Brilliant Digital Entertainment Receives $1.55 Million in Cash Related to Distribution Agreement With Packard Bell NEC.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--January 31, 2000

Brilliant Digital Entertainment, Inc. (AMEX:BDE), a pioneering Internet content and tools developer, announced today that it has received a cash payment of $1,550,000 in respect to certain royalties due Brilliant Digital pursuant to the terms of a 1997 software bundling and distribution agreement with Packard Bell NEC.

Last year NEC Corp. publicly announced plans to restructure its Packard Bell NEC unit and withdraw from the United States retail PC market, thereby negatively impacting its ability to achieve the minimum shipment of PC's which were to contain Brilliant Digital's software, as required by the agreement.

Kevin Bermeister, President of Brilliant Digital, commented, &uot;We are extremely pleased to have favorably resolved this situation, which will help to support our ongoing content and technology development activities. The cash infusion comes at a particularly opportune time as we are starting to see the benefits of the formation of a content distribution network on high-traffic Web sites such as Time Warner's Entertaindom (http://www.entertaindom.com) as well as through broadband networks such as Excite@home and Roadrunner.&uot;

About Brilliant Digital Entertainment

Brilliant Digital Entertainment is a pioneering entertainment content provider and technology developer for the converging Internet and television markets. The Company is focused on two principle market segments: (1) The development and distribution of 3-D, digitally animated interactive content, distinguished by its small file sizes/shorter download times and full-screen images, developed using Brilliant's proprietary software. (2) Live Internet and television auction broadcasts as well as real-time Internet and telephone bidding and e-commerce services, in conjunction with top auction houses, through its The Auction Channel subsidiary. More information on Brilliant Digital Entertainment may be found at http://www.multipathmovies.com and on The Auction Channel at http://www.auctionchannel.com.

Information about Forward Looking Statements

Statements in this news release that relate to Brilliant Digital Entertainment's projection of adoption of 3-D animation on the Internet 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 circumstances may differ materially due to a variety of factors set forth in Brilliant's most recently filed Form 10-KSB report and 10-QSB report and are available from Brilliant Digital Entertainment's Investor Relations department and may be obtained by calling or writing to our investor relations company, Jaffoni &Collins at 212-835-8500 or [e-mail].