Applied Technology augments investments in interactive technologies with Headbone Interactive.

LEXINGTON, Mass.--(BUSINESS WIRE)--Aug. 7, 1996--Private venture capital firm Applied Technology has provided first-round financing for Headbone Interactive, a publisher of original children's CD-ROM and Internet programming. Bay Partners and J.F Shea Co. Inc. invested in Headbone Interactive alongside Applied Technology.

According to Tom Grant, a managing general partner at Applied Technology, "Headbone has done a good job developing its character based series. With the release of five titles this year and vastly improved distribution agreements both domestically and internationally, the company will grow significantly. It's characters and development approach make these series easily adaptable to on-line as well as more traditional media. We look forward to helping them exploit these delivery platforms."

Headbone Interactive was formed in 1993 with a goal of becoming the premier producer of original, off-beat programs for families. The multimedia CDs feature a collection of colorful characters designed to both entertain and teach math and science through discovery, storytelling and problem solving. In 1995, the company released three CD-ROM titles. By the end of 1996, it will have released five additional titles, creating three distinct branded product lines: the Gigglebone Series for children ages four to eight; the Elroy Series for ages seven and up; and the Auggie Series which is aimed at pre-teen girls and will release its initial title in September 1996. In addition to a relationship with Broderbund, which distributes its products in the United States and Canada, the company's products are also distributed in Germany, the United Kingdom, Japan, Scandinavia, Holland and Korea.

Management Team

Headbone's president and founder, Susan Lammers was director of multimedia at Microsoft and director of on-line editorial programs at Corbis Corp., a leading multimedia and digitial content company owned by Bill Gates. Walter Euyang, founder and chief operating officer, was vice president at ABN AMRO Bank for nine years. He also worked in the emerging high-technology and internationl finance sections at Bank of America. Scott Hudson, creative director, was senior designer at Microsoft and lead designer at Corbis Corp.

Applied Technology operates with a team of three managing partners -- Frederick Bamber, David Boucher and Thomas Grant -- and two special general partners, Eugene Flath and Professor Nicholas Negroponte. The company maintains offices in Lexington, Mass.; Austin, Texas; and Menlo Park, Calif.

CONTACT: Fred Bamber

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Imelda Kenny

Applied Technology

617/862-8622

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