Byron Preiss Multimedia reports second quarter results.

NEW YORK--(BUSINESS-WIRE)--August 10, 1995--(NASDAQ Symbol: CDRM)-Byron Preiss Multimedia Co. Inc. today reported net income of $195,691 or $.05 per share for the second quarter ended June 30, 1995 as compared to net loss of $418,769 or ($.15) per share for the prior comparable period.

Revenues for the second quarter ended June 30, 1995 amounted to $1,645,996 as compared to no revenues for the second quarter of 1994. For the six months ended June 30, 1995 revenues amounted to $1,910,028 as compared to no revenues for the same period a year ago. A major portion of revenues ($1,647,000) included in the second quarter and six months ended June 30, 1995 includes the recognition of amounts previously paid to the company pursuant to an agreement with Microsoft Corp. in connection with the development, production and publication of certain CD-ROM titles and additional payments to the company as the result of the amendment of said agreement as previously announced in June 1995. For the six month period ended June 30, 1995 the company recorded a net loss of $326,068 compared to a net loss of $696,163 reported for the same period in 1994.

At this time, the company intends to release approximately twelve new CD-ROM titles during the third and fourth quarters of this year. It is currently intended that four of these titles are based on television shows: The Baywatch Companion with Screensaver, comprising an array of multimedia features including over one hour of live-action video clips; The Melrose Place CD-ROM which includes the stars from the hit television series "Melrose Place" as well as a multimedia trivia bank with information on the characters and episodes; The Frasier Companion which brings the cast of the Emmy Award-winning show to the computer screen; and, The Beverly Hills, 90210 CD-ROM, which also includes the stars from the hit television series combining classic video clips and photographs as well as a calendar, and a print shop to create stationery, cards, and memos.

Other intended CD-ROMs include Robot City, an interactive adventure game for the audience of Myst and 7th Guest. It is contemplated that this CD-ROM will be endorsed by the Sci-Fi Channel and will be previewed on The Dominion, the Sci-Fi Channel's Web site. The second adventure game, currently intended to be released is Ray Bradbury's The Martian Chronicles An Adventure Game based on one of the most popular science-fiction novels.

Other CD-ROM titles currently intended to be released include The American Heritage Multimedia History of The Civil War reference work and simulation game based on the classic Bruce Catton book; Scientific American Library's The Planets, featuring a planetarium, planetary simulation and interactive tour of the solar system; The Ultimate Einstein, which features an interactive history of Einstein's life and a simulation playhouse that lets users participate in a series of experiments to demonstrate Einstein's theories: and several children's titles, including Hard Hat, the first CD-ROM in the Work & Play series, which introduces youngsters to the playful side of the working world; a second CD-ROM based on the Bank Street Ready-to-Read series, Not now! Said the Cow; and Baby Rom, one of the first CD-ROMs designed especially for toddlers, and which is intended to be published under the name of American Baby magazine which has a circulation of over 1 million.

The company also reported the release of two additional books under its agreements with Marvel Entertainment Group and Putnam Berkley, Iron Man: The Armor Trap by Greg Cox and Spider-Man: Carnage in New york by David Michelinie & Dean Wesley Smith. These books are now on sale in both bookstores and comic shops in their first collector's editions. At this time the company anticipates four more books will be released in 1995, featuring Spider-Man, The Hulk, The Silver Surfer, and The Fantastic Four.

The company recently signed an agreement with Microsoft Corp. to become a "content provider" for The Microsoft Network, their planned on-line service. It is currently the intention that, as a content provider for The Microsoft Network, the company will have a unique forum and plans to include games, on-line fiction, and links to its reference products. It is also currently planned that The Microsoft Network, through the Byron Preiss Multimedia forum, will be the home of Virtual Comics, the first original on-line publisher.

Headquartered in New York City, Byron Preiss Multimedia Co. Inc. develops and publishes multimedia software for the consumer, small business, and educational markets. -0-

                   Byron Preiss Multimedia Company Inc.
                         Summary of Operations
                       For the Three Months Ended
                               June 30,

                                            1995            1994

Revenue                                  $1,645,996       $   --
Gross profit                                788,679           --
Net income/(loss) from operations            76,450        (422,782)
Net income/(loss)                           195,691        (418,769)
Net income/(loss) per weighted
  average shares outstanding                $  0.05          $(0.15)
Weighted average number
  shares outstanding                      4,261,875       2,744,614

                         Summary of Operations
                         For Six Months Ended
                              June 30,

                                            1995            1994

Revenue                                  $1,910,028       $   --
Gross Profit                                845,560           --
Net income/(loss) from operations          (487,109)       (712,337)
Net income/(loss)                          (326,068)       (696,163)
Net income/(loss) per weighted
  average shares outstanding             $    (0.08)      $   (0.28)
Weighted average number
  shares outstanding                      3,880,425       2,473,812
-0-

CONTACT: Byron Preiss Multimedia Company Inc.

James R. Dellomo, CFO

212/989-6252 ext. 132