broken new ground in the interactive entertainment market. The company recently began licensing its VirtualCinema technology. http://www.virtualcinema.com

AtomFilms is a leading next-generation entertainment company focused on creating a mass market for short films, animations and digital media. A loyal supporter of independent filmmakers and animators, AtomFilms has built a platform for its artists looking for worldwide distribution. AtomFilms markets and distributes high-quality short form entertainment to audience's worldwide, with significant presence on major Internet sites, broadband services, television, airlines and home entertainment companies. AtomFilms was recently selected as the "Forbes Magazine Favorite" short film Web site.

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