3DO Delivers First Entertainment Product for the Internet; Meridian 59 Is World's First Internet 3-D Graphical MUD Game Netscape Navigator Bundled Free.

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Sept. 17, 1996--The 3DO Company today announced worldwide availablity of its first entertainment product for the Internet, Meridian(TM)59. The company also entered into a bundling agreement with Netscape Communications Corporation and will be offering Netscape Navigator(TM) Personal Edition client software free of charge with Meridian 59. Meridian, a fantasy role-playing game set in medieval times, is the world's first 3-D graphical multi-user dimension (MUD) game designed specifically for the Internet to be widely distributed through the retail channel. Meridian 59 is expected to be on shelves in some 9,000 store fronts across the United States and Canada in early October. The product will also be available in Europe and Asia and through 3DO Direct Sales.

The 3DO Company today unveiled a pricing scheme for Meridian 59, which includes a retail product with an estimated street price of $39.95 and an ongoing monthly subscription fee of $9.95 for unlimited play. The retail product comes with Netscape Navigator 2.0 Personal Edition client software, 30 days of free game time, and a special edition map of the Meridian world. The game, which surpassed 25,000 player accounts in more than 65 countries during its beta trial, is the first product to ship under 3DO's newly developed Internet operation. The company is currently creating several entertainment products for the Internet space that are expected to become available in 1997.

"Entertainment will be the driver behind the growth and acceptance of the Internet as a mass market consumer platform," said Trip Hawkins, chairman and CEO, The 3DO Company. "Meridian 59 bundled with Netscape's client software offers a glimpse of the new genre of games being created for the Internet where the best of today's technology and game play is combined with the community of the Internet."

"As the Internet moves into the consumer realm, we are seeing a tremendous interest from our customers for solid entertainment content," said Mike Homer, senior vice president of marketing, Netscape Communications Corporation. "Today's announcement combines the world's most popular client software with the Internet's leading-edge 3-D game, ushering in a new era of entertainment on the Internet."

In conjunction with the Meridian launch, 3DO has embarked on an aggressive on-line and print advertising campaign. Meridian 59 banners will be featured on popular Web sites such as Yahoo, Lycos, and Infoseek, and game sites including Happy Puppy and GameSpot, which are expected to attract more than one million impressions per month. Advertising will also appear in top gaming and Internet magazines worldwide. In addition, Meridian 59 will be featured on Netscape's highly-trafficked Internet sites.

Meridian 59 players enter a rich and complex medieval setting populated with thousands of players from around the world engaged in adventure, exploration, and social interaction. Characters can act with honor, betray friends, or ally with one another. Evil actions, such as killing another player, have long-term repercussions that are visible to all players in the game. Current players spend an average of three hours a day in the world of Meridian, with the maximum continuous time logged by a single player at almost 26 hours. Users have also banded together with other players on-line to form over 60 guilds for a variety of purposes including protecting new players and acting as bank depositories for player possessions. More than 20 weddings have taken place with a few divorces and even one reconciliation, all on-line. In addition, players have established over 35 Meridian-specific Web sites.

Configuration Requirements

3DO's Meridian 59 requires the following minimum configuration: -0-

-- 486/66 Mhz or higher processor machine

-- 8 MB RAM

-- 35 MB hard disk space available

-- 2X CD-ROM drive

-- SVGA monitor

-- 14.4 bps modem

-- SLIP/PPP Internet connection

-- Microsoft Windows 95/Windows NT -0-

Meridian 59 carries a "Teen" rating. Additional product information is available at www.3do.com/meridian/ and through 3DO Direct Sales at 800/336-3506.

Except for the historical information contained herein, the matters discussed in this release are forward looking statements that involve risks and uncertainties. Potential risks and uncertainties include, without limitation, market demand and acceptance for the company's current and future products, the company's ability to develop and ship future products, and the consequences of competitive factors in the marketplace. Further information on potential factors which could affect the company's financial results are included in the company's filings with the Securities and Exchange Commission, including the company's Report on Form 10-K for the fiscal year ended March 31, 1996 and the company's Report on Form 10-Q for the fiscal quarter ended June 30, 1996.

The 3DO Company (NASDAQ: THDO), headquartered in Redwood City, Calif., designs, licenses and distributes advanced interactive technology and software titles for the mass market. With offices in North America and Europe, the company licenses technologies and creates entertainment software for the 32-bit and 64-bit video game platform, the personal computer market and the Internet. -0-

Note to Editors: 3DO, the 3DO logos, and Meridian 59 are trademarks and/or registered trademarks of The 3DO Company. Netscape, Netscape Communications, and Netscape Navigator are trademarks of Netscape Communications Corporation. All other product names are trademarks and/or registered trademarks of their respective owners.

CONTACT: The 3DO Company

Diane Hunt, 415/261-3214

Tuesday Uhland, 415/261-3142