Cobalt Moon rises; Microsoft Network, MGM Interactive and Fujitsu deals in place.

SANTA MONICA, Calif.--(BUSINESS WIRE)--Dec. 2, 1996--Cobalt Moon, an interactive entertainment production and development company, was officially launched Monday by industry veterans Matti Leshem, Joe Orr and Will Hobbs.

Cobalt Moon specializes in creating innovative, branded entertainment for the Internet and other new as well as traditional media.

Cobalt Moon has strategically aligned itself with some of the world's leading multimedia firms, including the Microsoft Network (MSN), MGM Interactive and Fujitsu. As the first independent company to create original programming for the Microsoft Network, Cobalt Moon is responsible for developing the highly acclaimed satirical news program, Second City Headlines & News, exclusively for MSN.

The series has just been renewed for an additional 13 weeks.

Cobalt Moon is also currently developing a Websodic series for MGM Interactive and has developed a technology that will enable users to manipulate camera angles while viewing the show, creating their own personalized interactive experience.

Cobalt Moon was chosen by Fujitsu to be the first independent company to design virtual worlds on the Web using Fujitsu's Worlds Away avatar-based technology currently available only on CompuServe.

Together, Orr, Leshem and Hobbs represent more than 40 years of combined experience in the entertainment and multimedia industries. Orr, an acclaimed producer, director and award-winning editor, oversees the day-to-day business aspects of the company as well as working with Leshem on the development of all television, film and interactive projects at Cobalt Moon.

Leshem, an award-winning CD-ROM director and accomplished writer, director and producer, is an expert in interactive entertainment and utilizes his creative expertise to craft traditional media projects into unique interactive programming for the Internet.

Hobbs, a pioneer in the distribution of music on the Internet during his tenure at IUMA and former founder of leading Web site design firm Energy Media, is responsible for all technological aspects of the company and oversees art, layout, programming and animation for all Cobalt Moon projects.

``Cobalt Moon seeks established brands to create innovative interactive entertainment on the Web,'' commented Leshem. ``Technology is a large part of the creative process. The company prides itself in having both the technical and creative divisions work hand-in-hand to develop the most impactful, original programming available today.''

According to Orr: ``Having previously been involved with broadcast design and development, this endeavor was the next logical step for me as the industry shifts to a more universal interactive medium. Cobalt Moon offers entertainment solutions to those companies seeking to conduct business in the interactive marketplace.''

``We've assembled an award-winning creative and technological team to develop new and powerful media experiences for the Internet and beyond,'' remarked Hobbs. ``We envision the company to be at the forefront of interactive entertainment for the 21st century.''

Cobalt Moon currently employs a staff of 20 and has headquarters in Santa Monica. The company's Web site can be accessed via the Internet at http://www.cobaltmoon.com

CONTACT: KillerApp Communications

Anthony Andreano/Andrea Salkin, 213/938-7600

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