DISNEY MAGIC ARTIST DEBUTS TETHERED PC WEB CAMERA PRODUCTS.

Xirlink, Inc., a developer and manufacturer of digital still, PC and embedded camera products, has signed a multi-year deal with Disney Interactive to develop a line of tethered PC Web Camera products under the Disney Magic Artist brand. The first product, a tethered PC Web Camera that attaches to the computer monitor, will come bundled with Disney Interactive's creativity software, Disney's Magic Artist Studio -- Photo Edition.

"We are excited about our arrangement with Disney, as it allows us to diversify our technology and open several new channels," says Patrick Lin, CEO of Xirlink, Inc. "The combination of our hardware and the Disney Interactive software will be an out standing way for digital imaging to appeal to different demographics."

"With falling prices and easy to use software, the tethered PC Web Camera market is becoming more attractive to families interested in using the latest technology," says Chris Chute, senior research analyst from International Data Corp. "Whether it's families keeping in touch, or parents being able to share time with children in an exciting way, products like the Disney Magic Artist tethered PC Web Camera will appeal to children and help them become comfortable with technology at an early age."

The first product scheduled for release under this new agreement will be available with the actual camera body designed after Mickey Mouse. All products in the line will include a custom user interface to take the complexity out of these types of de vices, while adding a fun and playful component that the entire family will enjoy.

The magic of Xirlink's Disney-branded tethered PC Web Camera truly comes to life with Disney's Magic Artist Studio -- Photo Edition. This state-of-the-art software technology allows users to drop Disney animated characters onto their own photographs imported from other cameras or scanners, creating custom pictures with amazing animations. Parents and children can spend hours together having fun with family pictures, photos from vacations, sporting events or any other images they import into the software.

"The tethered PC Web Camera including Disney's Magic Artist Studio -- Photo Edition is intended to help parents and children enjoy technology together. With its incredible ease of use, this product offers a "plug and play" experience, so parents have an outstanding opportunity to expose their children to the wonders of technology and the simplicity of digital communications," said Steve Finney, senior vice president and general manager, Disney Interactive, North America.

About Xirlink

Xirlink, Inc. is a designer and manufacturer of digital imaging products, including digital still, PC, network and embedded cameras. Xirlink's products are marketed through OEM, distribution, system integrator and retail channels. Xirlink Corporate Headquarters is located at, 2210 O'Toole Avenue, Suite 150, San Jose, CA 95131.

Xirlink can be found on the World Wide Web at http://www.xirlink.com/.

About Disney Interactive

Disney Interactive, part of the Disney Consumer Products division of The Walt Disney Company, develops, markets and globally distributes a wide variety of interactive entertainment, educational and sports CD-ROMs and video games.

Disney Interactive can be found on the World Wide Web at http://www.disneyinteractive.com/.

For more information, call 408/350-8921.