Avatar Interactive Wins Microsoft Certification Training Contract.

SEATTLE--(BUSINESS WIRE)--July 14, 1999--

Avatar Interactive, a wholly-owned subsidiary of Interactive Objects (OTC BB:OBJX), announced today an agreement to provide instructor-led training on Microsoft technologies for the nation's leading provider of temporary manual labor to the light industrial and small business markets.

Under the terms of the contract, Avatar will provide instructor-led training on the Microsoft Windows NT and Windows 95 operating systems to corporate MIS Department employees. Avatar will hold training sessions at the labor corporation's national headquarters, allowing the training employees to focus on their specific business needs and to troubleshoot in a real-world environment.

Avatar Interactive recognizes the important role that knowledge, technical skill, and education play on a return of corporate investments. The Company's software training services and experienced technical staff deliver leading-edge training on Microsoft Technologies that benefit the IT workforce and create a rewarding learning environment for each student.

"The combination of our exceptional training services, successful software development, testing lab, and IT consulting division allows Avatar to offer our clients a full range of development services," said Kayleen Arafiles, President, Avatar Interactive. "We provide our clients with a complete set of skills and the expertise they need to create the optimal solutions they desire."

While enhancing the MIS team's Microsoft networking skills, Avatar's training will also help the labor corporation's employees prepare for the Microsoft Certified Systems Engineer (MCSE) examinations. Microsoft introduced its MCSE program in the early 1990s to provide employers with an objective measure of computer professionals' technical knowledge. Avatar's Microsoft Technologies Training Program prepares students for the MCSE exam certification while providing hands-on experience that allows students to understand all aspects of the product.

In addition to their new training contract, Avatar is pleased to announce the successful completion of a training project with SAFECO. A national property and casualty insurer with substantial life insurance operations and real estate investment, SAFECO also has commercial credit and asset management companies providing a broad range of financial services. Completion of this training contract included Visual Basic 6.0 advanced training on developer tools such as Active Server Pages (ASP), COM/DCOM, Visual InterDev and enterprise development using Visual Basic. Avatar provided training to employees from the Information Services Department.

"Finding technical expertise in this area is difficult," said Jack Gibson, Information Services, Commercial Lines Manager, SAFECO Insurance. "Avatar organized a fantastic training program using a top-rate instructor. The combination of instructor lecture and hands-on lab training provided a balance for learning that will assist our employees in their current and future job responsibilities."

About Interactive Objects, Inc.

Former Microsoft employees founded Interactive Objects in 1995 to develop object software for commercial Internet and intranet applications. Today, Interactive Objects continues to evolve and expand its offerings by leveraging revenue generating intellectual property and technical talent. Through its consulting subsidiary, Avatar Interactive, the Company offers a full range of development services including custom software solutions, Internet development, software training, and testing. The Company's Information Appliances division continues to develop and mature its research and development efforts for embedded systems.

Interactive Objects is headquartered at 217 Pine Street, 8th Floor, Seattle, WA 98101, USA. Interactive Objects is listed on the OTC.BB under the symbol "OBJX" and on the "Third Segment" of the Frankfurt and Berlin Stock Exchanges under the symbol "IOX" and German securities code WKN: 913011. The Company can be reached on the web at http://www.iobjects.com

Certain information included in this communication contains statements that are forward-looking, such as statements relating to the future anticipated direction of the high technology industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts. These forward statements are subject to a number of known and unknown risks and uncertainties that could cause actual operations or results to differ materially from those anticipated. These risks include, among others, risks associated with unproven sales of the Company's products, risks associated with the software development process and risks related to the transition to a new management team. Certain of these risks and other risks are described in the Company's Registration Statement on Form SB-2 filed with the Securities and Exchange Commission (SEC). The registration statement is available from the SEC's Web site at http://www.sec.gov