3DO Enters Into Agreement to Acquire Archetype Interactive; Delivers First Component In Internet Strategy.

REDWOOD CITY, Calif.--(BUSINESS WIRE)--May 13, 1996--Marking its entree into the Internet area, The 3DO Company (NASDAQ: THDO) today announced that it has entered into an agreement to acquire the Archetype Interactive Corp., developers of the first 3-D graphical multiuser dimension (MUD) game over the Internet. The acquisition, representing the first component of 3DO's Internet strategy, will accelerate the company's time to market an Internet product offering and give millions of users the ability to experience true interactive gaming in a realistic graphical environment.

Under the letter of agreement signed today, Archetype will become part of 3DO's newly created Internet division, which boasts expertise from the company's architecture, systems software and content creation areas. Archetype's product, Meridian 59, reveals a dynamic 3-D visual environment where thousands of users will be able to play simultaneously across the Internet. Already, more than 10,000 users across the globe have played an early version of the game. A final version with expanded capabilities and game play is planned to be available through the retail channel in the fall. This is expected to be followed in the first half of 1997 by new Internet products currently being developed at 3DO.

"The Internet is the first medium ever to provide a unique connectivity between computing resources and people across the globe, ushering in a new era of `social computing'," said Trip Hawkins, chairman and CEO, The 3DO Company. "Today's announcement demonstrates 3DO's commitment to be a leader in this new era of computing by delivering truly engaging entertainment, and gives users a hint of products to expect in the coming year."

"We represent the next generation of gaming where the compelling graphics of CD-ROM games and connectivity of the Internet meet," said Steve Sellers, co-founder and executive producer, the Archetype Interactive Corp. "Meridian 59 is a revolutionary title that will propel gamers into an entirely new world and way of entertainment."

Archetype was started in 1995 by two sets of brothers and is run through four remote locations across the country. Mike Sellers, creative director, works out of Sherwood, Ore. and his brother Steve out of Berkeley, Calif. Andrew and Chris Kirmse, the company's chief technology officers, operate out of Vienna and Blacksburg, Va. respectively. The company has ten employees focused on engineering, programming, art design and marketing.

Meridian 59

Unlike on-line games available today, Meridian 59 was created from the ground up specifically for the Internet. Players enter a medieval-like setting where they create their own character for the game from thousands of different attributes. One could be a strong warrior from another era where key skills are the ability to wield a weapon and move quickly. Players traverse different worlds -- such as the metropolitan Barloque or the pastoral village of Marion -- interacting with other characters. Players can kill monsters, solve puzzles, seek hidden treasure, barter precious commodities, gain personal skills and chat with other characters. Skills and power are obtained throughout one's journey. Users can also band together with other characters on-line to form guilds for interaction on common activities. Already, more than 15 guilds have been created, many of which have their own Web sites.

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. If one faces an untimely death, the Underworld presents its own microcosm of challenges and obstacles to overcome. The world continuously evolves based on players' choices and activities, creating a different world to be encountered every time players log on.

Meridian 59 will be demonstrated at private meetings at the E3 show in Los Angeles, May 16-18. The product requires a minimum configuration of an IBM-PC compatible machine with a 486-DX66 processor, 8 Mb of RAM, SVGA monitor, 14.4 bps modem, SLIP/PPP Internet connection and Microsoft Windows 95 or Microsoft Windows NT.

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-Q for the quarter ended December 31, 1995, the company's Report on Form 10-K for the fiscal year ended March 31, 1995 and the company's report on Form 10-K for the fiscal year ended March 31, 1996, which the company anticipates will be filed with the SEC on or before June 30, 1996.

The 3DO Company, headquartered in Redwood City, Calif., designs, integrates and sells 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 32-bit and 64-bit video game platforms, the personal computer market and the Internet. Additional company information is available on the World Wide Web at www.3do.com and on America Online (keyword: 3DO). Product information on Meridian 59 is available at www.bestworlds.com. -0-

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