7th Level and Morgan Creek to develop "ACE VENTURA"; CD-ROMS action adventure and educational titles to be developed.

DALLAS--(BUSINESS WIRE)--Sept. 13, 1995--George Grayson, president and CEO of 7th Level, Inc. (NASDAQ: SEVL) and Hollywood's James G. Robinson, chairman and CEO of Morgan Creek, have announced a joint venture to develop multiple interactive products based on an animated version of Ace Ventura, the character made popular by actor Jim Carrey.

The first title, an action adventure game on CD-ROM for Windows 95 and the Macintosh, is set for an August 1996 release. Following the release of the game the venture intends to market an educational title that employs the animated Ace Ventura character. In addition, the joint venture has rights for all CD-ROM platforms and is planning to develop for next generation game consoles. The agreement with Morgan Creek also contemplates developing additional titles based on Ace Ventura.

Jim Carrey launched his career in the smash hit film, "Ace Ventura: Pet Detective" and is fast becoming an icon of American pop culture. Nineteen ninety-five marks the beginning of the next wave of Ace-mania. In what is expected to be one of the largest movie releases in history, Morgan Creek will bring Ace Ventura back to the big screen on November 10th in "Ace Ventura: When Nature Calls." The movie will open on 4,000 screens across North America. Then, the animated version of Ace Ventura will be introduced on CBS in a Christmas special this year followed by a Saturday morning TV series in January 1996.

"One of the things that excites us the most at 7th Level is the way Morgan Creek has captured the essence of Jim Carrey in the animated Ace character," said Bob Ezrin, co-chairman of 7th Level. "We are also very enthusiastic about Morgan Creek as a partner. It is an exceptional company with one of the best track records in Hollywood, the highest of standards and an incredible work ethic. We look forward to a long and fruitful association with them."

"We believe the Ace Ventura CD-ROMs will be very popular," said George Grayson. "These new titles will increase the strength of our existing product line, as well as demonstrate Hollywood's acceptance of 7th Level's proprietary computer technology as a viable avenue for entertainment products."

"The innovation and ingenuity found at 7th Level made the company a perfect choice to create a witty and entertaining CD-ROM based on the Ace Ventura character," said James G. Robinson. "7th Level is more than an interactive company. They understand the importance of characters and the stories that bring them to life."

"We believe that the management team at 7th Level is one of the best in the industry, and we are very excited about our new venture with them. They are a well capitalized company, with great technical and creative expertise and are perfectly positioned to market our Ace Ventura character in this new technological world," said Gary Barber, vice chairman and COO of Morgan Creek.

7th Level has developed a technology and production process which enables the creation of animated action games that can exceed the visual quality of television and gameplay of video game consoles. This proprietary technology has been used to create all of the company's award- winning interactive CD-ROM titles.

7th Level will distribute the products produced by the joint venture with Morgan Creek. Revenues and expenses will generally be shared equally by the venture. 7th Level also will fund the costs of development of the first two titles, but will be entitled to recover such costs out of sales proceeds. The agreement outlining the terms of the joint venture grants Morgan Creek certain warrants to purchase 7th Level common stock. 275,000 warrants, based on box office revenues of the feature film "Ace Ventura: When Nature Calls," have been granted at various price levels.

7th Level has formed three other joint ventures including a recent agreement to co-produce a CD-ROM math adventure with E.E.N. Communications. In June, 7th Level announced it is teaming with Disney Interactive to release an arcade game series based on "The Lion King" characters Pumbaa & Timon, due out in November, and last year the company announced QD7, a Hollywood joint venture with Quincy Jones-David Salzman Entertainment to produce an interactive music anthology CD-ROM to be released in 1996.

7th Level, Inc. blends Hollywood creative artistry, proprietary production techniques and world-class animators and producers to deliver state-of-the-art multimedia products. Battle Beast(TM), the ultimate fight game, is 7th Level's latest innovative release. 7th Level's other award-winning titles include Monty Python's Complete Waste of Time(TM), which is scheduled to be released this fall for the Macintosh, TuneLand(TM) starring Howie Mandel and Take Your Best Shot(TM). Coming this fall are The Great Word Adventure(TM) starring Howie Mandel and Arcade America(TM).

Morgan Creek Interactive, Inc. is a developer, publisher and licensor of interactive family entertainment software. The company is the worldwide distributor of its entertainment, edutainment and educational products. Morgan Creek is the largest privately held independent production company in Hollywood today. Having produced such highly successful films as "Robin Hood: Prince of Thieves," "Ace Ventura: Pet Detective," the "Young Guns" series, the "Major League" series, and many other notable films, Morgan Creek has one of the most successful track records in the industry. Morgan Creek's new line-up is highlighted by "Ace Ventura: When Nature Calls," one of the most highly anticipated films of the year; the Sandra Bullock, Denis Leary starrer "Two if by Sea," the Tom Arnold, Rick Moranis starrer "Big Bully" and the Sharon Stone starrer "Diabolique."

Morgan Creek is a diversified entertainment company which encompasses Morgan Creek Productions, Inc. one of the most successful and respected production companies; Morgan Creek International, its foreign distribution entity which distributes all Morgan Creek product internationally; Morgan Creek Music Group, a music publishing and soundtrack company which has three platinum soundtracks to its credit and a strong publishing catalogue; and an exhibition company which holds a significant interest in First International Theaters which operates over 80 screens in the Midwest. All of Morgan Creek films are distributed through Warner Brothers in the United States and Canada.

Visit 7th Level on the Internet at http:/www.7thlevel.com or on AOL, CompuServe and MSN at SEVENTH.

For more information regarding 7th Level, Inc. and its products, please contact Mary Crisp at 7th Level, Inc., 214/498-8184, Fax [phone]; or Jenny Roelle at Bender, Goldman & Helper, 310/473-4147, Fax [phone], Internet [e-mail]. -0- NOTE: All trademarks and registered trademarks are properties of their

respective owners.

CONTACT: 7th Level Inc.

Computer, Gaming, Multimedia: Mary Crisp, 214/498-8184;

or

Morgan Creek Productions Inc.

Linda Goldenberg, 818/954-5196;

or

Bender, Goldman & Helper

Consumer, Business, Broadcast, Newspaper: Jenny Roelle,

310/473-4147 or [e-mail].