Alliance Partners with Sega of America to Produce New Animated CGI TV Series "BUG!".

TORONTO AND LOS ANGELES, CALIFORNIA--(BUSINESS WIRE)--Feb. 26, 1998--Alliance Communicati(TSE:AAC.A) (ME:AAC.A) (TSE:AAC.B) (ME:AAC.B) (NASDAQ:ALLIF) Alliance Communications Corporation and Sega of America formed a partnership to produce 13 half-hour episodes of BUG!, the new computer generated television series, it was announced by Jeff Rayman, Chairman of Alliance Multimedia.

Based on the popular characters from the Sega Saturn video game, BUG! is a collection of three cartoon shorts per episode starring Kibosh and Kerfuffle, and the Super Videots and of course Bug himself. Along with a cast of "wild and crazy" friends, these slapstick shorts are stand-alone character driven comedic stories.

Bug! marks Alliance Communications' third computer-generated animation series after the critically acclaimed ReBoot(R), the first-ever 100 percent CGI television series, and ratings winner BEAST WARS(TM) TRANSFORMERS(TM).

Sega of America is the arm of Tokyo, Japan-based Enterprises Ltd. responsible for the development, marketing and distribution of Sega videogame systems and videogames in the Americas. Sega Enterprises Ltd. is a nearly $3 billion company recognized as the industry leader in interactive digital entertainment media, and is the only company that offers interactive entertainment experiences both inside and outside the home. Sega of America's world wide web site is located at (http://www.sega.com).

Alliance Communications Corporation is a global producer, distributor and broadcaster of filmed entertainment. Headquartered in Toronto with offices in Montreal, Vancouver, London, Los Angeles, Paris and Shannon, Alliance trades in Toronto and Montreal under the symbol AAC and on NASDAQ under ALLIF.

CONTACT: Alliance Communications Corporation

Rose Mangone, Toronto, 416/ 967-1174

or

Dennis Davidson & Associates

Steve Belgard, LA, 213/ 954-5858

or

Dennis Davidson & Associates

David Gibbs, LA, 213/ 954-5858