Altnet Tests Show File-Sharers Using Secure Content; Content Owners Benefit From Exposure to Millions of KaZaA Users via Altnet Paid Search Listings.

Business Editors & High-Tech Writers

File-sharers are choosing to download media files secured with digital rights management technology, Altnet reported today in results from initial tests of its TopSearch sponsored-link engine. In a little over a month, more than two million secure media files have been downloaded and sampled by users of KaZaA, the most popular file-sharing application.

TopSearch results have been available to KaZaA users since May 22, 2002.

"These initial results show that our TopSearch product can offer a viable way for content owners to tap into the promotional and commercial power of peer-to-peer while still keeping control of their content," Altnet CEO Kevin Bermeister said. "An older video game title that has recently been unavailable on store shelves is now generating $2,000 a week in direct sales revenue. As more secure content becomes available, and as long as it remains convenient and easy-to-use, we anticipate user-acceptance of and payments for digital content continuing to increase."

Content owners can provide secure media files directly to end-users by purchasing search placements in the central index of Altnet's TopSearch sponsored-link engine. The index interfaces with the KaZaA Media Desktop application and matches KaZaA users' search requests to search terms for the sponsored files.

The most popular media files currently being delivered via Altnet are Infogrames' "Robot Arena" video game and music from emerging rap duo MaddWest, which is on the EMI-distributed 2KSounds label.

The 40-megabyte "Robot Arena" game is seeing an average of 15,000 downloads each week. A growing number of users are also opting to pay for the full game after the "free play" period has expired.

Three promotional songs from MaddWest are being downloaded as many as 50,000 times every day.

"The future of the recording industry rests upon its ability to integrate new technologies in the promotion, marketing, and eventually the distribution of recorded music," said Jorge Hernandez, senior vice president of A&R and general manager of 2KSounds. "Altnet's TopSearch has proven to be an exciting, cutting-edge tool we are successfully utilizing to effectively and securely introduce 2KSounds' artists to the marketplace."

TopSearch results are delivered to the KaZaA user-interface when a user's search request matches a keyword in the TopSearch index. The paid listings are given preferential placement as the first three returned results. They are also sprinkled throughout the rest of the returned results alongside unpaid listings. Secure files are represented in a gold font so users can easily identify them.

Altnet uses a next-generation, secure peer-to-peer infrastructure and widely available digital rights management technologies from Microsoft and Trymedia to protect the owner's content. Content owners establish a direct-licensing relationship with end-users and control all usage rules and pricing associated with their files. They can currently charge users for their content, provided they have an e-commerce infrastructure in place.

In the next few weeks, Altnet will introduce and test a micro-payment system that will enable content owners to charge for individual media files. The content owners will determine prices, merchant accounts and the card types they will accept for their content.

"Secure file-sharing presents a huge opportunity for content owners to get in front of a ready-made, content-hungry, worldwide audience. P2P technology used by KaZaA and others is simple, efficient and obviously favored by end-users," Altnet's Bermeister said. "It's unlikely that these users will be lured to other subscription services since they are already accustomed to the P2P environment. With KaZaA having a total of 88 million downloads and growing at the rate of 2.5 million downloads per week, peer-to-peer is where the potential customers are."

About Altnet

Altnet is the first peer-to-peer network created to give consumers easy access to secure content that originates from content owners. The company's TopSearch product integrates with applications and web sites via the Internet allowing content owners to purchase keyword search terms that direct users to their secure content. Altnet also provides cost-effective bandwidth functions for enterprise customers and content owners. Altnet is a subsidiary of Brilliant Digital Entertainment (AMEX: BDE).

About Brilliant Digital Entertainment

Brilliant Digital Entertainment, Inc. (AMEX: BDE) is a developer of 3D rich media advertising and content creation technologies for the Internet. It sells its b3d Studio content creation and authoring toolset to enable the creation and delivery of interactive, streaming, real-time 3D graphics over the Internet, and licenses its ad serving technology to the content and advertising communities. The b3d Studio toolset is targeted for use by studios, production houses, web content suppliers and advertising agencies to produce entertainment, advertising and music content for consumers distributed over the Internet. Brilliant also licenses its Brilliant Banner ad serving technology to the web-based advertising industry. Find out more at www.brilliantdigital.com.

For further information, please contact Robin Gore at 818/615-1500 X528 or [e-mail].

Information About Forward Looking Statements

Statements in this news release that relate to (i) the number of media files downloaded and the performance of peer-to-peer networks, (ii) the performance of video game companies whose games are downloaded on Altnet, (iii) the increase in user acceptance of and payment for digital content, and (iv) other projections, events or performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Actual results may differ materially due to a variety of factors, including (a) whether available digital rights management software can adequately protect content, (b) the availability of high quality content for free on peer-to-peer networks, (c) consumers' willingness to pay for content on peer-to-peer networks, and (d) those factors set forth in Brilliant's most recently filed Form 10-KSB and Form 10-QSB reports which are available from Brilliant Digital Entertainment's Investor Relations department and may be obtained by calling or writing to Robin Gore, at 818-615-1500 X528 or [e-mail].