ChannelSpace Acquires Exclusive AOL Canada Partner and Affiliate Design Studio.

NORFOLK, Va.--(BUSINESS WIRE)--Oct. 14, 1999--

ChannelSpace's Roster of Niche Micro Channels Increases

With the Purchase of Leading Web Developer DISCscribe

ChannelSpace Entertainment Inc., the producers of affinity portals that support interest group communities for the Internet and other media, announced today the acquisition of DISCscribe, a leading site design house and one of a select few AOL Canada partners and affiliate design studios. This strategic purchase positions ChannelSpace as one of a mere 18 companies partnered and affiliated with America Online (AOL) worldwide, and offers substantial new revenue opportunities and access to potential new visitors through AOL's extensive audience base.

As a result of the agreement, ChannelSpace (www.channelspace com) obtains ownership of DISCscribe, and their popular sites, The Gathering of the Clans (www.tartans.com, keyword Clan), a site dedicated to all things Scottish, and the upcoming Virtual Atlantic Canada, a definitive source of information and resources related to Eastern Canada. DISCscribe is also the exclusive contractor for the not-for-profit web site Child Find Canada, a destination dedicated to child safety and locating missing children throughout the Canadian provinces.

Currently, ChannelSpace is in the process of building the AOL content for collectingchannel.com (www.collectingchannel.com), its flagship affinity portal and provider of the most complete collecting-related content ever available on the Web. ChannelSpace also recently completed the re-launch of its Irish Clans web site (www.irishclans.com), a joint venture with Clans of Ireland Ltd., the non-profit registry of Irish Clans and families based in Naas, Ireland.

"The strategic acquisition of DISCscribe enables ChannelSpace to further provide its original content to over 16 million AOL members around the world," says Barry Friedman, Co-Founder and CEO of ChannelSpace. "This deal strengthens ChannelSpace's position as the ultimate Web site, dedicated to providing Internet users with one unique, reliable source of information in varying fields of niche interest."

"The best part about being involved with ChannelSpace is the opportunity to work with such a talented and enthusiastic group of people. There's a great sense of team spirit. Although individual team members are spread all over the map, the use of Internet technologies to communicate makes it feel like we're working side-by-side," says George Butters, CEO of DISCscribe. "ChannelSpace is also giving us a chance to realize the full potential of all of our hard work in AOL development and our own affinity channels for the Scottish and Irish communities."

About ChannelSpace Entertainment, Inc.

ChannelSpace Entertainment, Inc., produces and markets customized channels that support consumer-interest Web sites, major portal players and technology providers. These channels include original content, high-level audio/video assets, articles and authoritative reviews on well-defined areas of appeal. CSEI industry experts and friends of the collectingchannel.com develop and package content relevant to niche interests in one, easy to use place, and provide consumers with access to a range of information that they have never had before. Future channels include, but are not limited to, the CelticChannel, CaribbeanChannel, VirtualAtlanticChannel, and LindberghChannel.

About DISCscribe Ltd.

DISCscribe Ltd. is New Brunswick's oldest Web site development company and is an AOL Canada partner and affiliate Design Studio. The company has provided online design, construction and hosting for a wide-range of private and public sector clients, including NBTel, the CBC, the Software Publishers Association and the New Brunswick Information Technology Alliance. DISCscribe also publishes The Gathering of the Clans on the Internet and on AOL Canada, a site that was recently chosen by the BBC as part of its Guide to the Best on the Internet.