Capitol Multimedia Wins Big Again At CD-i Association Of North America Awards.

BETHESDA, Md.--(BUSINESS WIRE)--December 15, 1994--Capitol Multimedia (NASDAQ: CDIM, CDIMW) headquartered here, said today that for the third consecutive year, the Company was a major winner of awards presented by the CD-i Association of North America.

Capitol received three gold awards and two silver awards from the association, recognizing outstanding achievement on four of the Company's CD-i titles. "With the level of competition for these awards at an all time high this year, it is very encouraging to receive confirmation that our products remain amongst the best in the industry," said John Gray, President of CapDisc -- a division of Capitol Multimedia.

Category                       Award     CD-i Title
Best Adult Game                Gold      Mad Dog McCree(TM)
Best Children's Game           Silver    Kingdom(TM)--The Far Reaches
Best Use of Technology         Gold      InfoTravel(TM)
Best Point of Information      Gold      InfoTravel(TM)

Best Presentation/ Marketing Title Silver MCI Proof Positive

Mad Dog McCree(TM), the Company's ground breaking full motion digital video game, is a western adventure "shoot em-up" game based on the well-known arcade game Mad Dog McCree(TM).

Kingdom(TM) -- The Far Reaches is an animated fantasy role playing game featuring over 40 oversized maps, 40 minutes of original music, and over 1/2 hour of animation in almost 300 different segments.

InfoTravel(TM) is an interactive multimedia advertising tool targeted for the Travel Market. Produced in cooperation with the Directory Services Group of Bell Atlantic Corp., the application provides hotel guests in-room access to interactive multimedia advertising presentations ranging from local restaurants to recreational activities.

MCI Proof Positive is a customized sales and marketing presentation disc created by CapDisc for MCI. The disc was created using the Company's proprietary ShowMaster(TM) presentation system and features over 900 slides and 45 minutes of full motion digital video including television commercials, video animations, presentations screens, and testimonials.

CD-i is a multimedia system based on compact disc technology. The CD-i player, which reads discs containing audio, video, photographs, text, graphics, and animation, connects to a television set. Users interact with the disc using a hand-held remote controller, mouse, touch screen, or any other pointing device. CD-i players also read existing compact digital audio (CD audio) discs. CD-i is targeted at the consumer, educational, and professional markets. The professional market includes training, point-of-sale (e.g., an interactive catalog in a retail store), point-of-information (e.g., an interactive kiosk in a museum) and referencing. Philips introduced its consumer CD-i player to the United States market in October 1991 and to the European and Asian markets in 1992. Several other hardware manufacturers are currently producing or exhibiting CD-i players including Magnavox, Goldstar, Yashica, and Sony. CD-i players are sold in retail outlets throughout the United States and Europe. Philips has projected that 850,000 players will be installed by the end of 1994.

Capitol Multimedia is one of the few studios producing multimedia titles for both the consumer and the professional markets. CapDisc, the Company's consumer software division is a leading developer and publisher of CD-based interactive entertainment software, publishing titles for CD-i, CD-ROM, Sega CD and beginning in 1995, Sega 32X CD(TM) platforms. CapPro, the Company's professional division, recently announced the release of ShowBuilder(TM) -- an authoring system that enables users to create custom presentations incorporating full screen digital video, still images, graphics, text, and audio using a simple window interface. CapPro also recently participated with Bell Atlantic in the launch of InfoTravel(TM), a new interactive yellow page service that offers hotel guests on-line transaction capabilities through interactive full motion graphics and sound in a yellow pages directory format. Bell Atlantic announced the roll out of InfoTravel(TM) to other major market sites in 1994 and 1995, beginning with four Marriott and two Hilton Hotels in the Washington D.C. area.

CONTACT: Capitol Multimedia Inc.

             Robert I. Bogin, President
             301/907-7000
                or
             Agency Contact:
             Equity Communications
             Ira Weingarten, 805/897-1880
                or
             European Contact:
             Marijke van Hooren
             The Netherlands
             +31/30-923-280