Blue Byte Software and SouthPeak Interactive Announce North American Distribution Agreement for "The Settlers III".

AUSTIN, Texas--(BUSINESS WIRE)--Oct. 28, 1998--Blue Byte Software and SouthPeak Interactive today announced an agreement for SouthPeak to distribute throughout North America the multi-player, real-time strategy game "The Settlers III," the third incarnation of the million-selling line of Settlers games.

SouthPeak will serve as the exclusive distributor in the United States and Canada for "The Settlers III," which will be available on PC CD-ROM in November and on DVD-ROM in early 1999.

"SouthPeak has a tremendous reputation with North American retailers," noted Mark Hall, vice-president, Business Development for Blue Byte Software. "Their high-level presence and distribution is exactly what we need to support our 'Settlers' franchise in the critical North American marketplace. Our partnership means that we have finally closed the gap between sales and distribution, allowing new customers to discover 'The Settlers III'; ultimately strengthening Blue Byte awareness within the USA."

"We're committed to offering consumers a fun, interactive experience," explained Armistead Sapp, president of SouthPeak Interactive. " 'The Settlers III' will further elevate SouthPeak's reputation by adding a riveting strategy game to our impressive, diverse lineup."

"The Settlers III" allows players to command a Roman, Egyptian or Asian tribe as it struggles from humble beginnings to build settlements, establish trade, colonize foreign lands and wage battles on the way to ruling the known world. "The Settlers III" will support massive Internet multi-player gaming on Blue Byte's own servers, as well as direct play over the Internet or a LAN. Further information can be found at the Official Settlers III site located at http://www.settlers3.com.

Aside from the English version, "The Settlers III" is currently being

translated into approximately 10 different languages, with more to be confirmed.

In just 12 months, SouthPeak Interactive has become a major distributor of entertainment software by placing product with all of the major retail software outlets in North America, including Babbage's, Circuit City, CompUSA, Electronics Boutique and Fry's Electronics. The company also has retail partnerships with some of the largest chains in the country, including Best Buy, Kmart, Sam's Club, Target, Toys 'R' Us and Wal-Mart. SouthPeak has established strategic alliances directly with these retailers and with leading national distributors such as GT Interactive, Merisel and Navarre.

About Blue Byte Software:

Founded in 1988, Blue Byte (http://www.bluebyte.com) has consistently re-affirmed its position as one of the world's leading independent developers and publishers of PC games software with award-winning titles such as "Jimmy Connors Pro Tennis Tour," "The Battle Isle Series," "The Settlers," "Extreme Assault" and "Incubation."

Blue Byte is synchronizing its international operations from offices in the USA, UK and Germany, with a development program that is both advancing the development of online and network gaming and broadening the audience for computer games. Taking advantage of the United States' more advanced Internet culture, Blue Byte has recently formed a partnership with their first US developer, Murder of Crows. Blue Byte is firmly on target in its goal to pioneer the popularization of computer gaming as a true global entertainment medium.

About SouthPeak Interactive:

Based in Cary, N.C., SouthPeak Interactive (http://www.southpeak.com) is a multimedia entertainment company that develops, publishes and distributes quality CD-ROM products. SouthPeak's line-up is a diverse mix of fun, compelling, and informative software titles that includes games, family entertainment, children's entertainment and reference. Many of SouthPeak's products have been created in association with major entertainment companies including The History Channel(r), Sony Signatures, and Warner Bros Interactive Entertainment.

SouthPeak also develops PC games utilizing Video Reality(r) technology which results in stunningly detailed environments where gamers are free to control where they want to go, when they want to go, and what they want to look at and interact with - on the way there.

SouthPeak is a trademark of SouthPeak Interactive LLC. Video Reality is a registered trademark of SAS Institute Inc., used under license. "The Settlers" is a registered trademark of Blue Byte Software Inc. All other brand and product names referenced are the trademarks or registered trademarks of their respective companies.

For More Information:

Samantha Flint, Blue Byte Software, [phone], [e-mail] or Bob Chase, SouthPeak Interactive, [phone], Ext. 4327, [e-mail]